Govt taking steps to protect depositors interest: FM

Hyderabad, Dec 22 (UNI) Denying that the Andhra Pradesh government was acting with ''revenge'' against the Margadarshi Financiers, owned by a media baron, state Finance Minister K Rosaiah today said the government was taking steps to protect the depositors' interest.

Asking the opposition to separate the issue of Freedom of Press from 'violation' of law by the firm, the Minister told the State Assembly, amidst thumping of desks by treasury benches, ''the government is examining the whole issue in all its seriousness and proposes to initiate appropriate action for protection of the interests of depositors.'' Replying to the debate after the main opposition TDP was suspended for the day for stalling the proceedings and trying to prevent a discussion on the issue, he said ''the government could not close its eyes to violation of the law.'' Initating the debate, Congress member V Vasanthakumar demanded that the government should initiate a judicial probe or an inquiry by the Central Bureau of Investigation against the firm.

Asked by the opposition as to what prevented it from taking action against the firm, the Minister said the government could not act in noted.

Informing the House that the firm, an unincorporated body, had accepted Rs 2,200 crore deposits from public as on March 31, 2005 in 'complete violation' of the RBI Act, 1934 and incurred accumulated loss of Rs 1,819.16 crore till last fiscal, Mr Rosaiah said financial prudence demanded that a loss-making firm could not accept unsecured loans or deposits from public.

On the opposition's demand whether the state government had powers to take action against the firm, the Minister said ''both the RBI and the state government are independently and equally empowered to launch prosecution against errant firms.'' While BJP floor leader G Kishan Reddy claimed that the government action smacked of 'vendetta', CPI(M) member M A Gafoor while making it clear that the government was free to take action against the firm, the Assembly should not be used to target any individual.

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