Himachal Pradesh Protection of Interests of Depositors (in Financial Establishments) Act, 1999
No: 19 Dated: Aug, 18 2000
THE HIMACHAL PRADESH PROTECTION OF INTERESTS OF DEPOSITORS (IN FINANCIAL ESTABLISHMENTS) ACT, 1999
(ACT NO. 19 OF 2000)
An Act to protect the deposits made by the public in the Financial Establishments and matters relating thereto.
BE it enacted by the Legislative Assembly of the State of Himachal Pradesh in the Fiftieth Year of the Republic of India as follows:-
CHAPTER-I
1. Short title and commencement.- (1) This Act may be called the Himachal Pradesh Protection of Interests of Depositors (in Financial Establishments) Act, 1999. (2) It shall come into force at once.
2. Definitions.- In this Act, unless the context otherwise requires,-
(a) "Competent Authority" means the authority appointed under section 4;
(b) "deposit" means the deposit of a sum of money made with a Financial Establishment for a fixed period, for interest or return in any kind;
(c) "Financial Establishment" means an individual, an association of individuals or a firm carrying on the business of receiving deposits under any scheme or arrangement or in any other manner but does not include a corporation or a co-operative society owned or controlled by any State Government or the Central Government, or a banking company as defined under section 5(c) of the Banking Regulation Act, 1949 (Central Act No. X of 1949);
(d) "Government" means the State Government of Himachal Pradesh; and (e) "authorised officer" means an officer empowered, by the Government, by notification in the Official Gazette, to exercise the powers of the Government under section 3 of this Act.
CHAPTER-II
3. Attachment of properties on default of returns of deposits.- Notwithstanding anything contained in any other law for the time being in force,-
(i) where, upon the complaints received from a depositor(s) that any Financial Establishment defaults in the return of deposits after maturity,
(ii) where the Government or authorised officer has reason to believe that any Financial Establishment is acting in a calculated manner with an intention to defraud the depositors, and if the Government or the authorised officer is satisfied that such Financial Establishment is not likely to return the deposits, the Government or the authorised officer may, in order to protect the interests of the depositors of such Financial Establishment pass an ad-interim order attaching the money or other property alleged to have been procured either in the name of the Financial Establishment, or in the name of any other person from and out of the deposits collected by the Financial Establishment, or if it transpires that such money or other property is not available for attachment or not sufficient for repayment of the deposits, such other property of the said Financial Establishment or the promoter, manager or member of the said Financial Establishment, as the Government or the authorised officer may think fit, transfer the control over the said money or property to the Competent Authority