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THE ARUNACHAL PRADESH PROTECTION OF INTERESTS OF DEPOSITORS (IN FINANCIAL ESTABLISHMENTS) ACT, 2017
The Arunachal Pradesh Protection of Interests of Depositors (in Financial Establishments) Act, 2017
Sections
An ACT
Section 1
CHAPTER I
CHAPTER I - PRELIMINARY
Section 2Section 1(1)
Section 1Section 1(2)
Section 1Section 1(3)
Section 1Section 2. Definition
Section 2Section 2(a)
Section 2Section 2(b)
Section 2Section 2(b)(i)
Section 2Section 2(b)(ii)
Section 2Section 2(b)(iii)
Section 2Section 2(b)(iv)
Section 2Section 2(b)(v)
Section 2Section 2(b)(vi)
Section 2Explanation-I to Section 2(b)
Section 2Explanation-II to Section 2(b)
Section 2Section 2(c)
Section 2Section 2(d)
Section 2Section 2(e)
Section 2Section 2(f)
Section 2Section 2(g)
Section 2Section 2(h)
Section 2Section 2(i)
Section 2Section 2(j)
Section 2Section 2(k)
Section 2Section 2(l)
Section 2
CHAPTER II
CHAPTER II - FRAUDULENT FINANCIAL ESTABLISHMENT
Section 27Section 3(i)
Section 3Section 3(ii)
Section 3Explanation-1 to Section 3
Section 3Explanation-2 to Section 3
Section 3Section 4(1)
Section 4Section 4(2)
Section 4Section 4(3)
Section 4Section 4(4)
Section 4Section 4(5)
Section 4Section 4(6)
Section 4Section 4(7)
Section 4Section 5. Offences to be cognizable and non-bailable
Section 5Section 6(1)
Section 6Section 6(2)
Section 6Section 6(3)
Section 6Section 6(4)
Section 6
CHAPTER III
CHAPTER III - PUNISHMENT FOR DEFAULT IN REPAYMENT OF DEPOSIT AND INTEREST
Section 44Section 7
Section 7Proviso to Section 7
Section 7Explanation-I to Section 7
Section 7Explanation-II to Section 7
Section 7Section 8(1)(a)
Section 8Section 8(1)(b)
Section 8Section 8(1)(c)
Section 8Section 8(2)
Section 8Section 8(3)
Section 8Section 8(4)
Section 8Section 8(5)
Section 8Section 8(6)
Section 8Section 8(7)
Section 8Proviso to Section 8(7)
Section 8Section 8(8)
Section 8Section 8(9)
Section 8Section 8(10)
Section 8Section 8(11)
Section 8
CHAPTER IV
CHAPTER IV - COMPETENT COURT
Section 63Section 9(1)
Section 9Section 9(2)
Section 9Section 9(3)
Section 9Section 9(4)
Section 9Section 9(5)
Section 9Section 10. Powers of the Court
Section 10Section 10(2)
Section 10Section 10(3)
Section 10Section 10(4)
Section 10Section 10(5)
Section 10Section 10(6)
Section 10Proviso 1 to Section 10(6)
Section 10Proviso 2 to Section 10(6)
Section 10Section 10(7)
Section 10Section 11. Attachment of properties of malafide transferees
Section 11Section 11(2)
Section 11Section 12. Security in lieu of attachment
Section 12Section 13. Administration of property attached
Section 13Section 14. Appeal
Section 14Section 15. Special Public Prosecutor
Section 15Section 16. Procedure and powers of the Court of District and Sessions Judge regarding offences
Section 16Section 16(2)
Section 16
CHAPTER V
CHAPTER V - ACT TO OVERRIDE OTHER LAWS
Section 86Section 18. Protection of action taken in good faith
Section 18Section 19. Power to remove difficulties
Section 19Section 20(1)
Section 20Section 20(2)
Section 20
arunachal-pradesh-protection-of-interests-of-depositors-in-financial-establishments-act-2017.json
•
90 Sections
•
Arunachal Pradesh
{
"id": 2419,
"slug": "arunachal-pradesh-protection-of-interests-of-depositors-in-financial-establishments-act-2017",
"title": "THE ARUNACHAL PRADESH PROTECTION OF INTERESTS OF DEPOSITORS (IN FINANCIAL ESTABLISHMENTS) ACT, 2017",
"short_title": "The Arunachal Pradesh Protection of Interests of Depositors (in Financial Establishments) Act, 2017",
"act_number": "10",
"act_year": 2017,
"act_type": "STATE",
"location": "Arunachal Pradesh",
"law_status": "unknown",
"enactment_date": "2017-09-27",
"description": "The Arunachal Pradesh Protection of Interests of Depositors (in Financial Establishments) Act, 2017",
"preamble": "",
"section_label": "Section",
"sections": [
{
"number": "1",
"title": "An ACT",
"chapter": null,
"content": "An\nAct\nto protect the deposits made by the public in the Financial Establishment and matters\nconnected therewith and incidental thereto.\nBe it enacted by the Arunachal Pradesh Legislative Assembly in the Sixty eighth Year of\nthe Republic of India as follows:",
"footnote": "",
"is_definition": false,
"sort_order": 0
},
{
"number": "2",
"title": "CHAPTER I - PRELIMINARY",
"chapter": "CHAPTER I",
"content": "CHAPTER-I\nShort title, extent and commencement:",
"footnote": "",
"is_definition": false,
"sort_order": 10
},
{
"number": "1",
"title": "Section 1(1)",
"chapter": null,
"content": "1. (1) This Act may be called the Arunachal Pradesh Protection of interests of Depositors\n(in Financial Establishment) Act, 2017.",
"footnote": "",
"is_definition": false,
"sort_order": 20
},
{
"number": "1",
"title": "Section 1(2)",
"chapter": null,
"content": "(2)\nIt extends to the whole of Arunachal Pradesh.",
"footnote": "",
"is_definition": false,
"sort_order": 30
},
{
"number": "1",
"title": "Section 1(3)",
"chapter": null,
"content": "(3) It shall come into force on the date of its publication in the Official Gazette.",
"footnote": "",
"is_definition": false,
"sort_order": 40
},
{
"number": "2",
"title": "Section 2. Definition",
"chapter": null,
"content": "Definition:\n2. In this Act, unless the context other wise requires.",
"footnote": "",
"is_definition": true,
"sort_order": 50
},
{
"number": "2",
"title": "Section 2(a)",
"chapter": null,
"content": "(a)\n\"Competent Authority\" means the Authority appointed by the Government under\nsection 6.",
"footnote": "",
"is_definition": true,
"sort_order": 60
},
{
"number": "2",
"title": "Section 2(b)",
"chapter": null,
"content": "(b)\n\"Deposit\" means and shall be deemed always to have included any receipt of\nMoney or acceptance of any valuable commodity by any Financial Establishment\nto be returned after a specified period of time or otherwise, either in cash or in\nkind or any form of a specified service with or without any benefit in the form of\ninterest, bonus, Profit or any other form but does not include :-",
"footnote": "",
"is_definition": true,
"sort_order": 70
},
{
"number": "2",
"title": "Section 2(b)(i)",
"chapter": null,
"content": "(i) amount raised by way of share capital or by way of debenture, bond or any other\ninstrument covered under the guidelines given and regulations made, by the\nSecurities and Exchange Board of India, established under the Securities and\nExchange Board of India Act, 1992;",
"footnote": "",
"is_definition": true,
"sort_order": 80
},
{
"number": "2",
"title": "Section 2(b)(ii)",
