Approval of Bihar Unregulated Deposit Scheme Banning Rules- 2023

• 06 Jul 2023

Why in News?

The Bihar Cabinet on July 4, 2023 approved the Bihar Enacted Deposit Scheme Prohibition Rules- 2023.

Key Points:

• Under this policy, the state government has got the right to investigate and take action against Chit-fund companies operating in Bihar.
• The state government has become the competent authority to take action against such companies for depositing money through illegal deposit schemes from the general public and depositors of the state.
• Additional Chief Secretary of the Cabinet Department, Dr. S. Siddhartha said that those who run the deposit scheme will be subject to the provisions of the Restrictions Rules- 2023 approved by the Cabinet.
• In this Manual, the Government of Bihar has been made the competent authority. This has empowered the state government to investigate, audit and take action against companies running deposit schemes after irregularities are found.
• All procedures for confiscation and sale of their properties to the state government will be followed under this rule. Small deposit schemes are run in the state, action will be taken against them under this.
• This new rule will protect the general public from illegal deposit schemes and fraud. The government has got the power to return or repay investors' deposits by confiscating the properties along with stringent punishment and heavy monetary penalties against the accused.
• Government lawyers working in different levels of courts will now be selected by a state-level selection committee. This committee will be formed under the chairmanship of the Advocate General. It will have a law secretary, special secretary of the law department or joint secretary as members.
• This committee will select PP, GP, APP AGP at the district level, Additional Advocate General Government Advocate for High Court, Pleader, Standing Council Public Prosecutor and Additional Advocate General and Standing Council for the Supreme Court.
• The Cabinet has approved the Bihar Law Officer (Commitment) Rules- 2023 for this.
• In the new rules, a provision has also been made about whether government lawyers will do private practice or not.
• The state government's law department has issued a notification regarding the Bihar Law Officer (Commitment) Rules- 2023. It shall come into force from the date of publication in the Official Gazette.
• Additional Chief Secretary of the Cabinet Department said that in view of the situation arising due to Covid-19 and the Ukraine war, students pursuing medical graduates from abroad will now get an opportunity to do internships in medical college hospitals of the state. Not only this but students graduating from such abroad will also be given scholarships equivalent to the National Medical Commission (NMC).
• Students pursuing medical graduates from abroad will get a chance to do internships on 7.5 percent of the total internship seats.
• According to the guidelines of the NMC, an internship facility is to be provided in medical college hospitals of the state for internship in order to register with the State Medical Council. For this, no amount or fee will be charged to those students.