Bare Act
The Gujarat Protection of Interest of Depositors (in Financial Establishments) Act, 2003
This Act regulates financial establishments that collect deposits and imposes strict legal punishments for those that fail to repay promised funds or provide promised benefits and services. It applies primarily to the promoters, directors, and employees responsible for running these establishments. The law matters because it strengthens protections for ordinary citizens who may lose their savings, ensuring that key decision-makers face severe consequences for fraud. Under the Act, convicted individuals may face imprisonment for up to six years and substantial fines. The legislation mandates that unless exceptional circumstances are found, courts must sentence violators to at least three years of imprisonment and a minimum fine, thereby deterring financial misconduct and promoting accountability.
- 1. Short title and commencement.
- 2. Definitions.
- 3. Fraudulent defaults by Financial Establishment.
- 4. Attachment of properties on default of return of deposit.
- 5. Appointment of Competent Authority.
- 6. Duties and powers of Competent Authority.
- 7. Assessment of assets, deposits and liabilities.
- 8. Report by Competent Authority.
- 9. Designated Court.
- 10. Powers of Designated Court regarding attachment.
- 11. Powers of Designated Court regarding realisation of assets and payment to depositors.
- 12. Attachment of property of malafide 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 make rules.
- 21. Power to remove difficulty.
PDF: pending for this language.