"chapter": null,
"content": "(ii) amounts contributed as capital by partners of a firm;",
"footnote": "",
"is_definition": true,
"sort_order": 90
},
{
"number": "2",
"title": "Section 2(b)(iii)",
"chapter": null,
"content": "(iii) amounts received from a Scheduled Bank or a Co-operative Bank or any other\nBanking Company as defined in clause (c) of section 5 of the Banking Regulation\nAct, 1949;",
"footnote": "",
"is_definition": true,
"sort_order": 100
},
{
"number": "2",
"title": "Section 2(b)(iv)",
"chapter": null,
"content": "(iv) any amount received from:\n(a)\nthe Industrial Development Bank of India.\n(b)\na State Financial Corporation.\n(c)\nany financial institution specified in or under section 4 A of the Companies\nAct, 1956 or\n(d)\nany other institution that may be specified by notification by the Government\nin this behalf; or",
"footnote": "",
"is_definition": true,
"sort_order": 110
},
{
"number": "2",
"title": "Section 2(b)(v)",
"chapter": null,
"content": "(e)\nany amount received in the ordinary course of business by way of\n(i)\nsecurity deposit\n(\nii)\ndealership deposit\n(iii)\nearnest money\n(iv)\nadvance against order for goods or services\n(v)\nany amount receive from an individual or a firm or an association of\nindividuals registered under any enactment relating to money lending\nwhich is for the time being in force in the State of Arunachal Pradesh;\nand",
"footnote": "",
"is_definition": true,
"sort_order": 120
},
{
"number": "2",
"title": "Section 2(b)(vi)",
"chapter": null,
"content": "(vi) any amount received by subscription in respect of chit.",
"footnote": "",
"is_definition": true,
"sort_order": 130
},
{
"number": "2",
"title": "Explanation-I to Section 2(b)",
"chapter": null,
"content": "Explanation-l:\n\"Chit\" has same meaning as assigned to it in clause (b) of section 2 of Chit Funds Act,\n1982;",
"footnote": "",
"is_definition": false,
"sort_order": 140
},
{
"number": "2",
"title": "Explanation-II to Section 2(b)",
"chapter": null,
"content": "Explanation-II.\nAny credit given by a seller to a buyer on the sale of any property (whether movable or\nimmovable) shall not be deemed to be deposit for the purpose of this clause;",
"footnote": "",
"is_definition": false,
"sort_order": 150
},
{
"number": "2",
"title": "Section 2(c)",
"chapter": null,
"content": "(c) \"Financial Establishment\" means an individual or an association of individuals or\na firm, or a company registered under the Companies Act, 1956 and carrying on\nthe business of receiving deposits under any scheme or arrangement or in\nanother manner and includes the Non Banking Financial Companies (NBFC) as\ndefined in section 45 1 (c) and (f) of the Reserve Bank of India Act 1934, but\ndoes not include a Corporation or a co-operative society owned or controlled by\nany States Government or the Central Government, or a banking company as\ndefined under section 5 (c) of the Banking Regulation Act, 1949.",
"footnote": "1956; 1934; 1949",
"is_definition": true,
"sort_order": 160
},
{
"number": "2",
"title": "Section 2(d)",
"chapter": null,
"content": "(d) \"Depositor\" means a person who has made deposits with Financial Establishment;",
"footnote": "",
"is_definition": true,
"sort_order": 170
},
{
"number": "2",
"title": "Section 2(e)",
"chapter": null,
"content": "(e)\n\"Government\" means the State Government of Arunachal Pradesh;",
"footnote": "",
"is_definition": true,
"sort_order": 180
},
{
"number": "2",
"title": "Section 2(f)",
"chapter": null,
"content": "(f)\n\"any other officer authorized by Government in order to carry out the purposes of\nthis Act\" means an officer empowered by the Government, by notification in the\nOfficial Gazette, in order to carry out the purposes of this Act;",
"footnote": "",
"is_definition": true,
"sort_order": 190
},
{
"number": "2",
"title": "Section 2(g)",
"chapter": null,
"content": "(g)\n\"the Deputy Commissioner\" means the Deputy Commissioner of the District;",
"footnote": "",
"is_definition": true,
"sort_order": 200
},
{
"number": "2",
"title": "Section 2(h)",
"chapter": null,
"content": "(h)\n\"the Superintendent of Police of the District\" means the senior most police officer\nin-charge of the police District and shall be deemed to have included his sub-\nordinate officers;",
"footnote": "",
"is_definition": true,
"sort_order": 210
},
{
"number": "2",
"title": "Section 2(i)",
"chapter": null,
"content": "(i) \"the Bureau of Investigation (Economic Officers)\" means the Bureau of\ninvestigation (Economic Offences) under the Government of Arunachal Pradesh;",
"footnote": "",
"is_definition": true,
"sort_order": 220
},
{
"number": "2",
"title": "Section 2(j)",
"chapter": null,
"content": "(j) \"Competent Regulatory authority\" means and includes Reserve Bank of India\n(RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory\nand Development Authority (IRDA), Registrar of Companies (RoC), Registrar of\nCooperative Societies, Govemment of Arunachal Pradesh or any other Authority\nempowered by the Central or State Government from time to time by a notification\nin the Official Gazette;",
"footnote": "",
"is_definition": true,
"sort_order": 230
},
{
"number": "2",
"title": "Section 2(k)",
"chapter": null,
"content": "(k) \"Special Court\" means the Court of District and Session Judge of Competent\nJurisdiction or the Special Court constituted under this Act\".",
"footnote": "",
"is_definition": true,
"sort_order": 240
},
{
"number": "2",
"title": "Section 2(l)",
"chapter": null,
"content": "(1) \"prescribed\" means prescribed by rules made under this Act.",
"footnote": "",
"is_definition": true,
"sort_order": 250
},
{
"number": "27",
"title": "CHAPTER II - FRAUDULENT FINANCIAL ESTABLISHMENT",
"chapter": "CHAPTER II",
"content": "CHAPTER-II\nFraudulent Financial Establishment",
"footnote": "",
"is_definition": false,
"sort_order": 260
},
{
"number": "3",
"title": "Section 3(i)",
"chapter": null,
"content": "3. Notwithstanding anything contained in any other law for the time being in force,\n(i) Where, upon complaint received from a number of depositors that any Financial\nEstablishment default the return of deposit after maturity or fails to pay interest on deposit\nor fails to provide the service for which deposit has been made, or any report from the\nDeputy Commissioner or an officer not below the rank of Superintendent of Police of the\nBureau of investigation (Economic Offences) of the respective jurisdiction or otherwise,\nthat any Financial Establishment has-\n(a) received deposits from public by indulging in a fraudulent act; or\n(b) failed to return the deposit after maturity or on demand by depositors; or\n(c) failed in payment of interest on deposit or other assured benefit; or\n(d) failed to provide the service against such deposit; and/or",
