Pathanamthitta: In a tactical move to prevent the accused in the Popular Finance case from securing bail, the police have prepared a new first information report (FIR) which includes Banning of Unregulated Deposit Schemes (BUDS) Rules enacted by the Central Government.
With BUDS being charged on the accused, both the owners as well as the managers of Popular Finance who accepted the deposits will have to face trial.
The police have so far arrested five persons, including Popular Finance managing director Roy Daniel, his wife Prabha Thomas, who is also the managing partner, their daughters Rinu Mariam Thomas and Riya Ann Thomas in the case.
The police had earlier invoked the state's deposits protection law, which did not have sufficient provisions to prevent the granting of bail to the accused. Moreover, Popular Finance had accepted deposits from the public considering them as business partners.
As a result, under the state law, the common people who lost money in the scam would have to share the losses. According to legal experts, the Central law can also plug this loophole in the state rules.
With the filing of the new FIR, the company would be considered to have accepted deposits and when the losses are repaid, the depositors will be given first preference. Only later would government taxes and bank debts be settled.
Experts also said that exemplary punishment could be given to the accused if the government sets up a special court in consultation with the Chief Justice and transfers all cases related to the scam to this court.
