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The Delhi Protection of Interest of Depositors (In Financial Establishment) Act, 2001
The Delhi Protection of Interest of Depositors (In Financial Establishment) Act, 2001
Sections
1. Short title and commencement.
Section 12. Definitions.
Section 23. Fraudulent default by Financial Establishment.
Section 34. Attachment of properties on default of return of deposits.
Section 45. Appointment of Competent Authority.
Section 56. Duties and power of the Competent Authority.
Section 67. Assessment of assets and deposit liabilities.
Section 78. Report by the Competent Authority.
Section 89. Powers of the Designated Court regarding realization of assets and payment to the depositors.
Section 910. Designated Court.
Section 1011. Powers of Designated Court regarding attachment.
Section 1112. Attachment of property of mala fide transferees.
Section 1213. Security in lieu of attachment.
Section 1314. Administration of property attached.
Section 1415. Appeal.
Section 1516. Special Public Prosecutor.
Section 1617. Procedure and powers of Designated Court regarding offences.
Section 1718. Act to override other laws.
Section 1819. Protection of action taking in good faith.
Section 1920. Power to delegate.
Section 2021. Power to make rules.
Section 2122. Power to remove difficulties.
Section 22
the-delhi-protection-of-interest-of-depositors-in-financial-establishment-act-2001.json
•
22 Sections
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Delhi
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"id": 27128,
"slug": "the-delhi-protection-of-interest-of-depositors-in-financial-establishment-act-2001",
"title": "The Delhi Protection of Interest of Depositors (In Financial Establishment) Act, 2001",
"short_title": "The Delhi Protection of Interest of Depositors (In Financial Establishment) Act, 2001",
"act_number": "Delhi Act No. 10 of 2001",
"act_year": 2001,
"act_type": "STATE",
"location": "Delhi",
"law_status": "unknown",
"enactment_date": null,
"description": "The Delhi Protection of Interest of Depositors (In Financial Establishment) Act, 2001",
"preamble": "",
"section_label": "Section",
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{
"number": "1",
"title": "1. Short title and commencement.",
"chapter": null,
"content": "",
"footnote": "",
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{
"number": "2",
"title": "2. Definitions.",
"chapter": null,
"content": "(a) \"Assistant Collector\" means an officer appointed as such under the Delhi Land Revenue Act, 1954 (Act 12 of 1954).\n(b) \"Competent Authority\" means the Authority appointed under section 5.\n(c) \"Delhi\" means the National Capital Territory of Delhi.\n(d) \"Deposit\" includes 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 or otherwise, either in cash or in kind or in the form of a specified service with or with out any benefit in the form of interest, bonus, profit or in 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 SEBI, established under the Securities and Exchange Board of India Act, 1992 (15 of 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, (10 of 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 6 A of the Industrial Development Bank of India Act 1964 (18 of 1964);\n(d) Any other institution that may be specified by the Government in this behalf;\n(v) Amount received in the ordinary course of business by way of-\n(a) security deposits;\n(b) dealership deposits;\n(c) earnest money;\n(d) advanced against order for goods or services;\n(vi) any amount received from an individual or a firm or an association of individuals not being a body corporate, registered under any enactment relating to money lending which is for the time being in force in Delhi;\n(vii) any amount received by way of subscriptions in respect of a chit:\n(e) \"Designated Court\" means the Designated Court constituted under section 10;\n(f) \"Financial establishment\" means a person or a group of persons accepting deposit under any scheme or arrangement or in any other manner but does not include a corporation or a corporation or a co-operative society owned or controlled by any State Government or the Central Government or the Government of any Union Territory or a banking company as defined under clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949).\n(g) \"Government\" means the Government of National Capital Territory of Delhi.\n(h) \"Lieutenant Governor\" means the Administrator of the National Capital Territory of Delhi appointed by the President under article 239 AA of the Constitution.",
"footnote": "",
"is_definition": true,
"sort_order": 1
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{
"number": "3",
"title": "3. Fraudulent default by Financial Establishment.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 2
},
{
"number": "4",
"title": "4. Attachment of properties on default of return of deposits.",
"chapter": null,
"content": "(i) where, upon complaints received from the depositors, or otherwise, the Government is satisfied that any financial establishment has failed,-\n(a) to return the deposit after maturity or on demand by the depositors; or\n(b) to pay interest or other assured benefit; or\n(c) to provide the service promised against such deposit; or\n(ii) where the Government has reason to believe that any financial establishment is acting in a manner detrimental to the interest of the depositors, with an intention to defraud them an if the Government is satisfied that such financial establishment is not likely to return the deposits or make payment of interest or other benefits assured or to provide the services against which the deposit is received, the Government may-",
"footnote": "",
"is_definition": false,
"sort_order": 3
},
{
"number": "5",
"title": "5. Appointment of Competent Authority.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 4
},
{
"number": "6",
"title": "6. Duties and power of the Competent Authority.",
"chapter": null,