"footnote": "",
"is_definition": false,
"sort_order": 270
},
{
"number": "3",
"title": "Section 3(ii)",
"chapter": null,
"content": "(ii) Where the Government has reason to believe that any Financial Establishment is\nacting in a calculated manner with an intention to defraud the depositors, and if the Government\nis satisfied that such Financial Establishment is not likely to return the deposits or to make\npayment of interest or to provide the service, the Government may, in order to protect the\ninterest of the depositors of such Financial Establishment pass an ad-interim order by\npublishing it in the Official Gazette, attaching the money or other property alleged to have\nbeen procured either in the name of the Financial Establishment, or in the name of any\nother person from and out of the deposits collected by the Financial Establishment, or if it\nis transpires that such money or other property is not available for attachment or not\nsufficient for repayment of the deposits, such other property of the said Financial\nEstablishment or the promoter, manager or member of the said Financial Establishment, or\na person who has borrowed money from the Financial Establishment to the extent of his\ndefault or such other properties of that person in whose name the properties where purchased\nfrom and out of the deposit collected by the Financial Establishment, as the Government\nmay think fit, transfer the control over the said money or property to the competent authority.",
"footnote": "",
"is_definition": false,
"sort_order": 280
},
{
"number": "3",
"title": "Explanation-1 to Section 3",
"chapter": null,
"content": "Explanation-l:- For the purposes of clause (i) any Financial Establishment receiving deposits\nfrom public in violation of any law for the time being in force or without valid registration/\nlicense/permission from a competent Regulatory Authority or which dresses, Camouflages\nits deposit taking in the form of any other business or activity shall be deemed to be indulging\nin fraudulent act.",
"footnote": "",
"is_definition": false,
"sort_order": 290
},
{
"number": "3",
"title": "Explanation-2 to Section 3",
"chapter": null,
"content": "Explanation-2:- the expression \"Government\" for the purpose of this section shall mean\nand include the Finance Department of the Government of Arunachal Pradesh\".",
"footnote": "",
"is_definition": false,
"sort_order": 300
},
{
"number": "4",
"title": "Section 4(1)",
"chapter": null,
"content": "4. Authority to receive complaint and cause enquiry and investigation:\n(1) Notwithstanding anything contained in section 3, any person or public in general\naggrieved against any Financial Establishment receiving deposits from Public may file a\ncomplaint in writing specifically mentioning the nature of allegations against the Financial\nEstablishment before :-\n(i) the Deputy Commissioner or any officer not below the rank of the Superintendent\nof police of the Bureau of Investigation (Economic Offences) of the respective\nJurisdiction, who shall be competent to receive the complaint and cause enquiry\nand or Investigation of the complaints so received in respect of any fraudulent act\nas referred to under sub-section (i) of section 3.\n(ii) An officer not below the rank of Circle Officer of the concerned Revenue Circle,\nthe Superintendent of Police of the District or the Officer-in-Charge of the Police\nstation concerned, as the case may be shall forward the compliant to the Deputy\nCommissioner of the District within seven days of the receipt of the complaint.",
"footnote": "",
"is_definition": false,
"sort_order": 310
},
{
"number": "4",
"title": "Section 4(2)",
"chapter": null,
"content": "(2) Notwithstanding anything contained in section 3 and clause (ii) of sub-section (1)\nof this section, the Circle Officer of the Revenue Circle or the Superintendent of police of\nthe District or the Officer-in-Charge of the police station within their respective Jurisdiction,\nmay suo-moto file a complaint with the Deputy Commissioner against any Financial\nEstablishment which according to information received by him has committed any one or\nmore of the acts mentioned under sub-section (i) of section 3.",
"footnote": "",
"is_definition": false,
"sort_order": 320
},
{
"number": "4",
"title": "Section 4(3)",
"chapter": null,
"content": "(3) On receipt of the complaints, the Deputy Commissioner may make such further\nenquiry/enquiries as may be necessary within his jurisdiction or outside his jurisdiction with\nthe assistance of the District Administration of the concerned District for the purpose of arriving\nat a conclusion with respect to the complaint made against the Financial Establishment.",
"footnote": "",
"is_definition": false,
"sort_order": 330
},
{
"number": "4",
"title": "Section 4(4)",
"chapter": null,
"content": "(4) In making such enquiries, the Deputy Commissioner may take necessary assistance\nof an officer sub-ordinate to him for the purpose of preparation of the enquiry report.",
"footnote": "",
"is_definition": false,
"sort_order": 340
},
{
"number": "4",
"title": "Section 4(5)",
"chapter": null,
"content": "(5) the Deputy commissioner or an officer not below the rank of Superintendent of\nPolice of the Bureau of Investigation (Economic Offences) shall forward his report together\nwith the complaint to the Government in all cases within 90 (ninety) days from the date of\nreceipt of the complaint.",
"footnote": "",
"is_definition": false,
"sort_order": 350
},
{
"number": "4",
"title": "Section 4(6)",
"chapter": null,
"content": "(6) Notwithstanding anything contained in sections 3 and 4, the Deputy Commissioner\nof the concerned District, on receipt of information against any Financial Establishment as\nregard commission of any fraudulent activities as mentioned in clause (i) of section 3, may\nsuo-moto, cause an enquiry and/or investigation of such fraudulent activities and submit a\nreport to the Government for necessary action.",
"footnote": "",
"is_definition": false,
"sort_order": 360
},
{
"number": "4",
"title": "Section 4(7)",
"chapter": null,
