Uttarakhand Protection of Interests of Depositors (in Financial Establishments) Act, 2005
No: 9 Dated: Jan, 27 2005
Uttarakhand Protection of Interests of Depositors (in Financial Establishments) Act, 2005
[Uttarakhand Act No. 09 of 2005]
An Act to protect the interests of depositors in financial establishments in the state of Uttarakhand.
Be it enacted in the Fifty-fifth year of the Republic of India by the Legislative Assembly of the State of Uttarakhand as follows:-
1. Short title, Extent and commencement:- (1) This Act may be called the Uttarakhand Protection of Interests of Depositors (in Financial Establishments) Act, 2005.
(2) In extends to the whole of Uttarakhand.
(3) It shall be deemed to have come in to force on the date of its publication in the official gazette.
2. Definitions :- In this Act unless the context otherwise requires--
(a) “Assistant Collector Ist Class” means an officer appointed as such under the U.P. Land Revenue Act, 1901(Act No.3 of 1901) (as applicable to the State of Uttarakhand);
(b) “Competent Authority” means the Authority appointed under section 5;
(c) “Deposit” includes and shall be deemed always to have included any receipt of money or acceptance of any valuable commodity by any Financial Establishment to be returned after a specified period or otherwise, either in case or kind or in the form of a specified service with or without any benefit in the form of interest, bonus, profit or in any other form, but does not include:-
(i) amount raised by way of share capital or by way of debenture, bond or any other instrument covered under the guidelines given, and regulations made, by the Securities and Exchange Board of India, established under the Securities and Exchange Board of India Act,1992 (Act No. 15 of 1992);
(ii) amounts contributed as capital by partners of a firm;
(iii) amounts received from a scheduled bank or co-operative bank or any other banking company as defined in clause(c) of section 5 of the banking Regulation act, 1949 (Act no 10 of 1949);
(iv) any amount received from—
(a) the Industrial Development Bank of India,
(b) any financial institution specified in or under section 4 A of the companies act, 1956 (Act No. 1 of 1956),or
(c) any other institution that may be specified by the Government in this behalf;
(v) amounts received in the ordinary course of business by way of—
(a) security deposit,
(b) dealership deposit,
(c) earnest money, and
(d) advanced against order for goods or services;
(vi) any amount received from an individual or a firm or an association of 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 Act, 1982 (Act No.40 of 1982)
Explanation II- Any credit given by a seller to a buyer on the sale of any property (whether movable or immovable) shall not be deemed to be a deposit for the purposes of this clause;
(d) “Designated Court” means the Designated Court constituted under section 10;
(e) “Financial Establishment” means any person or a group of individuals including a firm or a company accepting 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 clause (c) of section 5 of the banking Regulation Act, 1949 (Act No. 10 of 1949);
(f) “Government" means the Government of Uttarakhand
3. Fraudulent default by Financial Establishment :- Any Financial Establishment, which fraudulently defaults any repayment or deposit on maturity along with any benefit in the form of interest, bonus, profit or in any other form as promised or fraudulently fails to render service as assured against the deposit, every person including the promoter partner, director, manager or any other person or an employee responsible for the management of or conduction of the business or affairs of such Financial Establishment shall, on conviction, be punished with imprisonment for a term which may extend to six years and with fine which may extend to one lakh of rupees and such Financial Establishment shall also be liable for a fine which may extend to an amount equivalent to rupees five lakhs or where such deposit is quantifiable in terms of money twice the amount involved in such default, whichever is more:
Provided that in the absence of special and adequate reasons recorded in the judgment of the court, the imprisonment shall not be less than three years and the fine shall not be less than rupees twenty thousand as against each individual and not less than rupees on lakh against such Financial Establishment.
Explanation- For the purpose of this section, a Financial Establishment, which 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 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 commits such defaults due to its inability arising out of impracticable or commercially not viable promised 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 or failed to render the specific service, fraudulently.