Section 7. Punishment for default in repayment of deposits and interests

Notwithstanding anything contained in Section 3, where any financial establishment defaults the return of the deposit or defaults the payment of interest on the deposit, or fails to return in any kind or fails to render service for which the deposit have been made, every person including the promoter, manager, director or partner or an employee of the financial establishment responsible for the management of the affairs of the financial establishment shall be punished with imprisonment, for a term which may extend to ten years and with fine which may extend to one lakh of rupees or both and such Financial Establishment shall also be liable for a fine which may extend to two lakh rupees.