THE ASSAM PROTECTION OF INTERESTS OF DEPOSITORS (IN FINANCIAL ESTABLISHMENTS) ACT, 2000

Registered No. ~ 768/97 1 c i. . ~mm. The Assatn Gazette \5Pff~Cf . EXTRAORDINARY .-; ~' !lt@.~fl:ifil~ '.. PUBUSHED BY AUTHORITY ~' 158f~llfi~ . ~$~r~. 21 \gf. ~'~· 2000, 301iilt~1~. 1922(llf~) No. 158 Dispur, Frid::iy , 2i~t Jul y , 2000, 30th Asadha i92 2 IS. E. J GOVERNMEN"l OF ASSAM ., OR DERS BY THE GOVERNOR . . " LEGISLATIVE DEPARTMENT : LEGISLATIVE BRANCH NOTIFlCATfON The 9th May, 2000 No. LGL.146/99/13 :-The following ,Act of the Assam L~gislative Assembly which received the assent of the Governor is ·h ereby published for genen.l information. 574THE ASSAM GAZETTE, EXTRAORDINARY JULY 21, 2000 ASSAM ACT No. VI OF 2000 (Received the assent of the Governor on 6th May, 2000) THE ASSAM PROTECTION OF INTERESTS OF DEPOSr TORS (IN FINANCIAL ESTABLISHMENTS) ACT, 2000 AN ACT to protect the deposits made by the public in the Financial Establishments and matters relating thereto. It is hereby enacted in the Fifty-first Year of the Republic 0f India as follows :-- CHAPTER -I Short title , 1 (i) Th is Act may be called the Assam extent •nd ' comme nce­ ment . Protection of Interests of Deposi- tors (in Financial Establishments) Act, 2000. {ii) It extends to the whole of Assam. (iii) It shall come into force at once-:-+ Definition 2. In this Act, unless the context other­ wise requires, -- (i) 'Competent authority' means the authority appointed under section 4; (ii) (iii) (iv) 'Deposit' mean1 the deposit of a sum of mc•ney made with a Finan­ cial Establishment for a fixed period, for interest or return in any kind, 'Financial Esta blishment' means an indi­ vidual, an association of individuals or a firm carrying on business of receiving deposits under any scheme or arrapge­ ment or in any other manner but does not include a company registered d h · A l 956 CcQtral Act un er t e Co mpames ct, or a No. 1 of Corporation or a Cc-operative Society 1956. owned or controlled by any State Government or the Central Govern- ment or a Banking Company as de- 1 A fined under Section !'J(c) of the ~~~r~ 194~ Banking Regulati0n Act, 1949 or a non-banking financial company as defined in clause (f) of Section 45--1 of the Reserve Bank of India Act, 0 8 1 At Q enra c L34; No. 2 of 'Government' means the State Govern- 1934. ment of Assam. --------------- --- --------- .. --~ASSAM GAZETTE :EXTRAOR_!?INAR~ !_ULY 21, 2000 575 CHAPTER- II Attachment of proper­ ties on de­ fault of re· turn of deposits. Competent authority, . 3. Notwithstanding any-thing contained in any other law for the time being in force :- (i) Where, upon complaints received from a depositor or number c•f depositors, that any Financial Establishment defaults the return cf deposits after maturity, or (ii) Where the Government have reason to be­ lieve that .any Financial Establishment is acting in a calculated manner with an in­ tention to defraud the depositors and if the G0vernmc nt are satisfied that such Financial Establishment is not likely to return the deposits, the Government may in order to protect the interests of the de­ positors of such Financial Establishment, pass an ad-interim order attaching the money e r other property alleged to have been prc cured either in the name of the Financial Establishment or in the name of any other pcrscn from and out of the depos~t collected by the Financial Establishment, or if it transpires that such money or other preperty is not available for attachment or not sufficient for repayment of the de­ posits, such other property of the said Fin­ ancial Establishment or the promoter, manager or member of the said Financial Establishment as the Government may think fit and transfer the control over the said money or property to tho competent au­ thority. 4. (i) The Government may, by notification, ap­ point an authority hereinafter called ''the Competent authority" to exercise control over the properties attached by the Govern­ ment under Section 3. , (ii) The d~mr:etent authority sha11 have such oth~r powers as may Ge necessary for oar­ rying out the purposes of this Act· 576 THE ASSAM GAZETTE EXTRAORDINARY JULY 21 , 2oei> ' ' (iii) Upon receipt of the orders of the Gov­ ernment under Section 3, the Competent authority shall apply within fifteen days to the Court of District and Session Judge of the competent juris­ diction for making the ad-interim order of attachment absolute. (iv) An application under sub-~. ection {iii) shall be accompanied by one or more affidavits, stating the grounds on which the belief that the Financial Establishment has committed any default or is likely to defraud, js founded, the amount of money or value of other property believed to have been procured by means of the deposit, and the details, if any, of per:::.ons in whose name such property is believed to have been invested or purchased out of the deposits or any other pro­ perty attached under Section 3. CHAPTER-III Puuishment 5. for default Notwithstanding anything cont~ined in Chapter II, wrere any Financial Establisment defaults the return of the deposit or defaults the pay~ mc. nt of