Andhra Pradesh - Hyderabad

Chit fund Bill passed amid protests

HYDERABAD: Amid charges by the Telugu Desam and the Bharatiya Janata Party that it was aimed at targeting Margadarsi Chit Funds Limited and Mr. Ch. Ramoji Rao, the Andhra Pradesh Chit Funds (amendment) Bill 2007 was adopted in the Assembly on Wednesday evening.

The Bill prescribes a minimum paid capital of Rs. 1 lakh for doing chit fund business, 100 per cent security of the chit amount prescribed, higher penalty of two years imprisonment and Rs 5,000 fine and settlement of disputes by the officials of the registration department instead of the civil court.

Vema Narender Reddy (TDP) and G. Kishan Reddy (BJP) said the Bill smacked of political vendetta against Mr. Ramoji Rao.

They said the legislature was being used to favour a few and harass some others. Mr. Kishan Reddy said that the legislation would enable more illegal chit fund companies to operate and flourish.

Refuting their allegation, Minister for Endowments, Registration and Stamps J. Ratnakar Rao held that the legislation was primarily aimed at protecting small depositors against cheating.

The Communist Party of India (Marxist) floor leader N. Narasimhaiah expressed doubts whether the legislation would serve the right purpose. The Telangana Rashtra Samiti , Communist Party of India, MIM and some Congress members spoke in support of the Bill.

The Assembly passed five other Bills to amend the Andhra Pradesh Value Added Tax Bill, 2007.

© Copyright 2000 - 2009 The Hindu