Meghalaya Protection of Interest of Depositors (In Financial Establishments) Act, 2006
No: 6 Dated: May, 02 2006
THE MEGHALAYA PROTECTION OF INTEREST OF DEPOSITORS (IN FINANCIAL ESTABLISHMENTS) ACT, 2006
ACT NO. 6 OF 2006
An Act To protect the depositors made by the public in the Financial Establishments and matters relating thereto. Be it enacted by the Legislature of the State of Meghalaya in the Fifty Seventh Year of the Republic of India as follows:-
1. Short title, extent and Commencement :-(1) This Act may be called the Meghalaya Protection of Interest of Depositors (In Financial Establishments) Act, 2006.
(2) It extends to the whole of Meghalaya.
(3) It shall come into force at once.
2. Definitions :- In this Act unless the context otherwise requires,
(a) “Act” means the Meghalaya Protection of Interest of Depositors (In Financial Establishments) Act, 2006.
(b) “Competent Authority” means the authority appointed under Section 4;
(c) “Deposit” includes and be deemed always to have included any receipt of money or acceptance any valuable commodity by any Financial Establishment to be returned after a specified period or otherwise, either in cash or in kind or in the form of a specified service with or without any benefit in the form of interest, bonus, profit or any other form, but does not include:-
i) Amount raised by way of share capital or by way of debenture or by bond or by any other instrument covered under the guidelines given, and regulations made by Securities Exchange Board of India established under the Securities and exchange Board of India Act, 1992 (15 of 1992);
ii) Amount contributed as capital by partners of a Firm;
iii) Amount received from a Schedules Bank or a Cooperative Bank or any other Banking Company as defined in Clause (c) of Section 5 of the Banking Regulation Act, 1949 (10 of 1949);
iv) Any amount from:-
(a) The Industrial Development Bank of India;
(b) A State Financial Corporation;
(c) Any Financial Institution specified in Section 4A of the Companies Act, 1956 (1 of 1956);
(d) Any other institution that may be specified by the Government in this behalf;
v) Amount received in the ordinary course of business by way of:-
(a) Security Deposit,
(b) Dealership Deposit,
(c) Earnest money,
(d) Advance against order for goods of services;
vi) Any amount received from an individual or a firm or an association of individual not being a body corporate, registered under any enactment relating to money lending which is for the time being in force in the state; and
vii) Any amount received by way of subscriptions in respect of a chit;
Explanation I: “Chit” has the meaning as assigned to it in clause (b) of section 2 of the Chit Funds Acts, 1982 (10 of 1982)
Explanation II: Any credit given by a seller to buyer on the sale of any property (whether movable or immovable) shall not be deemed to be deposited for the purposes of this clause;
(d)” Financial Establishment” means an individual or an association of individuals or a firm carrying on the business of receiving deposits under any scheme of arrangement.
Or, in any other manner but does not include a corporation or a cooperative society owned or controlled by any State Government or the Central Government or a banking company as defined under Clause (c) of Section 5 of the Banking Regulation Act, 1949 (Act No. 10 of 1949);
(e) ”Section” means a section of this Act;
(f) ”Special Court” means s Special Court constituted under Section 8; and
(g) ”State Government” means the Government of Meghalaya;