Sandesh Prabhudesai
24 July 1999
Though delayed little over one year after taking a cabinet decision,
the Congress government has finally introduced a comprehensive bill in the ongoing
Assembly session to protect interest of depositors investing with the non-banking
financial companies, on the lines of legislation existing in Tamil Nadu.
Thousands of Goans, mostly the Gulf-based NRIs, are being duped for
over Rs 50 crore by around 20 such NBFCs in last three years, while more cases have still
been coming to light. The official police figures however indicate only Rs 12.22 crore by
19 companies.
The most infamous among it is the case of the Western India Financial
Services Ltd in which several prominent people had invested as it was headed by union
environment minister Suresh Prabhu, a banker-turned Shiv Sena leader. His name is being
recently dropped from the case by the district court while all other directors of WIFSL
are still absconding.
The legislation got delayed for almost one year since issuing of an
ordinance, as decided by the cabinet in May last year, required central nod. The plan is
to get the legislation passed as soon as possible, in order to provide little relief to
those who have invested their life-time earnings in these NBFCs.
The Goa Protection of Interests of Depositors (in Financial
Establishments) bill , a replica of Tamil Nadu act, provides for stiff penal provisions
like a fine upto Rs one lakh and imprisonment till ten years to every responsible person
of the financial establishment. It also provides for attachment of property and setting up
of special court to deal with such cases.
"There has been widespread public concern about the operation of
such bodies which amass substantial deposits from the gullible public and then close down
operations putting depositors to a loss", observes chief minister Luizinho Faleiro.
Several NBFCs have mushroomed in Goa, targeting the Gulf-based NRIs who
invest lakhs of rupees into such NBFCs, for want of attractive rates of interest. They
follow a similar modus operandi by opening posh offices, appointing Goans as managers and
commission agents and win over confidence for at least six months or a year, before
disappearing from the scene.
Rockland Leasing & Plantations Company is heading the list of
frauds with an amount of Rs 17 crore invested by thousands of Goans. Second in the line is
the J V J Finance with Rs six crore and Calcutta-based Janapriya with an amount of Rs 1.80
crore. Surprisingly, all three companies do not figure in the police list while official
figures of others also indicate low volume of amount.
Topping the police list is the United Development Finance Corporation
with Rs 3.41 crore, followed by Dealwell Finance, Middlemen Investments, Skyline Aquatech
Exports and WIFSL, against which complaints have been received officially for duping the
investors for over Rs one crore each.
Others include, TN-based Sarvana Credit and Investments Ltd, Speer
Finance, Woodstick & Woodstick, Welfare Savings, Prudential Capital Market, Deeplaxmi
Green Plantations, Helios Finance, Anubhav Plantations, Aneja Financial Services, Gripwell
Club etc.
