Competent Authority.

- (1) The Government may, by notification, appoint (one or more authorities for such area or areas or such case or cases as may be specified in the notification) hereinafter called "the Competent Authority" to exercise control over the properties attached by the Government under Section 3. (2) The Competent Authority shall have such other powers as may be necessary for carrying out the purposes of this Act. (3) Upon receipt of the authors of the Government under Section 3, the Competent Authority shall apply within thirty days to the Special Court constituted under this Act for making the ad-interim order of the attachment absolute and for a direction to sell the property so attached by public auction and realize the sale proceeds. (4) An application under sub-section (3) shall be accompanied by one or more affidavits, stating the grounds on which the belief that the Financial Establishment has committed any default or is likely to defraud, is founded, the amount of money or value of other property believed to have been procured by means of the deposit, and the details, if any, of persons in whose name such property is believed to have been invested or purchased out of the deposits or any other property attached under Section 3. (5) The Competent Authority shall make an application to any Court having jurisdiction to try similar cases or deal with the subject matter pertaining to money or property belonging to a Financial Establishment or any person specified in Section 3 situated within the territorial jurisdiction of that of that court for appropriate orders.

1. (6) For the purpose of crediting and dealing with the money realized by the Competent Authority, he shall open an account in any Scheduled commercial bank. CHAPTER-Ill 5. Default in Repayment of deposits and interest honouring the commitment: - Notwithstanding anything contained in Chapter-11, where any Financial Establishment defaults the return of the deposit, or defaults the payment of interest on the deposit (or fails to return in any kind or fails to render service for which the deposits has been made) every person responsible for the management of the affairs of the Financial Establishment shall be punished with imprisonment for a term which may extend to ten years and with fine which may extend to one Iakh of rupees and such Financial Establishment is also liable for a fine which may extend to one lakh of rupees. 5A. Compounding of offence: - (1) An offence punishable under section 5 may, before the institution of the prosecution, be compounded by the Competent Authority or after the institution of the prosecution, be compounded by the Competent Authority with the permission of the Special Court, on payment of the entire amount due to the depositors with or without interest. (2) When an offence has been compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken or continued against the offender, in respect of the offence so compounded and the offender, if in custody shall be discharge forthwith. CHAPTER-IV