"content": "(7) Notwithstanding anything contained in sections 3 and 4, the Government may suo-\nmoto or on receipt of any complaint under clause (i) of section 3 may cause enquiry and/or\ninvestigation into the complaint by the Deputy Commissioner of the concerned District or\ncause enquiry and/or investigation into the complaint or fraudulent transaction referred to\nin sub-section (i) of section 3 through the Bureau of investigation (Economic Offences) or\nthrough any other investigation Agency.",
"footnote": "",
"is_definition": false,
"sort_order": 370
},
{
"number": "5",
"title": "Section 5. Offences to be cognizable and non-bailable",
"chapter": null,
"content": "Offences to be cognizable and non-bailable:\n5.. Any offence committed under this Act shall be cognizable and non-bailable within the\nmeaning of the code of Criminal procedure, 1973.",
"footnote": "1973",
"is_definition": false,
"sort_order": 380
},
{
"number": "6",
"title": "Section 6(1)",
"chapter": null,
"content": "6. Competent Authority:\n(1) The Government may, by notification, appoint an authority hereinafter called \"the\nCompetent Authority\" to exercise control over the properties attached by the Government\nunder Section 3.",
"footnote": "",
"is_definition": false,
"sort_order": 390
},
{
"number": "6",
"title": "Section 6(2)",
"chapter": null,
"content": "(2) The competent authority shall have such other powers as may be necessary for\ncarrying out the purpose of this Act.",
"footnote": "",
"is_definition": false,
"sort_order": 400
},
{
"number": "6",
"title": "Section 6(3)",
"chapter": null,
"content": "(3) Upon receipt of the order of the Government under section 3, the competent authority\nshall apply within 15 days to the Designated Court constituted under this Act for making\nthe ad-interim order of attachment absolute and for a direction to sell the property so attached\nby public auction and realize the sale proceeds. For the purpose of crediting and dealing with\nthe money realized by Competent Authority he shall open an account in any Scheduled Bank.",
"footnote": "",
"is_definition": false,
"sort_order": 410
},
{
"number": "6",
"title": "Section 6(4)",
"chapter": null,
"content": "(4) An application under sub-section (3) shall be accompanied by one or more affidavits,\nstating the grounds on which the belief that the Financial Establishment has committed any\ndefault or is likely to defraud, is established, the amount of money or value of other property\nbelieved to have been procured by means of the deposit, and the details if any of persons\nin whose name such property is believed have been invested or purchased to out of the\ndeposits or any other property attached under section 3.",
"footnote": "",
"is_definition": false,
"sort_order": 420
},
{
"number": "44",
"title": "CHAPTER III - PUNISHMENT FOR DEFAULT IN REPAYMENT OF DEPOSIT AND INTEREST",
"chapter": "CHAPTER III",
"content": "CHAPTER-III\nPunishment for default in repayment of deposit and interest",
"footnote": "",
"is_definition": false,
"sort_order": 430
},
{
"number": "7",
"title": "Section 7",
"chapter": null,
"content": "7. Notwithstanding anything contained in Chapter II, any Financial establishment which,-\n(i) defaults in repayment of deposit on maturity along with any benefit in the form of\ninterest bonus, profit or in any other form as promised; or\n(ii)\nfails to render service as assured, against the deposit; or\n(iii)\nis found indulging in a fraudulent act during business operation, every person including\nthe promoter partner, director, manager or any other person or an employee\nresponsible for the management or conduct of the business or affairs of such\nFinancial Establishment or any person abetting the commission of such acts by the\nFinancial Establishment shall, on conviction, be punished with imprisonment for a\nterm which may extend to ten years and with fine which may extend to five lakh\nrupees and such Financial Establishment shall also be liable for a fine which may\nextend to five lakh rupees.;",
"footnote": "",
"is_definition": false,
"sort_order": 440
},
{
"number": "7",
"title": "Proviso to Section 7",
"chapter": null,
"content": "Provided that in the absence of special and adequate reasons recorded in the judgment\nof the Court, the imprisonment shall not be less than 5 years and the fine shall not be less\nthan two lakh rupees.",
"footnote": "",
"is_definition": false,
"sort_order": 450
},
{
"number": "7",
"title": "Explanation-I to Section 7",
"chapter": null,
"content": "Explanation-I: For the purposes of this section, a Financial Establishment shall be deemed\nto have committed a default fraudulently or failed to render specific service fraudulently, if it,-\n(i) Commits default in repayment of such deposit with such benefit in the form of interest,\nbonus, profit or in any other form as promised or fails to render any specified\nservice promised against such deposit; or\n(ii)\nfails to render any specific service agreed against the deposit with an intention of\ncausing wrongful gain to one person or wrongful loss to another person; or\n(iii)\ncommits such defaults due to its inability arising out of impracticable or commercially\nnot viable promises made while accepting such deposit or arising out of deployment\nof money or assets acquired out of the deposits in such a manner as it involves\ninherent risk in recovery of the same when needed; or\n(iv) commits a fraudulent act as mentioned in Explanation 1, of section 3;",
"footnote": "",
"is_definition": false,
"sort_order": 460
},
{
"number": "7",
"title": "Explanation-II to Section 7",
"chapter": null,
"content": "Explanation-II:- For the purpose of this section any financial Establishment shall be deemed\nto be indulging in fraudulent act, if it receives deposits from the public in the manner as\nmentioned in explanation 1 of section 3.",
"footnote": "",
"is_definition": false,
"sort_order": 470
},
{
"number": "8",
"title": "Section 8(1)(a)",
"chapter": null,
"content": "Mandatory disclosure and punishment for non-compliance:\n8. (1) (a) Before starting operation in the State of Arunachal Pradesh, every Financial\nEstablishment shall intimate the Deputy Commissioner of the District about the details of its\nbusiness under his local jurisdiction indicating, with supporting documents, the registration/\npermission/sanctions obtained from the authorities like the Securities and Exchange Board\nof India (SEBI) or the Reserve Bank of India (RBI) or any other Competent Regulatory\nauthority of Central or State Government required under the relevant law for the time being\nin force in such form and in such manner, as may be prescribed by the State Government\nand obtain No objection certificate thereto.",