interest on the deposit, every person responsible for the management of the affairs of the Financial Establisment shall be punished with imprisonment for a term which may extend to ten years and with fine which extend to one lakh of rupees and such Financial Establishment is also liable for fine which may extend to one lakh of rupees. iu Repay- ment of dero~it and interests. Competent Court. CHAPTER-iV 6. (i) No Court, other than the Co.urt of Bft?ttjct and Sessions Judge shaJl have jurisdiction· in respect of any matter to which the provisions of this Act apply. (ii) Any pending ease in any other Court to which the provisions of this Act apply, shall ' tand transferred to the Court of District and Sessk ns J udge of competent jurisdiction. • ~~E ASSAM GAZETTE, EX:£~AORDINA~Y JUL~ 21, 2000 57 7 Power of the Court of the Dis­ trict and Scsaion s Judge. (iii) t 7. (i) (ii) ,. (iii-) 1 The Court of District and Sessions Judge 0n application by the Com­ _petent av.thority psss such order or issue such direction as may be nece­ ssary for the equitable distribution among ti ~c depositors of the money realised from out of the property attached· Upcn receipt of an application under Section 4·, the Court of the District and Sessions Judge shall i11sue to the Financial Establishment or to any other pason whose property is atta­ ched by the Govt rnment under Sec­ t ion 3, a notice accompanied by an application and affidavit and the evidence, if any, recorded, calling upon him to show cause on a date to be specified in the notice as to why the order of att?.chment should not be made absolute. The Court of District ?.nd Sessions Judge shall also issue such notice to all other persons represented to it as having or being likely to claim any interest or title in the property of the Financial Establishment or the pcxson to whom the notice is issued calling upon such person to appear on the same date specified in the notice and make objection if he so desires to attachment of the property or any pc;rtion thereof on the ground that he has an inte­ rest in such property or portion thereof. Any person claiming an interest in the property attaehed or any portion th.ereof may, notwithstanding that no notice has been served upon him under this section, make ~n objec­ tion as aforesaid to the Gourt of District and Sessions Judge at any time before an order is passed under sub-section (iv) or sub-section (vi). 578 THE ASSAM GAZETTE. EXTRAORDINARY' JULY 21, 2000 ------ ----·-- - - -- ------ - (iv) If 11 0 cause is shown and no r bjcctions are made c n c·r before the speci­ fied date the Court of District and Sessions Judgl:' ~ hall forthwith pass an ordc r maki­ ng tl ·e ad-interim order of attachment absdute . (v) If cause is shown c.r any objection Central Act . d c "d h c - f n· v of 190g. is ma e as a1ort.sa1 t e ourt o 1str- ict and Session Judge shall proceed to in­ vcstig::).tc the same and in so doing, as regards the examina ti0n of the parties and ·in all other respects, the Cc urt cf Distri­ ct 2.nd Sessions Judge sh2.ll, subject to the pre.visions of tt is Act, follow the procedure and exercise ?.11 the powas of a Cc urt in hearing a suit under the Code ef Civil Procedure, 1908 and any person making an objectioP shall be required to adduce evidence to shc.w that on the date of the attc:d ment he had some interest in the property attached. (vi) After investiga.tion under sub-sec­ tion (v), tbe Court of District and Sessi­ ons Judge shall pass an vrder making the ad-interim order of attachment absolute or varying it by releasing a portion c·f the property from 2.ttachment or cancelling the ad-interim order of attachment : Provided that the Court of District and Sessions Judge shall not' release from attachment any interest, which it is satis­ fied that the Financial Establishment or the person referred to in the sub-section (i ), has in the property unless it _ is also satisfied that there will remain under attachment an amount or property of value not less than the-value that is ~required for re-payment to the depositors· of such Fin· ancial Establishmc nt. .. THE ASSAM GAZETTE, EXTRAORDINARY JULY 21, 2000 57~ Attachmc~t 8. (i) Where the assets available for of properties h f F' · 1 E bl' h malalde attac ment o a 1nancia sta JS ment Traasfcrees. or other person ref erred to in Section 3 are found to be less than the amount or value which such Financial Establish­ ment is required to repay to the de­ positors and where the Court of District and Sessions Judge is satisfied by affida­ vit or otherwise that there is reasonable cause for believing that the said Finan­ cial Establishment br.s transferred (whether after the commencement of thi1 Act or not) any of the property otherwise than in good faith and for consideration the Court of District and Sessions Judge may, by notice, require any transferee of such property (whether or nor he received the property directly from the said Financial Establishment) to appear on a date to be specified in the notice and she w cause why so much of the transferee's property as is equivalent to the proper value of the