Vidhi Codex

Bare Act

The NBFC Act 2002 & Rules 2004

General200220 rules

This law protects public savings by regulating financial establishments operating in Bihar that accept money or deposits from individuals under various schemes. It applies to private financial entities, firms, companies, and individuals taking public deposits, while excluding standard government-regulated banks, cooperative societies, and SEBI-registered instruments. The Act matters because it establishes a strong mechanism to combat financial scams and fraudulent defaults. If an establishment dishonestly fails to return deposited funds or promised returns, state authorities can seize its properties, appoint officers to take physical control of assets, and set up special courts to quickly recover and distribute money back to duped depositors.

Start reading →Read full ActSections
  1. 0. Preamble
  2. 1. Short title and Commencement:
  3. 2. Definitions :
  4. 3. Fraudulent default by Financial Establishment:
  5. 4. Court shall presume that such Financial Establishment has committed the default fraudulently.
  6. 5. Code of Civil Procedure.
  7. 6. Assessment of assets and deposit liabilities:
  8. 7. Competent Authority in his best judgment.
  9. 8. Powers of Designated Court regarding attachment:
  10. 9. Powers of the Designated Court regarding realization or
  11. 10. Attachment of property of malafide transferees:
  12. 11. Designated Court equivalent to the proper value of the property transferred.
  13. 12. Administration of property attached :
  14. 13. Appeal:
  15. 14. Designated Court may appeal to the High Court of the area concerned.
  16. 15. Procedure and powers of designated Court regarding
  17. 16. Section 438 of the Code of Criminal Procedure.
  18. 17. Protection of action taken in good faith:
  19. 18. Act.
  20. 19. Power to remove difficulties :

PDF: pending for this language.