The proposed changes could do away with the long-drawn process of settling disputes, even after years of litigation.
Among the suggestions being considered is to give a window — possibly 30 days — for settling disputes between complainants and people whose cheques bounced.
If the two parties fail to come to an understanding within that time, the defaulter could be put in jail without bail at the court’s discretion.
“These are among several options on the table. We will finalise the specifics shortly. To promote cashless transactions, we will not shy away from incorporating stringent provisions,” said a source involved in deliberations over amendments to the negotiable instruments act, which governs cases relating to bounced cheques.
Cheque bounce is a bailable offence under the current law, which enables defaulters to stay away from jail as long as the trial is on. The law stipulates imprisonment up to two years or fine that may extend up to double the dishonoured amount, or both.
Of the options being considered, the government could make the law a non-bailable offence.
“The idea is to minimise litigation by putting in place strict deterrents,” an official said.
The government would try to pass the amendments to the law when Parliament sits for the budget session, likely from the last week of January, sources said.
Besides electronic money transfer, by direct debit or with debit and credit cards, cheques are an important cog in the government’s push for a post-demonetisation cashless economy, aimed at stopping the circulation of illicit funds and counterfeiting.
But cheque defaults — mostly people issuing them without sufficient funds in their bank account — are rampant.
Hindustan Times New Delhi,26th December 2016
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