property transferred should not be attached. (ii) Where the said transf erec does not appear and show cause on the speci­ fied date or where after investiga­ tic n in the manner provided in sub­ section (v) of Section 7, the Court of District and Sessions Judge is satisfied that the transfer of the property to the said transferee was not in good faith and for considera­ tion, the Court of District and Se1s~ ions Judge shall order the a ttachment of so much of the said transferee's property as is in the opinion of the Court of District and Sessions Judge equivalent to the proper value of the property transferred. S 11 ecurifty in 9. Any Financial Establiament or cuo h h b . attachmeat. person W cse property as eon or is a bout to be attached under this Act, may, at any time, apply to the Court 580THE ASSAM GAZETTE EXTRAORDINARY_ JULY 21, 2000 of District and sessions Judge for perm- 1ss1on to give security in lieu of such attachment and where the security offered and given is in the opinion of the Court of District and Session Judge satisfactory and sufficient, it may cancel the ad-in terim order of attachment or, as the case may be, refrain from passing the order of attachment. Administra- 16. The Court of District and Ses- ti on 'lf pro- • J d th }" t" f pcrty atta- s1ons u. ge I!lay, on . e app 1ca ion o cned. any person mterested m any property attached under this Act and after giving the Competent authmity an opportunity of being h.eard, make such orders as. the Court of District and Session Judge considers just and reasonable fo r - Appeal Special Public Prosecu- tor. (i) providing from such of ,the prG­ perty attached as the applicant claims, an interest in such , sums as may be reasonably necessary for the maintenance o:f the applicant and of his family and for expenses connected with the defence of the applicant where criminal proce­ edings have been instituted against him in the -Court of District and Sessions Judge ur.der Seetion 5 : . - , . (ii) safeguarding so far so may be practicable the interest of any busine ~ s affec­ ted by the attachment and par.ticularly in the interest of any partners in such business. 11. Any person including the Compe­ tent auth( rity:, if aggrieved by ::in order ( f the Court of District and Sessions judge, may appeal to the High Court within thirty days from the date cf order. 12. Government shall, by notification, app:)int an Advocate of not less than ten years standing as a Special Public Prosecu" tor for the purpos·.:- of conducting .the :ca:s:es. falling under this Act fo · the Court Of District and Session J~1dge . .. . . .. r- - THE ASSAM GA-ZETTE, EXTiRAORDINARY,JULY 21, 2000 581 Procedure 13. (1) The Gourt of District and Central Act and powers c:o. . • ~ J dg k . f 2 of 1974, ofthe court "1'.eSs1ons u e may ta . e congmzance o or Disrtjct the offence without the accused being Go- and Sessions ' · d · c ·· 1 d • t · h Judge resar-mmrtte to 1t 1or tria an lll rymg t e ding offences a.c.cused per~on, shall fallow the procedure pre.scrib.ctcL in the_ Goqe of Crimin2:1 Proce­ dure, 19;73 for the trial of warrant cases by l\Iagis rra tes. (ii) The provisions of the Code of Central Act Criminal Procedure, 19 73 shall apply to 2 oft 974, the procedings under this Act. CHAPTER-V Act t O over- 14.. Save a.§ e>therwise provided in this rioe other Act, the provisions of this Act shall have law~ . effect notwithstanding anything consistant P_,wer to make rule. therewith contained in any other law for the ti~~ being 'in force ·or any custom or usa~!' c?~. any in:~t!°~i_tien' ha~i-~g effect by virture of any such law. 15. (i) The Government may make rules for carrying out the provisions of this Act. (ii) All rules made under this Act shall be published in the Assam Gazette and unless they are expressed to come in to force on a particular day, shall come into force on the day on which they are so published. {iii) All notifications issued under this Act shall, unless they are expressed to come into force on a particular day, shall come into force on the day on which they are published. (iv) All rules made by the State Go­ vernment under this Act shall, as soon as may be after they are made, be laid be­ fore the State Legislative Assembly while it is in session, for a total period of not less than fourteen days which may be com­ prised in one session or two or more succe­ ssive sessions, and shall. unless some later 582 THE ,ASSAM GAZETTE. EXTRAORDINARY JULY 21, 2000 dat e is appointed , take · effect from the date of th~ir publicati_on in~ the Official Gazette subject to ~ such modification or . annylments as the Legislative Assembly may, during the said p'eriod agree to make so hcwever, that any .._ such modification or ~nnulment shall be. ·without prejudice to the validity of anything previously done thereunder. . 5 'I '} r _ M· K. DEKA, Secretary to the Govt . of Assam, Legislative Depal'tment G UWAHATI-Printed ~nd published by the Dy. DireCtor (Ptg. & Sty.). , · Dir~torate of Ptg. and Sty., Assam; Guwahati-21 (Eu Gazette) No . . 315-500-400-21-7-2000. 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