Fraudulent default by Financial Establishment:

Where any Financial Establishment, having fraudulently or dishonestly, defaults in repayment of any deposit on maturity along with any benefit in the form of interest, bonus or profit, or in any other form as promised or fraudulently or dishonestly fails to render service as assured against the deposit, the Financial Establishment and every person including the promoter, partner, director, manager or any other person or any employee responsible for the management of or conducting the business or affairs of such Financial Establishment shall, on convention, be punished with imprisonment for term up to ten years and with fine up to ten years and with fine up to one lakh of rupees or where such default relates to a quantifiable sum of money twice amount of such, some whichever is more:

Provided that in absence of special and adequate reasons to be recorded in judgement the Court, the imprisonment shall not be for less than three years and the fine shall not be less than fifty thousand rupees.

Explanation-I For the purpose of this section, a Financial Establishment, which commits default in repayment of any deposit with such benefits in the terms of interest, bonus, profit or in any other term as promised of falls to render any specified service agreed agains the deposit with an intention of causing wrongful gain to one person on wrongful loss to another person or commits such defaults due its inability arising out of impracticable of commercially not viable promises made while accepting such deposits or arising out of development of money or assets acquired out of the deposits in such a manner as it involves inherent risk in recovering the same when needed, shall be deemed to have committed a default or failed to render the specific service, fraudulently.

Explanation-II: When a question arises whether any Financial Establishment has committed fraudulent default within the meaning of this section, the