Bills in Sikkim Assembly


GANGTOK, December 11: One new Bill and two amendment Bills were introduced today in the first day of the winter session of the Sikkim Legislative Assembly by the Sikkim Democratic Front (SDF) government.

The new Bill, Sikkim Protection of Interests of Depositors (In Financial Establishments) Bill was tabled by Chief Minister Pawan Chamling.

“The Bill seeks to provide suitable legislation in public interest, in order to regulate the activities of financial establishments that are not covered by the Reserved Bank of India Act, 1934 (2 of 1934) and to safeguard the interest of the depositors”, said Chamling in his statement of objects and reasons while tabling the Bill.

“There has been in recent past, emergence of a number of financial establishments not covered by the Reserved Bank of India Act, 1934 with the sole object of collecting money as deposits from the public, mostly middle class and the poor, on the promising of paying very high rates of interests and with no guarantee or obligation to return the deposits to the depositors on maturity. Many such financial institutions have defaulted in return of deposits on maturity, thereby inviting public resentment, socio-economic problems and law and order problems”, said Chamling.

In recent past, fraudulent financial institutions had duped crores of rupees from the Sikkimese people who had invested their money after receiving promises of high interests.

The Bill after it becomes an Act would empower the State government to appoint authorities to implement the Act. The financial establishment intending to carry out its business in the State would also have to obtain a trade license from the State Urban Development department and then have to apply to the competent authorities for registrations.

“A registered Financial Establishment shall apply to the Competent Authority for permission to accept deposits, duly specifying the maximum amount that the Financial Establishment intends to receive as deposits, and furnishing such information and documents as may be prescribed, and no deposit shall be received by the Financial Establishment without prior written permission from the Competent Authority”, the Bill states.

Before receiving permission to accept deposits, the Bill regulates the financial establishment to execute a bond in favour of the competent authority charging immovable property for the value not less than sixty percent of the proposed total amount of deposits which it intends to receive or make invest in government securities or furnish a bank guarantee valid for 3 years from a scheduled bank in favour of the competent authority.

The Bill also intends to bar the financial establishments not covered by RBI Act on receiving or renewing any deposit which is repayable on demand and on inviting or receiving any deposits at a rate of interest which is more than 3 percent by a scheduled commercial bank. It also lays down the particulars for the applications for deposits and issuing of receipts.

The Bill further tasks the financial establishments to submit half yearly returns of deposits with information regarding the total amount of deposits collected, total maturity amount due for repayment and other details to the competent authority. The institutions also cannot shift or close its offices without publishing such intentions and without obtaining prior written approval. A depositor who does not receive the maturity amount due after expiry of 15 days can also lodge complaint with the competent authority which can then debar the establishment from accepting any deposit until the full amount due is paid to the complainant.

It is proposed in the Bill that the government may, in order to protect the interest of the depositors of such financial establishment pass an ad-interim order attaching the movable or immovable property alleged to have been procured either in the name of the financial establishment or in the name of any other person from and out of the deposits collected by the establishment.

The persons responsible for erring financial establishments shall be punished with an imprisonment for a term which may extend to 10 years and with fine which may extend to Rs. 1 lakh or both and the establishment shall also be liable for fine which may extend to Rs. 1 lakh, the Bill propose.

Discussions and voting on the Bill will take place tomorrow, the final day of the winter session of the Assembly.

The first day of the winter session of the Assembly also saw introduction of Sikkim Ministers, Speaker, Deputy Speaker and Members of Sikkim Legislative (Salaries and Allowances) Amendment Bill by the Parliamentary Affairs minister DN Takarpa.
The amendment Bill seeks to revise the house rent allowances for the members of the Assembly. The minister pointed out that there is shortage of government accommodation and all the legislators have not been provided government accommodation and some of them are staying in their private residences.
Keeping in view of the price rise and present market valuation, the existing rate of house rent of Rs. 3000 per month has become inadequate to the dignitaries, said Takarpa. He has sought in his Bill to revise the existing rate to Rs. 14,500 for Speaker, Deputy Speaker, ministers and members of Legislative Assembly appointed as chairman, chairperson, advisors irrespective of cabinet status or not.

Another amendment Bill seeking to amend the Sikkim Manipal University of Health, Medical and Technological Sciences (Amendment) Bill was also tabled by Takarpa in his capacity as the State Health minister.

Discussions and voting on the Bills will take place tomorrow.

Earlier, the newly elected SDF legislator from Namchi-Singithang constituency bye-polls Binod Rai took his oath as the member of the Sikkim Legislative Assembly. Speaker KT Gyalsten administered the oath to him.

The House also made an obituary reference to late Dr YSR Reddy, former Chief Minister of Andhra Pradesh who had been killed in a tragic chopper crash on September 2 earlier this year.

Speaker KT Gyalsten read out the obituary expressing the deep sorrow over the tragic death and expressed the full condolences of the House to the family members of late Reddy. Chief Minster and Leader of the House Pawan Chamling also paid homage to the great leader in his obituary reference. The House observed a two minute silence in memory of the deceased.

Winter Session-Day One

Bills tabled:

Sikkim Ministers, Speaker, Deputy Speaker and Members of Sikkim Legislative Assembly (Salaries and Allowances) Amendment Bill

Sikkim Protection of Interests of Depositors (In Financial Establishments) Bill
Sikkim Manipal University of Health, Medical and Technological Sciences (Amendment Bill)

Private Member’s resolutions adopted

‘Seeking exemption from payment of Income Tax under the Income Tax Act 1961 for the left out categories of persons’-proposed by Ugen T Gyatso Bhutia

‘Seeking to be resolved that the State of Sikkim will be made 100% Literate State as per Human Resource Development Plan’-proposed by Tshering Wangdi Lepcha

‘Seeking to be resolved that the people of Sikkim will work to strengthen security and safety of the country and contribute effectively towards integrity and unity of the Country’-proposed by Menlom Lepcha

‘Seeking to be resolved that the State of Sikkim, would be made an organic State which will be achieved within the targeted period as per Human Resource Development Plan’-proposed by Laxuman Lepcha

‘Seeking to be resolved to preserve and strengthen the prevailing peace and tranquility in Sikkim to achieve the said objectives and also to promote the esteem, good will and self-respect of Sikkimese people’-proposed by Phetook Tshering Bhutia

‘Seeking to be resolved that unemployed persons of the State would be made skilled work-force through various livelihood, schools to be opened in different constituencies and through other training courses in the State’-proposed by Tushi Devi Rai.

‘Seeking to be resolved that the State of Sikkim will be made a poverty free State as per Human Resource Development Plan’-proposed by Beg Bahadur Rai.

source: sikkim express