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The Banning of Unregulated Deposit Schemes Act, 2019

Central

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.

Act number
21 of 2019
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
31 Jul 2019

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

44 sections

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