Act 21 of 2019

The Banning of Unregulated Deposit Schemes Act, 2019

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

  • Ministry of Finance
  • Department of Financial Services
  • Enacted 2019-07-31
  • 44 sections
SectionTitle
1 Short title, extent and commencement.Read
2 Definitions.Read
3 Banning of Unregulated Deposit Schemes.Read
4 Fraudulent default in Regulated Deposit Schemes.Read
5 Wrongful inducement in relation to Unregulated Deposit Schemes.Read
6 Certain scheme to be Unregulated Deposit Scheme.Read
7 Competent Authority.Read
8 Designated Court.Read
9 Central database.Read
10 Information of business by deposit taker.Read
11 Information to be shared.Read
12 Priority of depositors' claim.Read
13 Precedence of attachment.Read
14 Application for confirmation of attachment and sale of property.Read
15 Confirmation of attachment by Designated Court.Read
16 Attachment of property of mala fide transferees.Read
17 Payment in lieu of attachment.Read
18 Powers of Designated Court.Read
19 Appeal to High Court.Read
20 Power of Supreme Court to transfer cases.Read
21 Punishment for contravention of section 3.Read
22 Punishment for contravention of section 4.Read
23 Punishment for contravention of section 5.Read
24 Punishment for repeat offenders.Read
25 Offences by deposit takers other than individuals.Read
26 Punishment for contravention of section 10.Read
27 Cognizance of offences.Read
28 Offences to be cognizable and non-bailable.Read
29 Competent Authority to be informed of offences.Read
30 Investigation of offences by Central Bureau of Investigation.Read
31 Power to enter, search and seize without warrant.Read
32 Application of Code of Criminal Procedure, 1973 to proceedings before Designated Court.Read
33 Publication of advertisement of Unregulated Deposit Scheme.Read
34 Act to have overriding effect.Read
35 Application of other laws not barred.Read
36 Protection of action taken in good faith.Read
37 Power of Central Government to make rules.Read
38 Power of State Government, etc., to make rules.Read
39 Laying of rules.Read
40 Power to amend First Schedule.Read
41 Act not to apply certain deposits.Read
42 Amendment to certain enactments.Read
43 Power to remove difficulties.Read
44 Repeal and saving.Read
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