Appointment, powers and duties of Competent Authority

(1) At the time of issuing an order under sub-section (1) of Section 4, the Government may appoint any of its officers, not below the rank of Deputy Collector, as Competent Authority to control the money and property of the Financial Establishment attached under Section 4. (2) On receipt of the order of appointment, the Competent Authority shall immediately take all necessary steps to take physical possession of all money and assets of the concerned Financial Establishment, and the Competent Authority shall have all such powers as are necessary for the said purpose. (3) The Competent Authority shall, within 30 days of the publication of the said order, apply to the Designated Court for making the order absolute, stating the grounds on which the Government issued the order under Section 4, the details of the money or property believed to be acquired from the deposits, the details of persons, if any, in whose names such property is believed to be held, or details of any other property attached under Section 4, along with one or more affidavits. (4) The Competent Authority may also apply to any Designated Court or other judicial forum/authority constituted under similar legislation in another jurisdiction to make the provisions of this Act effective in respect of money or property of a notified Financial Establishment or person situated within that jurisdiction. (5) Without prejudice to the generality of the powers under sub-section (1), the Competent Authority shall be entitled to: (i) seek assistance from any police or other authority/person, and it shall be their duty to provide such assistance; (ii) open a bank account in a scheduled commercial bank to handle money received in the capacity of Competent Authority and deposit all recovered money and operate the bank account; (iii) require any person believed to have possession or control over the money or assets of the Financial Establishment to provide necessary information or hand over possession of such property, and such person shall comply without waste of time; (iv) appoint legal professionals or chartered accountants or any other person whose services are necessary for taking possession or recovery of assets; (v) sell, receive, transfer, endorse, negotiate or otherwise deal with any sale security or negotiable instrument under the control of the Financial Establishment; (vi) sell, transfer or otherwise recover any movable or immovable property of the Financial Establishment by public auction or, with the prior approval of the Designated Court, by private arrangement; (vii) make payments from the bank account as per the orders passed by the Designated Court; (viii) perform all acts and duties necessary for the prompt recovery of the property of the Financial Establishment. Provided that movable properties shall not be sold or transferred before the attachment order by the Government is made absolute by the Designated Court or a revised attachment order is issued under Section 8. (6) The Competent Authority shall apply to the Designated Court from time to time for permission to pay the depositors from the recovered money. While making such application, the Competent Authority shall determine the liabilities of the depositors and other liabilities. In case the recovered money is insufficient, the Competent Authority shall request the Designated Court for permission to make partial payment to the depositors and other creditors and shall distribute the money according to the orders of the Designated Court. Explanation - For the purposes of this section, "Financial Establishment" includes directors, promoters, managers or members of the said establishment or any other person whose property or assets have been attached under Section 3.