Bihar sets up special courts to try corrupt NBFCs

Patna, May 8: To curb the largescale financial irregularities by several fly-by-night Non-Banking Financial Institutions (NBFC) in Bihar, the State Government has decided to institute two specially designated courts to try and book the corrupt operators.

''Alarmed by several complaints from various corners of the state, the government has decided to set up two specially designated courts to try these cases here and in Muzaffarpur and bring justice to the victims,'' Bihar Deputy Chief Minister-cum-Finance Minister Sushil Kumar Modi said yesterday.

''During the past nine years these crooked NBFCs looted more than Rs 12,000 crores from the people of Bihar and fled the state after closing down their operations,'' the Deputy Chief Minister said.

He came down heavily on the previous RJD government for allegedly doing nothing to alleviate people's misery and restore their confidence on non-governmental institutions.

Mr Modi said as a result of an indifferent attitude of the previous government, almost 99 per cent of these fraudulent operators went scotfree after closing down their establishments.

Admitting that it was very difficult to nab the heads of these corrupt financial institutions at the present juncture, the Deputy Chief Minister, however, made it clear that the government would leave no stone unturned to capture and try them by all means.

On whether the government would allow any further operation of NBFCs in the state in the wake of the past experience, Mr Modi said from now on everything would be done strictly in accordance with the RBI guidelines and as per law.

He, however, did not elaborate.

UNI