"footnote": "",
"is_definition": false,
"sort_order": 480
},
{
"number": "8",
"title": "Section 8(1)(b)",
"chapter": null,
"content": "(b) While giving his No Objection Certificate under clause (a) of sub-section (1), the\nDeputy Commissioner, inter alia, shall satisfy himself on the adequacy of the capital base of\nthe Financial Establishment, its business model and sustainability of its business. For the\npurpose of satisfying himself regarding capital adequacy of the Financial Establishment, the\nDeputy Commissioner may call for any other document which he, in his judgment, considers\nnecessary for arriving at an objective conclusion.",
"footnote": "",
"is_definition": false,
"sort_order": 490
},
{
"number": "8",
"title": "Section 8(1)(c)",
"chapter": null,
"content": "(c) Before giving his No-Objection Certificate under clause (a) of sub-section (1), the\nDeputy Commissioner shall collect a report from the Superintendent of Police having\njurisdiction for this purpose. The Superintendent of Police shall cause such enquiries/\nverifications of the Financial Establishment and the persons associated with it in order to\nascertain their genuineness or otherwise, previous criminal conduct or acts, if any, and\nparameters relevant thereto as per existing laws.",
"footnote": "",
"is_definition": false,
"sort_order": 500
},
{
"number": "8",
"title": "Section 8(2)",
"chapter": null,
"content": "(2) Before starting operation in Arunachal Pradesh, every Financial Establishment\nincluding those operating on-line through internet or any other electronic/print media or any\nother means, shall obtain a trade license from the competent Local Body/Authority under\nwhose local jurisdiction the establishment intends to conduct its business operations and no\nLocal Body/Authority shall issue such trade license to the Financial Establishment without\nreceipt of the No Objection Certificate as per sub-section (1) from the Deputy Commissioner\nof that particular District within which the Local Authority is empowered.",
"footnote": "",
"is_definition": false,
"sort_order": 510
},
{
"number": "8",
"title": "Section 8(3)",
"chapter": null,
"content": "(3) In case of any existing Financial Establishment as on the date of enactment of this\nAct, the details mentioned in clause (a) of sub-section (1) shall be intimated to the Deputy\nCommissioner of the concerned District where the Financial Establishment has been\nperforming its business operation within 30 days of the commencement of this Act and the\nrequirements under clause (b) of sub- sections (1) and (2) shall be complied with.",
"footnote": "",
"is_definition": false,
"sort_order": 520
},
{
"number": "8",
"title": "Section 8(4)",
"chapter": null,
"content": "(4) Every Financial Establishment shall file a monthly statement about its business\ntransaction in that local area in such form and in such manner, as may be prescribed to the\nDeputy Commissioner of the District under whose local jurisdiction the Financial Establishment\nis conducting its business operations along with a copy of the periodical statement which is\nfiled to the SEBI or, as the case may be, RBI or any other competent Regulatory Authority of\nCentral or State Government..",
"footnote": "",
"is_definition": false,
"sort_order": 530
},
{
"number": "8",
"title": "Section 8(5)",
"chapter": null,
"content": "(5) The Deputy Commissioner of the District under whose local jurisdiction of Financial\nEstablishment is conducting its business operations or any other officer authorized by the\nGovernment may, at any time, direct any Financial Establishment carrying on business in the\narea of jurisdiction of the Competent Authority to furnish in such form, such information relating\nto or connected with the deposits received by it, as may be specified in a general or a special\norder.",
"footnote": "",
"is_definition": false,
"sort_order": 540
},
{
"number": "8",
"title": "Section 8(6)",
"chapter": null,
"content": "(6) The Deputy Commissioner of the District under whose local jurisdiction the Financial\nEstablishment is conducting its business operations or any other officer authorized by the\nDeputy Commissioner on his behalf or any other officer authorized by the Government in\norder to carry out the purposes of this Act shall have power to visit the office premises or\nother places of any Financial Establishment operating in the State to check the books of\naccount and other documents to ensure that the business of deposit taking is being conducted\nas per relevant law with permission or sanction of the authority empowered by that law or that\nsuch business is not dressed in any form for misleading or cheating the depositors.",
"footnote": "",
"is_definition": false,
"sort_order": 550
},
{
"number": "8",
"title": "Section 8(7)",
"chapter": null,
"content": "(7) The Deputy Commissioner of the District under whose local jurisdiction the Financial\nEstablishment is conducting its business operations or any other officer authorized by the\nDeputy Commissioner on his behalf or any other officer authorized by the Government in\norder to carry out the purposes of this Act shall have power to enter and search any premise\nwhere they have the reason to believe that any register, book, record, paper, application,\ninformation in electronic storage and retrieval device or medium, instrument or proceedings\nare kept and to inspect them and to take such notes and extracts as they may deem\nnecessary. Every person having in his custody or maintaining such register, book, record,\npaper, application, or information, or instrument, or proceding shall permit the Competent\nAuthority or any other officer authorized by the Government to inspect them and to take\nnotes and extracts as they may deem necessary and if necessary seize and impound\nthem;",
"footnote": "",
"is_definition": false,
"sort_order": 560
},
{
"number": "8",
"title": "Proviso to Section 8(7)",
"chapter": null,
"content": "Provided that no residential accommodation (not being a place of business -cum-\nresidence) shall be so entered and searched except on the authority of a search warrant\nissued by a Magistrate having jurisdiction over the area, and all searches under this section,\nso far as may be, made in accordance with the provisions of the Code of the Criminal\nProcedure, 1973.",
