Attachment of property of malafide transferee

(1) Where the assets of a Financial Establishment or person referred to in Section 4 are found to be less than the amount required for repayment to the depositors, and where the Designated Court, through affidavit or otherwise, is satisfied that there is reasonable ground to believe that the said Financial Establishment has transferred any property (whether after or before the commencement of this Act) otherwise than in good faith and for adequate consideration, the Designated Court may, by notice, require the transferee of such property (whether they received the property directly from the Financial Establishment or not) to appear on the date specified in the notice and show cause why the property of the transferee, to the extent of the fair market value of the transferred property, should not be attached. (2) Where the said transferee does not appear on the specified date and show cause, or where, after investigation in the manner provided in sub-section (5) of Section 8, the Designated Court is satisfied that the transfer of the property to the said transferee was not in good faith and for adequate consideration, the Designated Court shall pass an order for the attachment of as much of the property of the said transferee as in the opinion of the Designated Court is equivalent to the fair market value of the transferred property.