The Delhi Protection of Interest of Depositors (In Financial Establishment) Act, 2001
The Delhi Protection of Interest of Depositors (In Financial Establishment) Act, 2001
This Act aims to protect depositors in financial establishments operating within the Delhi National Capital Territory by regulating how such entities collect and manage money from the public. It specifically applies to any person or group accepting deposits in various forms like cash, commodities, or service promises with interest or profit benefits. The legislation excludes public sector institutions, banks, and entities regulated by securities and banking authorities. The Act establishes criminal penalties including imprisonment up to six years and substantial fines for both the establishment and responsible individuals like promoters or directors involved in fraudulent defaults where establishments fail to repay deposits or provide promised services. This provides stronger legal recourse and deterrent for unauthorized deposit-taking activities in Delhi, safeguarding citizens from financial exploitation.
- 1. Short title and commencement
- 2. Definitions
- 3. Fraudulent default by Financial Establishment
- 4. Attachment of properties on default of return of deposits
- 5. Appointment of Competent Authority
- 6. Duties and power of the Competent Authority
- 7. Assessment of assets and deposit liabilities
- 8. Report by the Competent Authority
- 9. Powers of the Designated Court regarding realization of assets and payment to the depositors
- 10. Designated Court
- 11. Powers of Designated Court regarding attachment
- 12. Attachment of property of mala fide transferees
- 13. Security in lieu of attachment
- 14. Administration of property attached
- 15. Appeal
- 16. Special Public Prosecutor
- 17. Procedure and powers of Designated Court regarding offences
- 18. Act to override other laws
- 19. Protection of action taken in good faith
- 20. Power to delegate
- 21. Power to make rules
- 22. Power to remove difficulties
PDF: pending for this language.