Economic Protection And Financial Security: An Analytical Study Of Chhattisgarh’s Depositor Safeguard Laws
- IJLLR Journal
- 4 hours ago
- 2 min read
Ashutosh Singh Kachhawaha, PhD. Scholar (Constitutional Law)
ABSTRACT
The financial ecosystem of any region significantly relies on the trust and security provided to investors and depositors. Recognizing the growing threats of financial fraud and the exploitation of public trust, the state of Chhattisgarh introduced the Chhattisgarh Protection of Depositors’ Interest Act, 2005, and subsequently, the Chhattisgarh Protection of Depositors’ Interest Rules, 2015. Together, these legislative instruments seek to create a robust framework for safeguarding the financial interests of depositors against fraudulent schemes and unregulated financial entities. This research critically examines the architecture, enforcement mechanisms, and practical effectiveness of the 2005 Act and 2015 Rules, exploring their role in enhancing economic protection and ensuring financial security within the state. It delves into the statutory provisions, the special powers conferred upon enforcement agencies, and the establishment of specialized adjudicatory bodies aimed at expediting justice for defrauded depositors. Further, the paper undertakes a comparative analysis with similar legislative measures across India and selected international jurisdictions, thereby situating Chhattisgarh's framework within a broader regulatory context. Despite the progressive intent underlying these laws, challenges persist in their implementation. Loopholes, procedural delays, limited public awareness, and regulatory overlaps often dilute their efficacy. Through an in-depth analysis, the study identifies these systemic shortcomings and proposes pragmatic recommendations for enhancing depositor protection, ranging from legislative refinements to institutional strengthening. By integrating legislative study with practical insights, this paper contributes to the ongoing dialogue on financial security, regulatory reforms, and depositor rights protection. It emphasizes the need for a dynamic, transparent, and proactive legal environment to foster public confidence in financial systems. Ultimately, the research advocates for a harmonized approach, balancing stringent regulatory action with sustained public engagement, to ensure that the legislative vision of safeguarding depositors' interests translates effectively into ground realities.
Keywords: Financial ecosystem, Financial Fraud Prevention, Enforcement Mechanisms, Regulatory Reforms, Depositor Protection.
