Attachment of properties on default of return of deposits

(1) The Government or the nodal officer notified by the Government or the District Magistrates in their respective jurisdiction, suo moto or based on the market intelligence reports or Police Authority on receipt of any complaint, may investigate or cause investigation of a complaint or fraudulent transaction through its functionaries, collect the information regarding the properties and money believed to have been acquired by any financial establishment, from public or organizations or other institutions as deemed appropriate. The district magistrate shall forward his report together with the complaints and market intelligence reports, if any, received by him along with the investigation or inquiry report from the Authorized Authority under section 4 including Police Authorities or Investigation Agencies at District level or State level, to the Government (Revenue Department) or the nodal officer notified by the Government. (1a) The Secretary to Government, Revenue Department, the competent Authority or any authority nominated by the Government shall, for the purposes of this section, also have the same powers as vested in a civil court under the Code of Civil Procedure, 1908 while conducting investigation or inquiry in respect of the following matters, namely:- (a) discovery and inspection; (b) enforcing the attendance of any person, including any officer of a reporting entity and examining him on oath; (c) compelling the production of records; (d) receiving evidence on affidavits; (e) issuing commissions for examination of witnesses and documents; and (f) any other matter which as may be prescribed. (1b) All the persons so summoned shall be bound to attend in person or through authorised agents, as such officer may direct, and shall be bound to state the truth upon any subject respecting which they are examined or make statements, and produce such documents as may be required. (1c) Every proceeding under this section shall be deemed to be a judicial proceeding within the meaning of section 229 and section 267 of the Bharatiya Nyaya Sanhita, 2023 (Central Act 45 of 2023). (2) Not withstanding anything contained in any other law for the time being in force,- (i) where, suo moto or based on the market intelligence reports or upon complaint received from any depositors or otherwise, the Secretary to Government, Revenue Department is satisfied that any financial establishment has failed,- (a) to return the deposit after maturity or on demand by depositor; or (b) to pay interest or other assured benefit; or (c) to provide the service against such deposit; or; (ii) Where the Government has reason to believe that any Financial Establishment is acting in and detrimental to the interest of the depositors with an intention to defraud them; or (iii) The Government or any authority notified by the Government, in order to protect the interests of the depositors of such Financial Establishment, after recording reasons in writing, issue an order directing any newspaper or publication agency to desist from issuing advertisement promoting, soliciting deposits for, or inducing any person to become a member of any scheme of any Financial Establishment under investigation or enquiry and also issue directing or barring the Financial Establishment from issuance of any further advertisement or publication or operation of any scheme of such nature and in case of any violation of such notification, direct the concerned Police Authorities to proceed against such person or agency as per concerned law. Explanation.- for the purpose of this section,- (i) "Financial Establishment" includes the directors, partners, promoters, managers or members and former directors, partners, promoters who have demitted or resigned from establishment provided their liability is limited to the period of office of said establishment or any other person whose property or assets have been attached under this section. (ii) “Publication agency” shall include newspapers, periodicals, pamphlets, posters, hoardings, visual media, social media, radio and podcast. the Government may, in order to protect the interests of the depositors of such Financial Establishments, after recording reasons in writing, issue an order by publishing it in the official gazette, attaching the money or property believed to have been acquired by such financial establishment either in its own name or in the name of any other person from and out of the deposits collected by the financial establishments, and where it transpires that such money or other property is not available for attachment or not sufficient for the repayment of the deposits, such other property of the said financial establishments, or the personal assets of the promoters, partners, directors, managers or members or any other person of the said Financial Establishments. (3) The Government shall also notify the ad-interim order made under sub-section (2) in the Official Gazette and two newspapers having wide circulation and shall also cause to be affixed a copy of such order on some conspicuous place of the property so attached. (4) On the publication of the order made 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 Special Court. In section 10 of the principal Act, after sub-section (3), the following shall be inserted, namely:- “(4) When trying an offence under this Act, the Special Court may also try an offence, other than an offence under this Act, with which the accused may, under the Code of Criminal Procedure, 1973, be charged at the same trial.”