Committee to inquire into the irregularities and illegal activities in Finance and Finance Leasing Businesses, has presented a set of short-term and long-term proposals in its report handed over to Central Bank (CB) Governor Prof. W.D. Lakshman recently. It has recommended preventing the use of force in the possession of equipment, abolishing illegal leasing institutions, and regulating forms used for entering into finance leases.
In the long run, the report has recommended amending the Finance Leasing Act to expedite the process of recovery of equipment through the court, and to make the concealment of equipment a criminal offence.
The committee has also asked to streamline provisions relating to offences in the Finance Leasing Act, and to prevent the use of the word “Leasing” by illegal operators.
The three-member committee is headed by Central Bank Legal and Compliance Department Director K.G.P. Sirikumara. It has placed particular emphasis on the illegal and irregular activities of finance leasing businesses.
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