Forum for Integrated National Security (FINS)

Kolkata, Forum for Integrated National Security (FINS), an all India CBDT approved body, working in the fields of internal, external and social security is concerned about the recent financial fiasco that has sparked off with the closure of Saradha Group run media houses.  The Ministry of Corporate Affairs has pointed out that there are 73 companies in West Bengal that are engaged in collecting illegal deposits but so far   State has initiated action only against Saradha and that too only under the Criminal Procedure Code.

We have made our submission to Honourable Chief Minister Mamata Banerjee that the state needs to act in such a situation on an emergency basis and prevent further erosion of funds from the system because this would have tremendous adverse effect on the economy.

A State, under the Federal structure, has the competence to implement Central Laws. It is competent to act on the basis of Prize Chits Money Circulation Scheme (Banning) Act of 1976, Prevention of Money Laundering Act 2002 and the Indian Penal Code. The state financial department can also regulate companies under the provisions of registration and enrolment in the Municipal Act.

We understand that the State has initiated action to place a new bill in the assembly for having a new law to have control over illegal chit funds and such companies that are collecting illegal deposits, FINS is afraid that any legal hurdle in the implementation of law would delay action against unscrupulous actors.   Delay in initiating action may cause transfer, assignment and commitment of assets (business, personal, directors’ and public partners’ assets).  It is important to prevent transfer, assignment and commitment of assets because such assets can be used for auction to mobilize funds and compensate the affected depositors.

FINS is not averse to the idea of compensation but the mechanism should be properly worked out and has to be consistent with the Law.Honourable Chief Minister has plans to form a corpus of Rs 500 crore through raising taxes but FINS is afraid that this would not be permissible by law since the state cannot raise funds to participate in private affair. All the companies involved in the business of illegal money raising are private companies and money deposited by depositors is also private affairs.  Technically both companies and depositors in such cases have acted illegally and any tax collection to compensate depositors, who have been affected as a fall out illegal action, would be against the principles of law.  Law allows the government to mobilize public money only in the cases of compensating for National Calamity, Riots and Wars.

The state government should immediately act with available legal resources and avoid any such measure that would create controversies because Justice Delayed is Justice Denied.

About FINS: Forum for Integrated National Security (FINS) is an apolitical; CBDT approved All India Non Governmental Organisation. It relentlessly formulates Policy Papers and develops awareness amongst Citizens on ‘NATIONAL INTEGRITY & SECURITY’ related issues covering: Boarder Security – Land, Air & Water;   Cross Border & Internal Terrorism;   Inland Political Unrest & Naxalism; Infiltration & Illegal Immigration;North East & J&K Insurgency;Impact of Nuclear Environment;   Global Security Scenario vis-à-vis Indian Position;   Security for ALL including Social, Cultural, Educational, Health, Employment, Food, Economic, etc. FINS, with its head office in Mumbai, has 15 chapters across the country. The persons behind FINS are mainly Intellectuals, Eminent Personalities and Security Experts from all spheres of society including high ranking retired Military, Air Force & Navy and IAS/IPS Officers, Academicians & Researchers, Creative Classes, Advocates & Solicitors, Engineers & Doctors, IT, Financial & Management Professionals, Journalists, Industrialists, Social Workers, etc