"content": "(ii) Without prejudice to the generality of the powers vested under sub-clause (1) of this sub-section, the Competent Authority shall be entitled to:-\n(a) assistance of any police officer or any other Authority or person and on such requisition it shall be the duty of the police officer or such other Authority or person to extend necessary assistance;\n(b) open bank accounts in any scheduled commercial bank and credit all monies realized and operate the bank accounts while dealing with the money received in his capacity and Competent Authority;\n(c) require any person believe to be in possession or control over any money, property or assets of the financial establishment, to furnish necessary information, to hand over possession of such assets to the Competent Authority and such person shall be comply with the requisition without any loss of time;\n(d) appoint legal practitioner or chartered accountant or any other person whose services are necessary for taking possession of assets and realization of the assets of the financial establishment;\n(e) sell, receive, transfer, endorse or otherwise deal with any marketable security or negotiable instrument belonging to or in the control of the financial establishment and give proper discharge for the same;\n(f) sell, transfer or otherwise realize any moveable or immoveable property belonging to or in the control of the financial establishment either by public auction or with the prior approval of the Designated Court by private arrangements:\n(g) make payment as per orders passed by the Designated Court from the bank accounts, and\n(h) do all and every act and deed which would be necessary for the speedy realization of the assets of the financial establishment.",
"footnote": "",
"is_definition": false,
"sort_order": 5
},
{
"number": "7",
"title": "7. Assessment of assets and deposit liabilities.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 6
},
{
"number": "8",
"title": "8. Report by the Competent Authority.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 7
},
{
"number": "9",
"title": "9. Powers of the Designated Court regarding realization of assets and payment to the depositors.",
"chapter": null,
"content": "(a) any direction to the Competent Authority as it deem fit, for effective implementation of the provisions of this Act;\n(b) approve the statement of dues of the financial establishment due from various debtors, assessment of the value of the assets of the financial establishment, finalize the list of the depositors and their respective dues;\n(c) direct the Competent Authority to take possession of any assets belonging to or in the control of the financial establishment and sell, transfer or realize the attached assets, either by public auction or by private sale as he deems fit depending upon the nature of assets and credit the sale proceeds thereof to the bank account;\n(d) approve the necessary expenditure to be incurred by the Competent Authority for taking possession and realization of the assets of the financial establishment;\n(e) order for payment to the depositors by the Competent Authority or order for proportionate payment to the depositors in the event of the money so realized is not sufficient to meet the entire deposit liability, and\n(f) pass any order which the Designated Court deems fit for realization of the assets of the financial establishment and repayment to the depositors of the financial establishment or any matter or issue incidental thereto.",
"footnote": "",
"is_definition": false,
"sort_order": 8
},
{
"number": "10",
"title": "10. Designated Court.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 9
},
{
"number": "11",
"title": "11. Powers of Designated Court regarding attachment.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 10
},
{
"number": "12",
"title": "12. Attachment of property of mala fide transferees.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 11
},
{
"number": "13",
"title": "13. Security in lieu of attachment.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 12
},
{
"number": "14",
"title": "14. Administration of property attached.",
"chapter": null,
"content": "(a) providing from such of the property attached and vested in the Competent Authority as the applicant claims an interest in such sums as may be reasonably necessary for the maintenance of the applicant and of his family, and for expenses connected with the defence of the applicant where criminal proceedings have been instituted against him in the Designated Court under section 3;\n(b) safeguarding so far as may be practicable the interest of any business affected by the attachment and in particular, the interest of any partners in such business;\n(c) liabilities according to a financial establishment or person emanating out of proceedings before a Designated Court, shall be discharged in the manner prescribed by the Government out of the attached properties and assets in respect of such financial establishments or person as referred to in section 4.",
"footnote": "",
"is_definition": false,
"sort_order": 13
},
{
"number": "15",
"title": "15. Appeal.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 14
},
{
"number": "16",
"title": "16. Special Public Prosecutor.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 15
},
{
"number": "17",
"title": "17. Procedure and powers of Designated Court regarding offences.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 16
},
{
"number": "18",
"title": "18. Act to override other laws.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 17
},
{
"number": "19",
"title": "19. Protection of action taking in good faith.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 18
},
{
"number": "20",
"title": "20. Power to delegate.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 19
},
{
"number": "21",
"title": "21. Power to make rules.",
"chapter": null,
"content": "(a) all matters expressly required or allowed by this Act to be prescribed;\n(b) the procedure for attachment of property on default of return of deposit and terms and conditions, if any, required for the purpose;\n(c) the procedure for assessment of assets and deposit liabilities by the Competent Authority;\n(d) the procedure for reporting to the Designated Court by the Competent Authority;\n(e) the manner in which the liabilities accruing to a financial establishment or person emanating out of the proceedings before a Designated Court is to be discharged out of the attached properties and assets in respect of such financial establishments or persons;\n(f) the procedure for filing appeals by the Competent Authority, if aggrieved by an order of Designated Court;\n(g) the maintenance of registers and books of accounts by the financial establishments covered under this Act, the safe custody of books, papers and documents in the office of the Competent Authority and also for destruction of such books, papers and documents no longer required, and\n(h) the auditing of the Balance Sheets and Profit and Loss Accounts.",
"footnote": "",
"is_definition": false,
"sort_order": 20
},
{
"number": "22",
"title": "22. Power to remove difficulties.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 21
}
],
"metadata": {
"Act ID": "dl156",
"Act Number": "Delhi Act No. 10 of 2001",
"Enactment Date": "",
"Act Year": "2001",
"Short Title": "The Delhi Protection of Interest of Depositors (In Financial Establishment) Act, 2001",
"Type": "UNION_TERRITORY",
"Location": "Delhi"
},
"updated_at": "2026-09-29 21:55:22"
}