Bare Act
The Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999
General199918 sections
The Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 safeguards public depositors against fraudulent financial institutions operating in Andhra Pradesh. It applies to financial establishments collecting public deposits and holds their promoters, managers, and members strictly accountable if they fail to repay principal amounts or promised interest. To secure victims' funds, the state government can attach properties of defaulting firms or fraudulent transferees and try cases in Special Courts. Offenders face up to ten years imprisonment and substantial fines. This law matters because it deters financial scams and offers citizens dedicated mechanisms to recover savings.
- 1. Short title, extent and commencement
- 2. Definitions - In this Act, unless the context otherwise requires, -
- 3. Attachment of properties on default in respect of deposits Notwithstanding anything contained in any other law for the time being in force,-
- 4. Competent Authority
- 5. Penalty for default - Where any financial establishment defaults in the return of the deposit either in cash or kind or defaults in the payment of interest on the deposit as agreed upon, every person responsible for the management of the affairs of the financial establishment including the promoter, Manager or Member 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 rupees one lakh and such financial establishment shall also be liable for fine which may extend to rupees five lakh.
- 6. Special Court
- 7. Powers of Special Court regarding attachment
- 8. Attachment of property of certain transferees
- 9. Security in lieu of attachment - Any financial establishment or person whose property has been or is about to be attached under this Act may, at any time, apply to the Special Court for permission to give security in lieu of such attachment and where the security offered and given is in the opinion of the Special Court, satisfactory, and sufficient, it may cancel, the ad-interim order of attachment or, as the case may be, refrain from passing the order of attachment.
- 10. Administration of property attached
- 11. Appeal- Any person including the competent authority, if aggrieved by an order of the Special Court, may appeal to the High Court within thirty days from the date of such order.
- 12. Special Public Prosecutor and Special Government Pleader - The Government shall, by notification, appoint an Advocate who has been in practice as an Advocate for not less than ten years as a Special Public Prosecutor, as well as Special Government Pleader for the purpose of conducting the cases in the Special Court.
- 13. Procedure and Powers of Special Courts regarding offences
- 14. Act to override other laws - Save as otherwise provided in this Act, the provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being inforce or any custom or usage or any instrument having affect by virtue of any such law.
- 15. Penalty for false or vexatious complaints - Whoever makes a complaint knowing or having reason to believe it to be false or vexatious shall be punished with imprisonment for a term which may extend to one year with fine which may extend to rupees one lakh, or with both.
- 16. Protection of action taken in good faith - No suit, prosecution or other legal proceedings shall lie against any person for anything which is in good faith done or intended to be done under this Act or the rules make thereunder.
- 17. Power to remove doubts and difficulties - If any doubt or difficulty arises in giving effect to the provision of this Act, the Government may, by order, make provision or give such direction, not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for the removal of the doubt or difficulty.
- 18. Power to make rules
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