Section 12
Priority of depositors' claim.
The Banning of Unregulated Deposit Schemes Act, 2019
About this Act
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.
Save as otherwise provided in the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) or the
Insolvency and Bankruptcy Code, 2016 (31 of 2016), any amount due to depositors from a deposit
taker shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates
payable to the appropriate Government or the local authority.