"footnote": "1973",
"is_definition": false,
"sort_order": 570
},
{
"number": "8",
"title": "Section 8(8)",
"chapter": null,
"content": "(8) For failure to furnish the information or statement under sub-sections (1), (2), ?? (3)\nor furnishing a wrong or misleading statement, or refusal to produce or permit inspection of\nrecords/documents, etc, as required under sub-sections (6) and (7), the Deputy Commissioner\nof the District under whose local jurisdiction the Financial Establishment is conducting its\nbusiness operations, if satisfied, may after giving reasonable opportunity to the Financial\nEstablishment in accordance with law, impose a fine of rupees one lakh for every such\ndefault to be deposited within a period of one month.",
"footnote": "",
"is_definition": false,
"sort_order": 580
},
{
"number": "8",
"title": "Section 8(9)",
"chapter": null,
"content": "(9) In order to prevent continuation of such fraudulent act or default or non-cooperation\nat the time of inspection with reference to the foregoing provisions or on detection by the\ninspecting officer that such business is not being conducted as per relevant law with permission\nor sanction of the authority empowered by that law or such business is dressed in any form\nfor misleading or cheating the depositors, the Government, based on the report of the Deputy\nCommissioner of the District may, pass such interim order as if may consider appropriate to\nrestrain that establishment from operating in that area, freeze the bank accounts and restrain\nit from sale, transfer or alter any moveable or immoveable property of that establishment\npending confirmation by the Competent Court after making an application by the Competent\nAuthority under sub-section (3) of section 6.",
"footnote": "",
"is_definition": false,
"sort_order": 590
},
{
"number": "8",
"title": "Section 8(10)",
"chapter": null,
"content": "(10) The fine money imposed under sub-section (8) if not paid within the time fixed in\nthe order may be recovered as an arrear of land revenue.",
"footnote": "",
"is_definition": false,
"sort_order": 600
},
{
"number": "8",
"title": "Section 8(11)",
"chapter": null,
"content": "(11) Any Financial Establishment, aggrieved by the order of the Government, may file\nappeal before the Competent Court while hearing the application made by the Competent\nAuthority under sub-section (3) of section 6 of this Act. Such appeal filed by the aggrieved\nFinancial Establishment shall be heard by Competent Court under sub-section (3) of the\nsection 6 of this Act while deciding the matter of interim order of attachment made by\nGovernment under sections 3 and sub-section (9) of section 8 of this Act.",
"footnote": "",
"is_definition": false,
"sort_order": 610
},
{
"number": "63",
"title": "CHAPTER IV - COMPETENT COURT",
"chapter": "CHAPTER IV",
"content": "CHAPTER-IV\nCompetent Court:",
"footnote": "",
"is_definition": false,
"sort_order": 620
},
{
"number": "9",
"title": "Section 9(1)",
"chapter": null,
"content": "9. (1) No Court, other than the Court of District and Sessions Judge of Competent\nJurisdiction or the Special Court constituted under this Act shall have jurisdiction in respect of\nany matter to which the provisions of this Act apply.",
"footnote": "",
"is_definition": false,
"sort_order": 630
},
{
"number": "9",
"title": "Section 9(2)",
"chapter": null,
"content": "(2) For the purpose of speedy disposal of cases under this Act, the Government may,\nwith the concurrence of the Chief Justice of the Gauhati High Court, by notification, constitute\none or more Special Courts consisting of a single Judge not below the rank of a District and\nSessions Judge or Additional District and Sessions judge for such area or areas or for such\nclass or classes of cases as may be specified in the notification.",
"footnote": "",
"is_definition": false,
"sort_order": 640
},
{
"number": "9",
"title": "Section 9(3)",
"chapter": null,
"content": "(3) While trying cases by the Special Court under this Act, it shall exercise the powers,\nfunctions and jurisdiction as are available to a District and Sessions Judge of the competent\njurisdiction.",
"footnote": "",
"is_definition": false,
"sort_order": 650
},
{
"number": "9",
"title": "Section 9(4)",
"chapter": null,
"content": "(4) Any pending case in any other Court to which the provisions of this Act apply, shall\nstand transferred to the court of District and Sessions Judge of Competent Jurisdiction or the\nSpecial Court constituted under this Act.",
"footnote": "",
"is_definition": false,
"sort_order": 660
},
{
"number": "9",
"title": "Section 9(5)",
"chapter": null,
"content": "(5) The District and Sessions judge of Competent Jurisdiction or the Special Court\nconstituted under this Act on application by the Competent Authority shall pass such order or\nissue such direction as may be necessary for the equitable distribution among the depositors\nof the money realized from and out of the property attached.",
"footnote": "",
"is_definition": false,
"sort_order": 670
},
{
"number": "10",
"title": "Section 10. Powers of the Court",
"chapter": null,
"content": "Powers of the Court:\n10.(1) Upon receipt of an application under section 6 the District and Sessions Judge of\nCompetent Jurisdiction or the special Court constituted under this Act shall issue to the\nFinancial Establishment or to any other person whose property is attached by the Government\nunder section 3, a notice accompanied by an application and affidavit and the evidence, if\nany, recorded, calling upon him to show cause on a date to be specified in the notice as to\nwhy the order of attachment should not be made absolute.",
"footnote": "",
"is_definition": false,
"sort_order": 680
},
{
"number": "10",
"title": "Section 10(2)",
"chapter": null,
"content": "(2) The Court of District and Sessions Judge of Competent Jurisdiction or the Special\nCourt constituted under this Act shall also issue such Notice to all other persons representing\nit as having or being likely to claim any interest or title in the property of the Financial\nEstablishment or person to whom the notice is issued calling upon such person to appear\non the same date specified in the notice and make objection if he so desires to attachment of\nthe property or any portion thereof on the ground that he has an interest in such property or\nportion thereof.",
