LexThe ASSAM PROTECTION OF INTERESTS OF DEPOSITORS (IN FINANCIAL ESTABLISHMENTS) ACT, 2000
Assam · state statute
Open in Lexace · Ask the AI about this actRegistered No. ~ 768/97
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The Assatn Gazette
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. EXTRAORDINARY
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No. 158 Dispur , Frid::iy, 2i~ t Jul y, 2000, 30th Asadha
i92 2 IS. E. J
GOVERNM EN"l OF ASSAM
.,
OR DERS BY THE GOVERNOR .
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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) This Act may be called the Assam extent •nd '
comm e nce
ment .
Protection of Interests of Deposi-
tors (in Financi al 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,
'Fin ancial 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 C c-operative Society 1956.
owned or controlled by any State
Government or the Central Govern-
ment or a Banking Company as de- 1 A
fined und er Section !'J(c) of the ~~~r~ 194~
Banking Regulati 0n 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 .
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- - ~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 calc ulated 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 er other property alleged to have
been prc cured either in the name of the
Financial Establishment or in the name of
any other pcrs cn from and out of the depos~t
collected by the Financi al 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 pow ers as may Ge necessa ry for oar
rying out th e purpos es 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 applicat ion 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 hav e 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 Financi al 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 Establism ent 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 transf erred to the Court of District and
Sessk ns J udge of competent jurisdiction.
•
~~E ASSAM GAZ ETTE, EX:£~AORDINA~Y JUL~ 21, 2000 57 7
Power of
the Court
of the Dis
tri ct and
Scsaion s
Judge.
(iii)
t
7. (i)
(ii)
,.
(iii-)
1
The Court of District and Sessions
Judg e 0n application by the Com
_petent av.thority psss such order or
issue such dir ection as may be nece
ssary for the equitable distributi on
among t i ~c depo sitor s 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 Financ ial Establishment or to any
other pason whose property is atta
ched by the Govt rnmen t und er Sec
tion 3, a notice accompanied by an
application and affidavit and the
evidence, if any, record ed, 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 s uch notic e
to all other persons represented to
it as having or being likely to claim
any interest or titl e in the property
of the Fin ancial Establishment or
the pcxson to whom the notice is
issued calli ng upon such person to
appear on the same date specified
in the notice and make objection
if he so desires to attachment of
the prop erty 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, notwith standing 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 ord er is passed under
sub-section (iv) or sub-section (vi).
578 THE ASSAM GAZETTE. EXTRAORDINARY' JULY 21, 2000
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(iv) If 11 0 cause is shown and no
r bjcctions are made c n c·r before the speci
fied dat e the Court of District and Sessions
Judg l:' ~ 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
regard s the examina ti0n of the parties and
·in all other respects, the Cc urt cf Distri
ct 2.nd Sessions Jud ge sh2.ll, subject to the
pr e.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 Jud ge shall pa ss an vrder making the
ad-interim order of att achment absolute or
varying it by releasing a portion c·f the
property from 2.ttachment or cancelling
the ad-int erim 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.
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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 s atisfied by affida
vit or otherwise that th ere is reasonable
cause for believing that the said Finan
cial Establishment br.s transferred (whether
after the commenc ement of thi1 Act or
not) any of the property oth erwise than
in good faith and for consi derati on t he
Court of District and Sessions Judge may,
by notice, require any transfere e of such
property (whether or nor he received the
property directly from the s aid Financial
Establishm ent) to appear on a date to
be specified in th e 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 tran sf erec does not
appea r 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
satisfi ed that the transfer of the
property to the said transferee was
not in good faith and for consid era
tion, the Court of District and Se1s~
ions Judge shall order the attachm ent
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 prop er value of
the property transferred.
S11ecurifty in 9. Any Financial Establiament or
cuo h h b . attachmeat. person W cse property as eon or is
a bout to be attach ed under this Act, may,
at any time, apply to the Court
580THE ASSAM GAZETTE EXTRAORDINARY_ JULY 21, 2000
of District and sessions Judg e 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 for -
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 ord er ( f
the Court of District and Sessions judge, may
appeal to the Hi gh 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 . ...
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-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
ri oe 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
dat e 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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