With a move towards cashless transaction, the Union government is all set to introduce new laws which will bring harsher punishment for cheque bounce cases.
According to sources, the Centre is mulling stringent punishment for cheque bounce cases and this new legislation is likely to be brought in the upcoming budget session of parliament. The move is expected to soothe traders who are hardly hit by cash crunch post-demonetisation. The new laws would be enforced from next year which could act as a restriction for defaulters in a country saddled with above 1.8 million lawsuits on dishonoured cheques.
Sources says that there has been many suggestion given to the central government from the delegations of the traders association and it is said that centre is expected to give a nod for their suggestion and would introduce a law where the defaulter would be put in jail without bail at the court’s discretion if he fails to come to compromise or settle the payment within a month of tenure.
According to present law, cheque bounce is a bailable offence which enables defaulters to stay away from jail as long as the trial is on. The law stipulates imprisonment of up to two years or fine that may extend up to double the dishonoured amount, or both.