Chhattisgarh Protection of depositors Interest Act, 2005
No: 24 Dated: Jul, 23 2015
Chhattisgarh Protection of Depositors Interest Act, 2005
(Act No. 24 of 2015)
An Act to protect the deposits made by the public in the financial establishment and matters connected therewith or incidental thereto.
Be it enacted by the Chhattisgarh Legislature in the Fifty-sixth Year of the Republic of India as follows :-
1. Short title and commencement. - (1) This Act may be called the Chhattisgarh Protection of Depositors Interest Act, 2005.
(2) It shall come into force from the date of its publication in the Official Gazette.
2. Definitions. - In this Act, unless the context otherwise requires,-
(a) "Chief Justice" means Chief Justice of the High Court of Chhattisgarh;
(b) "State" means State of Chhattisgarh;
(c) "State Government" means State Government of Chhattisgarh;
(d) "Competent Authority" means the authority appointed under Section 5 of the Act;
(e) "Deposit" means "deposit" as defined in Section 45-1 (bb) of Reserve Bank of India Act, 1934 (No. 2 of 1934);
(f) "Depositor" means person who makes deposit with company; and includes heir, legal representative, administrator or assignee of the depositor;
(g) "District Magistrate" means person appointed as district magistrate under Section 20 of The Code of Criminal Procedure, 1973 (No. 2 of 1974);
(h) "Financial establishment" means an individual, an association of individuals, firm or company incorporated under the Companies Act, 1956 (1 of 1956) receiving deposits under any scheme or arrangement or in any other manner but does not include, Corporation or Co-operative Society owned or controlled by the State Government or the Central Government, or Banking Company as defined under Section 5 of the Banking Regulation Act, 1949 (No. 10 of 1949);
(i) "Fraudulent default" means any financial establishment, which fraudulently defaults any repayment of deposits on maturity and/or any benefit in the form of interest, bonus, profit or dues in any other form as promised or on maturity or fraudulently fails to render services as assured against the deposit;
(j) "Special Court" means the special court constituted under Section 4 of the Act.
3. Act not in derogation of any law. - The provisions of the Act shall be in addition to and not in derogation of any other law for the time being in force.
4. Special Court. - (i) State Government in consultation with the Chief Justice may by notification in the official gazette notify as many special courts as may be necessary for such area or areas for trial of cases under the Act.
(ii) A person shall not be qualified to act as judge in special court unless he is a session's judge or additional session's judge under Code of the Criminal Procedure, 1973 (No. 2 of 1974).
5. Competent authority. - The State Government may, by notification, appoint any authority not below the rank of a District Magistrate as competent authority.
6. Intimation of business. - (1) Every financial establishment already carrying on its business in the area of jurisdiction of the competent authority, shall intimate the competent authority about its business within two months from the commencement of the Act.
(2) No financial establishment shall commence its business in the area of jurisdiction of the competent authority without prior intimation.
(3) The financial establishment shall file all such copies of periodical statements to the competent authority, which are required to be filed under the law to supervisory authorities including Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI).
(4) The competent authority at his discretion may at any time direct any financial establishment carrying on business in the area of jurisdiction of the competent authority to furnish in such form, at such intervals and within such time, such statements, information or particulars relating to or connected with deposits received by the establishment, as may be specified in general or special order.
(5) Whoever contravenes the provisions of this section shall be punished with imprisonment, which may extend to three months or with fine, which may extend to five thousand rupees or with both and financial establishment shall also be liable to pay fine, which shall not be less than twenty five thousand rupees but may extend to fifty thousand rupees.