The Tripura Protection of Interest of Depositors (In Financial Establishment) (Amendment) Act,2011

The Tripura Act No.4 of 2011 
The Tripura Protection of Interest of Depositors 
(In Financial Establishments) (Amendment) Act, 2011~ 
PUBLISHED IN THE 
EXTRAORDINARY ISSUE OF TRIPURA GAZETTE 
Agartala, Saturday, Apri/30, 2011 A. D., Vaisakha 10, 1933 S. E. 
Government of Tripura 
Law Department 
No.F8(1)-Law/Leg-l/2011 Dated, Agartala, the 30thApr~l, 20il. 
The following Act of the Tripura Legislative Assembly received the assent of 
the Governor on the 29111 April 2011 and is hereby published for general 
information. · 
Samiran Das 
Secretary, Law. 
Government ofTripura. 
- THE TRIPURAACT N0.4 OF 2011. 
THE TRIPURA PROTECTION OF INTEREST OF DEPOSITORS 
(IN FINANCIAL ESTABLISHMENTS) (AMENDMENT) ACT, 2011. 
AN 
ACT 
To enhance the level of protection of interest of depositors in Financial Establishments 
in Tripura by providing more teeth to the existing legislation in this behalf . 
Whereas, it is felt expedient to amend the Tripura Protection of Interest of Depositors 
(In Financial Establishments) Act, 2000 to provide more protection to the interest of the 
depositors in Financial Establishments and to curb menace of fly by night operators aimed 
at defrauding the depositors . 
It is hereby enacted in the Sixty Second year of the Republic of India, by the Tripura 
Legislative Assembly, as follows:-
1. Short title, extent and commencement 
(1) This Act may be called "The Tripura Protection of Interest of Depositors (In Financial 
Establishments) (Amendment) Act, 2011" 
(2) It extends to the whole of Tripura. 
(3) It shall come into force from the date of its publication in the Tripura Gazette. 
2. Substitution of Section 3 
For Section 3 o~ the Tripura Protection of Interest of Depositors (In Financial 
Establishments) Act, 2000 (hereinafter called as the Principal Act), the following shall be 
substituted namely:-
"3.Any Financial Establishment which (i)fraudulently defaults any repayment 
of deposit on maturity along with any benefit in the form of interest, bonus, 
profit or in any other form as promised ; or (ii)fraudulently fails to render service 
as assured, against the deposit ; or (iii)is found indulging in a fraudulent act 
during busjness operatjon , 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 shall, on conviction , be punished with imprisonment for a term 
which may extend to ten years and with fine which may extend to one lakh of 
rupees and such Financial Establishment also shall be liable for a fine which 
may extend to one lakh of rupees : 
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Provided that in the absence of special and adequatE reasons recorded in the 
judgement of the Court, the imprisonment shall not Je for less than 5 years 
and the fine shall not be less than one la~h of rupees. 
Explanation :- For the purpose of this section, a financial Establishment, means 
and includes, which-
(i) commits default in repayment of such deposit with such benefits 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 
(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 
(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 recovering the same when needed, shall 
be deemed to have committed a default fraudulently or failed to render specific 
service fraudulently." 
3. Insertion of new section - 3A 
After Section 3 of the Principal Act, the following new Section 3A shall be 
inserted, namely:-
3A (1) Before starting operation in Tripura, every financial establishment shall intimate 
the Competent Authority about the details of its business in the local jurisdiction 
of such Authority indicating, with supporting documents, the permission/sanction 
of the Authority like Securities and Exchange Board of India (SEBI) or the 
Reserve Bank of India (RBI) or any other authority of Central or State 
Government required under the relevant law for the time being in force in such 
form and in such manner, as may be prescribed by the State Government. 
(2) Every financial establishment shall file a monthly statement about its business 
transaction in that local area in such form and in such manner, as may be 
prescribed by the State Government to the Competent Authority along with a 
copy of the periodical statement which is filed to the SEBI or, as the case may 
be, RBI or any other authority of Central or State Government. 
(3) The Government may authorize any officer of such rank as it may prescribe to 
direct any financial establishment acting in its local jurisdiction to furnish such 
other statement or information relating to or connected with the deposits 
received by it. 
(4) The Government may authorize any officer of such rank as it may prescribe to 
visit the office premises or other places of any financial establishment Operating 
in the State to check the books of account and other documents to ensure that 
the business of depos it taking is being conducted as per relevant law witn 
permission or sanction of the authority empowered by that law or that sucn 
business is not dressed in any form for misleading or cheating the depositors . 
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lllustration:-lf a deposit taking business is dressed or camouflage in the form 
of any other business like the business of real-estate, plantation, tours and 
travels, supply of any valuable goods or service or gift thereof etc. shall be 
deemed to be a fraud~lent act for the purpose of this Act. 
(5) For failure to furnish the intimation or statement under sub-section 1, 2 or 3 or 
furnishing a wrong or misleading statement the competent authority, if satisfied 
may after giving reasonable opportunity to the Financial Establishment in 
accordance with law, impose a fine of Rs.25,000/-(Rupees Twenty Five 
thousand) for such every default. 
(6) Upon receipt of a report from the officer authorized under sub-section 4 or 
otherwise if the competent authority is satisfied that the Financial Establishment 
is acting in a fraudulent manner in violation of the provision of relevant law 
may file a complaint alleging commission of an offence under Section 3. 
(7) In order to prevent continuation of such fraudulent act or d~fault or non 
cooperation at the ·time of inspection with reference to sub-section 4 or on 
detection by the inspecting officer that such business is not being conducted 
as per relevant law with permission or sanction of the authority empowered by 
that law or such business is dressed in any form for misleading or cheating the 
depositors, the competent authority may also pass such interim order as he 
may consider appropriate to restrain that establishment from operating in that 
area, freeze the bank accounts and restrain it from sale, transfer or alte~ any 
moveable or immoveable property of that establishment pending confirmation 
by the State Government. 
(8) The fine money imposed under sub-section 5 if not paid within the time fixed 
in the order may be recovered as arrear of land revenue. 
(9) Any financial establishment , aggrieved by the order of the competent authority 
may file appeal to the State Government within a ·month from date of the 
order. Such appeal shall be heard by an officer not below the rank of a Secretary 
as the State Government may authorize provided that no appeal will be admitted 
without deposition of the amount of penalty ordered by the competent authority 
or reduced amount if any by the appellate authority. 
4. Substitution of Section 14. 
For Section 14 of the Principal Act, thefoUowing Section shall be substituted, namely:­
"14.Notwithstanding anything to the contrary contained in any other Act, except 
the Act or Acts enacted by Parliament and the rules framed thereunder, the 
provisions of this Act shall apply." 
Samiran Das, 
Secretary, Law. 
Government of Tripura. 
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Printed by 
The Manager, Tripura Government Press, Agartala . 
TGPA-13-01-2017 -20Q-J.C. Nc 21083. 
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