It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

Definitions- In this Act, unless the context otherwise requires:-

1. (1) "Competent Authority" means the authority appointed under Section 4. (2) "Deposit" means the deposit of money either in one lump sum or by installments made with the Financial Establishment for a fixed period for interest or for return in anykind or for any service. (3) "Financial Establishment" means an individual or an association of individuals, a firm or a company registered under Companies Act,1956 (Central Act 1 of 1956) carrying on the business of receiving deposits under any scheme or arrangement or in any other manner but does not include a corporation or a co-operative society owned or controlled by any State Government or the Central Government or a banking company as defined under section 5 (c) of the Banking Regulation Act, 1949 (Central Act x of 1949). (4) "Government" means the State Government. CHAPTER -11 3. Attachments of properties on default of return of deposit.- Notwithstanding anything contained in any other law for the time being in force:- (I) Where upon complaints received from a number of depositors, that any Financial Establishment defaults the return of deposits after maturity, or fails to pay interest on deposit or fails to provide the service for which deposit has been made, or
   • (ii) Where the Government has reason to believe that any Financial Establishment is acting in a calculated manner with an intention to defraud the depositors, and if the Government are satisfied that such Financial Establishment is not likely to return the depositors or to make payment of interest or to provide the service, the Government may, in order to protect the interest of the depositor of such Financial Establishment, pass an ad- interim order attaching the money or other property alleged to have been procured either in the name of the Financial Establishment or in the name of any other person from and out of the deposits collected by the Financial Establishment, or if it transpires that such money or other property is not available for attachment or not sufficient for repayment of the deposits, such other property of the said Financial Establishment or the promoter, partner, director, manager or member of the said Financial Establishment, or a person who has borrowed money from the Financial Establishment to the extent of his default or, such other properties of that person in whose name properties were purchased from and out of the deposits collected by the Financial Establishment as the Government may think fit and transfer the control over the said money or property to the Competent Authority.