"footnote": "",
"is_definition": false,
"sort_order": 690
},
{
"number": "10",
"title": "Section 10(3)",
"chapter": null,
"content": "(3) Any person claiming an interest in the property attached or any portion thereof may,\nnotwithstanding that no notice has been served upon him under this section, make an objection\nas aforesaid to the Court of District and Sessions Judge of Competent Jurisdiction or the\nSpecial Court constituted under this Act at any time before an order is passed under sub-\nsection (4) or sub-section (6).",
"footnote": "",
"is_definition": false,
"sort_order": 700
},
{
"number": "10",
"title": "Section 10(4)",
"chapter": null,
"content": "(4) If no cause is shown and no objections are made on or before the specified date the\nCourt of District and Sessions Judge of Competent Jurisdiction or the special Court constituted\nunder this Act shall forthwith pass an order making the ad-interim order of attachment\nabsolute.",
"footnote": "",
"is_definition": false,
"sort_order": 710
},
{
"number": "10",
"title": "Section 10(5)",
"chapter": null,
"content": "(5) If cause is shown or any objection is made as aforesaid the Court of District and\nSessions Judge of competent Jurisdiction or the Special Court constituted under this Act\nshall proceed to investigate the same and in so doing, as regards the examination of the\nparties and in all other respects, the Court of District and Sessions Judge of Competent\nJurisdiction or the Special Court constituted under this Act shall, subject to the provisions of\nthis Act, follow the procedure and exercise all the powers of a Court in hearing a suit under\nthe Code of Civil procedure, 1908 and any person making an objection shall be required to\nadduce evidence to show that on the date of attachment he had some interest in the property\nattached.",
"footnote": "1908",
"is_definition": false,
"sort_order": 720
},
{
"number": "10",
"title": "Section 10(6)",
"chapter": null,
"content": "(6) After investigation under sub-section (5), the District and Sessions Judge or the\nSpecial Court shall pass an order making the ad- interim order of attachment absolute or\nvarying it by releasing a portion of the property from attachment or cancelling the ad-interim\norder of attachment.",
"footnote": "",
"is_definition": false,
"sort_order": 730
},
{
"number": "10",
"title": "Proviso 1 to Section 10(6)",
"chapter": null,
"content": "Provided that the Court of District and Sessions Judge of Competent Jurisdiction or the\nSpecial Court constituted under this Act shall not release from attachment, any interest,\nwhich it is satisfied that the Financial Establishment or the person referred to in the Sub-\nsection (1) has in the property unless it is also satisfied that it will remain under attachment\nan amount or property of value not less than the value that is required for repayment to the\ndepositors of such Financial Establishment.",
"footnote": "",
"is_definition": false,
"sort_order": 740
},
{
"number": "10",
"title": "Proviso 2 to Section 10(6)",
"chapter": null,
"content": "Provided further that, the Designated Court shall on an application by the Competent\nAuthority pass such order or issue such directions as may be necessary for the equitable\ndistribution among the depositors of the money attached or realized out of the sale and in\ncase the money realized from the sale of property is not enough to cover the shortfall, the\nDesignated Court may impose fine on every person or an employee responsible for the\nmanagement of or conducting of business of affairs of such Financial Establishment to cover\nthe shortfall as may be necessary for the purpose of repayment to the depositors.",
"footnote": "",
"is_definition": false,
"sort_order": 750
},
{
"number": "10",
"title": "Section 10(7)",
"chapter": null,
"content": "(7) Notwithstanding anything contained in section 438 of the Code of Criminal Procedure\nCode, 1973 (Central Act 2 of 1974), no Court shall grant anticipatory bail to any person under\nthis Act.",
"footnote": "2 of 1974; 1973",
"is_definition": false,
"sort_order": 760
},
{
"number": "11",
"title": "Section 11. Attachment of properties of malafide transferees",
"chapter": null,
"content": "Attachment of properties of malafide transferees:\n11. (1) Where the assets available for attachment of a Financial Establishment or other\nperson referred to in section 3 are found to be less than the amount or value which the\nFinancial Establishment is required to repay to the depositors and where the Court of\nDistrict and Sessions Judge of Competent Jurisdiction or the Special Court constituted\nunder this Act is satisfied by affidavit or otherwise that the said Financial Establishment has\ntransferred (whether after the commencement of this Act or not) any of the property otherwise\nthan in good faith and for consideration the Court of District and Sessions Judge of Competent\nJurisdiction or the Special Court constituted under this Act may, by notice, require any\ntransferee of such property (whether or not he received the properly directly from the said\nFinancial Establishment) to appear on date to be specified in the notice and show cause\nwhy so much of the transferee's property as is equivalent to the proper value of the property\nso transferred should not be attached.",
"footnote": "",
"is_definition": false,
"sort_order": 770
},
{
"number": "11",
"title": "Section 11(2)",
"chapter": null,
"content": "(2) Where the said transferee does not appear and show cause on the specified date or\nwhere after investigation in the manner provided in sub-section (5) of section10, and the\nCourt of District and Sessions Judge of Competent Jurisdiction or the Special Court constituted\nunder this Act is satisfied that the transfer of the property to the said transferee was not in\ngood faith and for consideration, the Court of District and Sessions Judge of Competent\nJurisdiction or the Special Court constituted under this Act shall order the attachment of so\nmuch of the said transferee's property as is in the opinion of the Court of District and Sessions\nJudge of Competent Jurisdiction or the Special Court constituted under this Act is equivalent\nto the proper value of the property transferred.",
"footnote": "",
"is_definition": false,
"sort_order": 780
},
{
"number": "12",
"title": "Section 12. Security in lieu of attachment",
"chapter": null,
