Arunachal Pradesh Protection of Interests of Depositors (In Financial Establishments) Act, 2017

{
    "id": 15021,
    "slug": "arunachal-pradesh-protection-of-interests-of-depositors-in-financial-establishments-act-2017-2017",
    "title": "Arunachal Pradesh Protection of Interests of Depositors (In Financial Establishments) Act, 2017",
    "short_title": "Arunachal Pradesh Protection of Interests of Depositors (In Financial Establishments) Act, 2017",
    "act_number": "(Act No. 10 of 2017)",
    "act_year": 2017,
    "act_type": "STATE",
    "location": "Arunachal Pradesh",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "Arunachal Pradesh Protection of Interests of Depositors (In Financial Establishments) Act, 2017",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Short title, extent and commencement.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 0
        },
        {
            "number": "2",
            "title": "2. Definition.",
            "chapter": null,
            "content": "(a) \"Competent Authority\" means the Authority appointed by the Government under section 6.\n(b) \"Deposit\" means and shall be deemed always to have included any receipt of Money or acceptance of any valuable commodity by any Financial Establishment to be returned after a specified period of time or otherwise, either in cash or in kind or any form of a specified service with or without any benefit in the form of interest, bonus, Profit or any other form but does not include :-\n(i) amount raised by way of share capital or by way of debenture, bond or any other instrument covered under the guidelines given and regulations made, by the Securities and Exchange Board of India, established under the Securities and Exchange Board of India Act,1992;\n(ii) amounts contributed as capital by partners of a firm;\n(iii) amounts received from a Scheduled Bank or a Co-operative Bank or any other Banking Company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 ;\n(iv) any amount received from :\n(a) the Industrial Development Bank of India.\n(b) a State Financial Corporation.\n(c) any financial institution specified in or under section 4 A of the Companies Act, 1956 or\n(d) any other institution that may be specified by notification by the Government in this behalf ; or\n(e) any amount received in the ordinary course of business by way of\n(i) security deposit\n(ii) dealership deposit\n(iii) earnest money\n(iv) advance against order for goods or services\n(v) any amount receive from an individual or a firm or an association of individuals registered under any enactment relating to money lending which is for the time being in force in the State of Arunachal Pradesh;\nand\n(vi) any amount received by subscription in respect of chit.\n(c) \"Financial Establishment\" means an individual or an association of individuals or a firm, or a company registered under the Companies Act, 1956 and carrying on the business of receiving deposits under any scheme or arrangement or in another manner and includes the Non Banking Financial Companies (NBFC) as defined in section 45 I ( c) and (f) of the Reserve Bank of India Act 1934, but does not include a Corporation or a co-operative society owned or controlled by any States Government or the Central Government, or a banking company as defined under section 5 (c) of the Banking Regulation Act, 1949.\n(d) \"Depositor\" means a person who has made deposits with Financial Establishment;\n(e) \"Government\" means the State Government of Arunachal Pradesh;\n(f) \"any other officer authorized by Government in order to carry out the purposes of this Act\" means an officer empowered by the Government, by notification in the Official Gazette, in order to carry out the purposes of this Act;\n(g) \"the Deputy Commissioner\" means the Deputy Commissioner of the District;\n(h) \"the Superintendent of Police of the District\" means the senior most police officer in-charge of the police District and shall be deemed to have included his subordinate officers;\n(i) \"the Bureau of Investigation ( Economic Officers )\" means the Bureau of investigation (Economic Offences) under the Government of Arunachal Pradesh;\n(j) \"Competent Regulatory authority\" means and includes Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA), Registrar of Companies (RoC), Registrar of Cooperative Societies, Government of Arunachal Pradesh or any other Authority empowered by the Central or State Government from time to time by a notification in the Official Gazette;\n(k) \"Special Court\" means the Court of District and Session Judge of Competent Jurisdiction or the Special Court constituted under this Act\".\n(l) \"prescribed\" means prescribed by rules made under this Act.\nChapter -II\nFraudulent Financial Establishment\n3.\n(i) Where, upon complaint received from a number of depositors that any Financial Establishment default the return of deposit after maturity or fails to pay interest on deposit The Arunachal Pradesh Extraordinary Gazette, October 6, 2017 3 or fails to provide the service for which deposit has been made, or any report from the Deputy Commissioner or an officer not below the rank of Superintendent of Police of the Bureau of investigation (Economic Offences) of the respective jurisdiction or otherwise, that 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\n(ii) Where the Government has reason to believe that any Financial Establishment is acting in a calculated manner with an intention to defraud the depositors, and if the Government is satisfied that such Financial Establishment is not likely to return the deposits or to make payment of interest or to provide the service, the Government may, in order to protect the interest of the depositors of such Financial Establishment pass an ad-interim order by publishing it in the Official Gazette, attaching the money or other property alleged to have been procured either in the name of the Financial Establishment, or in the name of any other person from and out of the deposits collected by the Financial Establishment, or if it is transpires that such money or other property is not available for attachment or not sufficient for repayment of the deposits, such other property of the said Financial Establishment or the promoter, manager or member of the said Financial Establishment, or a person who has borrowed money from the Financial Establishment to the extent of his default or such other properties of that person in whose name the properties where purchased from and out of the deposit collected by the Financial Establishment, as the Government may think fit, transfer the control over the said money or property to the competent authority.",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "4",
