The Jammu and Kashmir Protection of Interests of Depositors (In Financial Establishments) Act, 2018
The Jammu and Kashmir Protection of Interests of Depositors (In Financial Establishments) Act, 2018
This Act safeguards depositors by establishing regulations for companies and firms that accept money from people. It applies to all non-bank financial establishments that solicit deposits, excluding government-controlled entities and banking institutions. The legislation ensures deposits are returned on time and defines what qualifies as a genuine deposit versus other financial arrangements. When financial companies default on repayment obligations, authorities can seize their property to compensate victims. The law specifically excludes transactions like share capital, partnership funds, and certain banking arrangements from its scope to clarify its application. A specialized court helps resolve disputes when companies fail to repay depositors, creating a structured system to recover funds from insolvent or fraudulent financial entities.
- 1. Short title and commencement
- 2. Definitions
- 3. Attachment of properties on default of return of deposit
- 4. Competent Authority
- 5. Report and return by Financial Establishment
- 6. Default in Repayment of deposits and interests honoring the commitment
- 7. Compounding of offence
- 8. Designated Court
- 9. Powers of Designated Court regarding attachment, sale, realization and distribution
- 10. Attachment of property of malafide transferees
- 11. Security in lieu of attachment
- 12. Administration of property attached
- 13. Appeal
- 14. Special Public Prosecutor
- 15. Procedure and powers of Designated Court regarding offences
- 16. Offences non-bailable
- 17. Act to override other laws
- 18. Protection of action taken in good faith
- 19. Power to make rules
- 20. Power to remove difficulties
- 21. Repeal and Savings
PDF: pending for this language.