"content": "Security in lieu of attachment:\n12. Any Financial Establishment or person whose property has been or is about to be\nattached under this Act, may, at any time, apply to the District and Sessions Judge of\nCompetent jurisdiction or the Special Court constituted under this Act for permission to give\nsecurity in lieu of such attachment and where the security offered and given is in the opinion\nof the Court, of District and Sessions Judge of Competent jurisdiction or the Special Court\nconstituted under this Act satisfactory and sufficient, it may cancel the ad-interim order of\nattachment or as the case may be, refrain from passing the order of attachment.",
"footnote": "",
"is_definition": false,
"sort_order": 790
},
{
"number": "13",
"title": "Section 13. Administration of property attached",
"chapter": null,
"content": "Administration of property attached :\n13. The Court of District and Sessions Judge of Competent Jurisdiction or the Special\nCourt constituted under this Act may on the application of any person interested in any property,\nattached under this Act and after giving the competent authority an opportunity of being heard,\nmake such orders as the District and Sessions Judge of competent Jurisdiction or the special\nCourt constituted under this Act considers just and reaonable for providing of such property\nattached as the applicant claims an interest in, such sums, as may be reasonably necessary\nfor the maintenance of the applicant and his family and for expenses connected with the\ndefense of the applicant where criminal proceedings have been instituted against him in the\nCourt of District and Sessions Judge of Competent Jurisdiction or the Special Court.",
"footnote": "",
"is_definition": false,
"sort_order": 800
},
{
"number": "14",
"title": "Section 14. Appeal",
"chapter": null,
"content": "Appeal:\n14. Any person including the competent authority, if aggrieved by an order of the Court\nof District and Session Judge of Competent Jurisdiction or the Special Court constituted\nunder this Act, may appeal to the High Court within thirty days from the date of the order.",
"footnote": "",
"is_definition": false,
"sort_order": 810
},
{
"number": "15",
"title": "Section 15. Special Public Prosecutor",
"chapter": null,
"content": "Special Public Prosecutor:\n15. Government shall by notification, appoint an Advocate having not less than 7\nyears; standing as a Special Public Prosecutor for the purpose of conducting the cases\nfalling under this Act in the Court of District and Session Judge or Special Court.",
"footnote": "",
"is_definition": false,
"sort_order": 820
},
{
"number": "16",
"title": "Section 16. Procedure and powers of the Court of District and Sessions Judge regarding offences",
"chapter": null,
"content": "Procedure and powers of the Court of District and Sessions Judge regarding offences:\n16. (1) The Court of District and Session Judge of Competent Jurisdiction or the Special\nCourt constituted under this Act may take cognizance of the offence without the accused\nbeing committed to it for trial and in trying the accused person shall follow the Code of\nCriminal Procedure 1973 for the trial of warrant cases by Magistrates.",
"footnote": "1973",
"is_definition": false,
"sort_order": 830
},
{
"number": "16",
"title": "Section 16(2)",
"chapter": null,
"content": "(2) The provisions of the Code of Criminal procedure, 1973 shall apply to the\nproceedings under this Act.",
"footnote": "1973",
"is_definition": false,
"sort_order": 840
},
{
"number": "86",
"title": "CHAPTER V - ACT TO OVERRIDE OTHER LAWS",
"chapter": "CHAPTER V",
"content": "CHAPTER-V\nAct to override other laws:\n17. Notwithstanding anything to the contrary contained in any other law for the time\nbeing in force enacted by the State Legislature and the Rules framed thereunder, the provisions\nof this Act shall have overriding effect.",
"footnote": "",
"is_definition": false,
"sort_order": 850
},
{
"number": "18",
"title": "Section 18. Protection of action taken in good faith",
"chapter": null,
"content": "Protection of action taken in good faith:\n18. No suit or other proceeding shall lie against the Government or the authorized officer\nor Competent Authority or an officer or employee of the Government for anything, which is in\ngood faith done or intended to be done under this Act.",
"footnote": "",
"is_definition": false,
"sort_order": 860
},
{
"number": "19",
"title": "Section 19. Power to remove difficulties",
"chapter": null,
"content": "Power to remove difficulties:\n19. If difficulty arises in giving effect to any provisions of this Act, the Government may,\nby an order, do anything not inconsistent with the Provisions of this Act, which appears to it to\nbe necessary to remove such difficulty.",
"footnote": "",
"is_definition": false,
"sort_order": 870
},
{
"number": "20",
"title": "Section 20(1)",
"chapter": null,
"content": "Powers to make rules:\n20. (1) The Government may make rules for carrying out the provisions of this Act.",
"footnote": "",
"is_definition": false,
"sort_order": 880
},
{
"number": "20",
"title": "Section 20(2)",
"chapter": null,
"content": "(2) All rules made by the State Government under this Act shall, as soon as may be\r\nafter they are made, be laid before the State Legislative Assembly while it is in Session, for\r\na total period of not less than fourteen days which may be comprised in one session or two\r\nor more successive sessions, and shall unless some later date is appointed, take effect\r\nfrom the date of their publication in the official Gazette subject to such modification or\r\nannulments as the Legislative Assembly may, during the said period agree to make so\r\nhowever, that any such modification or the annulment shall be without prejudice to the validity\r\nof anything previously done thereunder.\r\n\r\nG. S. Meena, IAS\r\nSecretary to the\r\nGovernment of Arunachal Pradesh,\r\nItanagar.\r\n\r\nPublished and printed by Directorate of Printing, Naharlagun 658/2017-DoP-250+Secy.LA-50+Secy. Home-100+Secy.\r\nLaw & Judicial-100-10-2017.",
"footnote": "",
"is_definition": false,
"sort_order": 890
}
],
"metadata": {
"Act ID": "201710",
"Act Number": "10",
"Enactment Date": "2017-09-27",
"Act Year": "2017",
"Short Title": "The Arunachal Pradesh Protection of Interests of Depositors (in Financial Establishments) Act, 2017",
"Department": "Law, Legislative and Justice Department",
"Type": "STATE",
"Location": "Arunachal Pradesh"
},
"updated_at": "2026-09-29 21:52:01"
}