            "title": "4. Authority to receive complaint and cause enquiry and investigation.",
            "chapter": null,
            "content": "(i) the Deputy Commissioner or any officer not below the rank of the Superintendent of police of the Bureau of Investigation (Economic Offences) of the respective Jurisdiction, who shall be competent to receive the complaint and cause enquiry and or Investigation of the complaints so received in respect of any fraudulent act as 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, the Superintendent of Police of the District or the Officer-in-Charge of the Police station concerned, as the case may be shall forward the compliant to the Deputy Commissioner of the District within seven days of the receipt of the complaint.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "5",
            "title": "5. Offences to be cognizable and non-bailable.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 3
        },
        {
            "number": "6",
            "title": "6. Competent Authority.",
            "chapter": null,
            "content": "Chapter -III\nPunishment for default in repayment of deposit and interest\n7.\n(i) defaults in repayment of deposit on maturity along with any benefit in the form of interest bonus, profit or in any other form as promised; or\n(ii) fails to render service as assured, against the deposit; or\n(iii) is found indulging in a fraudulent act during business operation, every person including the promoter partner, director, manager or any other person or an employee responsible for the management or conduct of the business or affairs of such Financial Establishment or any person abetting the commission of such acts by the Financial Establishment shall, on conviction, be punished with imprisonment for a term which may extend to ten years and with fine which may extend to five lakh rupees and such Financial Establishment shall also be liable for a fine which may extend to five lakh rupees.;\n(i) Commits default in repayment of such deposit with such benefit in the form of interest, bonus, profit or in any other form as promised or fails to render any specified service promised against such deposit; or\n(ii) fails to render any specific service agreed against the deposit with an intention of causing wrongful gain to one person or wrongful loss to another person; or\n(iii) commits such defaults due to its inability arising out of impracticable or commercially not viable promises made while accepting such deposit or arising out of deployment of money or assets acquired out of the deposits in such a manner as it involves inherent risk in recovery of the same when needed; or The Arunachal Pradesh Extraordinary Gazette, October 6, 2017 5\n(iv) commits a fraudulent act as mentioned in Explanation 1, of section 3;",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "8",
            "title": "8. Mandatory disclosure and punishment for non-compliance.",
            "chapter": null,
            "content": "(b) While giving his No Objection Certificate under clause (a) of sub-section (1), the Deputy Commissioner, inter alia, shall satisfy himself on the adequacy of the capital base of the Financial Establishment, its business model and sustainability of its business. For the purpose of satisfying himself regarding capital adequacy of the Financial Establishment, the Deputy Commissioner may call for any other document which he, in his judgment, considers necessary for arriving at an objective conclusion.\n(c) Before giving his No-Objection Certificate under clause (a) of sub-section (1), the Deputy Commissioner shall collect a report from the Superintendent of Police having jurisdiction for this purpose. The Superintendent of Police shall cause such enquiries/ verifications of the Financial Establishment and the persons associated with it in order to ascertain their genuineness or otherwise, previous criminal conduct or acts, if any, and parameters relevant thereto as per existing laws.\nChapter -IV",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "9",
            "title": "9. Competent Court.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "10",
            "title": "10. Powers of the Court.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "11",
            "title": "11. Attachment of properties of malafide transferees.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "12",
            "title": "12. Security in lieu of attachment.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "13",
            "title": "13. Administration of property attached.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "14",
            "title": "14. Appeal.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        },
        {
            "number": "15",
            "title": "15. Special Public Prosecutor.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 12
        },
        {
            "number": "16",
            "title": "16. Procedure and powers of the Court of District and Sessions Judge regarding offences.",
            "chapter": null,
            "content": "Chapter -V",
            "footnote": "",
            "is_definition": false,
            "sort_order": 13
        },
        {
            "number": "17",
            "title": "17. Act to override other laws.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 14
        },
        {
            "number": "18",
            "title": "18. Protection of action taken in good faith.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 15
        },
        {
            "number": "19",
            "title": "19. Power to remove difficulties.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 16
        },
        {
            "number": "20",
            "title": "20. Powers to make rules.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 17
        }
    ],
    "metadata": {
        "Act ID": "Last Updated 19th February, 2020 [aru011]",
        "Act Number": "(Act No. 10 of 2017)",
        "Enactment Date": "",
        "Act Year": "2017",
        "Short Title": "Arunachal Pradesh Protection of Interests of Depositors (In Financial Establishments) Act, 2017",
        "Type": "STATE",
        "Location": "Arunachal Pradesh"
    },
    "updated_at": "2026-09-29 21:55:19"
}