The Banning of Unregulated Deposit Schemes Act, 2019

The Banning of Unregulated Deposit Schemes Act, 2019

ACT NO. 21 OF 2019

PREAMBLE

An Act to provide for a comprehensive mechanism to ban unregulated deposit schemes, other than deposits are taken in the ordinary course of business, and to protect the interest of depositors and for
matters connected therewith or incidental thereto.

ARRANGEMENT OF SECTIONS

CHAPTER I
PRELIMINARY SECTIONS

  1. Short title, extent and commencement.
  2. Definitions.
    CHAPTER II
    BANNING OF UNREGULATED DEPOSIT SCHEMES.
  3. Banning of Unregulated Deposit Schemes.
  4. Fraudulent default in Regulated Deposit Schemes.
  5. Wrongful inducement in relation to Unregulated Deposit Schemes.
  6. Certain schemes are Unregulated Deposit Schemes.
    CHAPTER III
    AUTHORITIES
  7. Competent Authority.
  8. Designated Court.
    CHAPTER IV
    INFORMATION ON DEPOSIT TAKERS
  9. Central database.
  10. Information of business by deposit taker.
  11. Information to be shared.
    CHAPTER V
    RESTITUTION TO DEPOSITORS
  12. Priority of depositors’ claim.
  13. Precedence of attachment.
  14. Application for confirmation of attachment and sale of property.
  15. Confirmation of attachment by Designated Court.
  16. Attachment of property of mala fide transferees.
  17. Payment in lieu of attachment.
  18. Powers of Designated Court.
  19. Appeal to High Court.
  20. Power of Supreme Court to transfer cases.
    CHAPTER VI
    OFFENCES AND PUNISHMENTS
  21. Punishment for contravention of section 3.
  22. Punishment for contravention of section 4.
  23. Punishment for contravention of section 5.
  24. Punishment for repeat offenders.
  25. Offences by deposit takers other than individuals.
  26. Punishment for contravention of section 10.
  27. Cognizance of offences.
    CHAPTER VII
    INVESTIGATION, SEARCH AND SEIZURE
  28. Offences to be cognizable and non-bailable.
  29. Competent Authority to be informed of offences.
  30. Investigation of offences by Central Bureau of Investigation.
  31. Power to enter, search and seize without warrant.
  32. Application of Code of Criminal Procedure, 1973 to proceedings before Designated Court.
    CHAPTER VIII
    MISCELLANEOUS
  33. Publication of advertisement of Unregulated Deposit Scheme.
  34. Act to have overriding effect.
  35. Application of other laws not barred.
  36. Protection of action taken in good faith.
  37. Power of Central Government to make rules.
  38. Power of State Government, etc., to make rules.
  39. Laying of rules.
  40. Power to amend First Schedule.
  41. Act not to apply certain deposits.
  42. Amendment to certain enactments.
  43. Power to remove difficulties.
  44. Repeal and saving.
    THE FIRST SCHEDULE
    THE SECOND SCHEDULE

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The Banning of Unregulated Deposit Schemes Act, 2019

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