New Delhi, Sep 23 (KNN) The Rajasthan Cabinet has given in-principle approval to the Rajasthan Protection of Interests of Depositors (in Financial Establishments) Ordinance, 2016. The provisions in the Ordinance shall protect the interest of depositors in case of fraudulent default by any financial establishment. It will be sent to the President of India through Governor for his consent.

Briefing the media after cabinet meeting Parliamentary Affairs Minister Rajendra Rathore informed that provision has been made in the Ordinance that if financial establishment defaults any repayment of deposit on maturity along with any benefit as promised or fails to render service as assured against the deposit such financial establishment shall be punished with imprisonment for a term from three to seven years and with fine from two to five lakh rupees.

According to a release, Rathore said, “Provision has also been made regarding attachment of properties on default of return of deposit. If District Magistrate is satisfied that financial establishment is not likely to return the deposits or make payment of interest and other benefits to the depositor after giving an opportunity of hearing to the establishment, can issue an order for attaching the money, property or assets belonging to or acquired by such establishment either in its own name or in the name of any other person from and out of the deposits.”

The District Magistrate can appoint a competent authority not below the rank of Assistant Collector to exercise control over the money, properties and assets attached by the District Magistrate. The competent authority shall make payment to the depositors as per the orders passed by the designated court. The State Government with the concurrence of the Rajasthan High Court shall designate a District and Sessions Court to be a designated court which shall complete the hearing and take decision within a year.

Rathore informed that with the objective of promoting private investment in higher education sector the state cabinet gave approval to the proposal of establishing Nirwan University on 34 acres of land at Jhar Bassi near Jaipur by Shri Nirwan Charitable Trust, Sri Ganganagar.

The University shall provide study and research facility in subjects like Medical, Dental, Nursing, Physiotherapy, Life Sciences, Pharmacy and Homeopathy etc. The decision will pave way to bring investment of worth Rs. 250 crore and provide direct employment to 1000 persons.