Attachment of properties on default of return of deposits.

(1) Government or the Deputy Commissioner of a revenue area of Delhi in their respective jurisdiction, suo-moto or on receipt of the complaints may cause investigation of a complaint or fraudulent transaction referred to in section 3. The Deputy Commissioner shall forward his report to the Competent Authority appointed under section 5 at the earliest. (2) Notwithstanding anything contained in any other law for the time being in force-- (i) where, upon complaints received from the depositors, or otherwise, the Government is satisfied that any financial establishment has failed,-- (a) to return the deposit after maturity or on demand by the depositor; or (b) to pay interest or other assured benefit; or (c) to provide the service promised against such deposit; or where the Government has reason to believe that any financial establishment is acting in a manner detrimental to the interest of the depositors, with an intention to defraud them and if the Government is satisfied that such financial establishment is not likely to return the deposits or make payment of interest or other benefits assured or to provide the services against which the deposit is received, the Government may-- in order to protect the interest of depositors of such financial establishments, after recording reasons in writing, issue an order by publishing it in the official Gazette, attaching the money or other property believed to have been acquired by such financial establishment either in its own name or in the name of any other person from out of the deposits collected by the financial establishment; or if it transpires that such money or other property is not available for attachment or not sufficient for repayment of the deposits, such other property of the said financial establishment or the personal assets of the promoter, director, partner, or manager or member of the said financial establishment, as the Government may think fit, (3) On the publication of the order under sub-section (2), all the properties and assets of the financial establishment and the persons mentioned therein shall forthwith vest in the Competent Authority appointed by the Government pending further order from the Designated Court. (1) Notwithstanding anything contained in any other law for the time being in force, where the Government has reason to believe that any Financial Establishment is acting in a calculated manner with an intention to defraud the depositors, or if the Government is satisfied that any Financial Establishment is not likely to return the deposits or pay interest or other assured benefits, or to provide the services promised against such deposits, the Government may, in order to protect the interests of the depositors, pass an ad-interim order attaching the money or other property alleged to have been procured either in the name of the Financial Establishment or in the name of any other person from and out of the deposits collected by the Financial Establishment, or if it transpires that such money or other property is not available for attachment or not sufficient for repayment of the deposits, such other property of the said Financial Establishment or the person who is or was the promoter, director, partner or manager or member of the said Financial Establishment or person as the Government may think fit. (2) The Government may appoint a Competent Authority which may be an officer not below the rank of a District Magistrate to exercise control over the money and property attached under sub-section (1). (3) The Competent Authority shall make an application within thirty days to the Designated Court to make the ad-interim order of attachment absolute. (4) An application under sub-section (3) shall be accompanied by one or more affidavits stating the grounds on which the belief that the Financial Establishment has committed any default or is about to commit any default is founded, the amount of money or value of other property believed to have been procured out of the deposits, and the details, if any, of persons in whose names such property is believed to have been invested or purchased. (5) The Competent Authority shall make an application to any court of competent jurisdiction or tribunal or other authority having jurisdiction over the property or money attached before such court for appropriate orders. (6) The Competent Authority shall make an application to the Designated Court seeking withdrawal of the attachment if the Financial Establishment or the person concerned provides sufficient security for the repayment of the deposits.