Bihar Govt sets up designated courts to try corrupt NBFCs

Patna, May 8 (UNI) In a major step to curb largescale financial irregularities of 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.

Bihar Deputy Chief Minister-cum-Finance Minister Sushil Kumar Modi alleged here yesterday that during the past nine years these crooked NBFCs had looted more than Rs 12,000 crore from the people of Bihar taking advantage of their innocence and fled the state after closing down their operations.

Alarmed by several complaints from various corners of the state, the government had decided to set up two specially designated courts to try these cases here and in Muzaffarpur and bring justice to the victims, he stated.

Mr Modi came down heavily on the previous RJD government for allegedly doing nothing to alleviate the peoples's misery and restore confidence among them about such non-governmental institutions.

Mr Modi said as a result of the indifferent attitude of the previous government, almost 99 per cent of these fly-by-night operators had been able to go 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.

''Keeping this in mind we have decided to set up two separate designated courts in Patna and Muzaffarpur very soon to start trial on the basis of whatever resources and documents available with us as well as with the victims,'' he said.

On whether the government would allow any further operation of the NBFCs in the state in the wake of 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.

Incidentally, it was alleged that during the past few years more than Rs 12,000 crore had been by the people in Bihar, mostly from the semi-urban and rural belts, after being attracted by the promise of high and short-term return of their investment from a number of NBFCs.

UNI