Puducherry Protection of Interests of Depositors in Financial Establishments Act, 2004
Puducherry Protection of Interests of Depositors in Financial Establishments Act, 2004
This law safeguards individuals who deposit money with financial establishments by criminalizing fraudulent defaults by those running these businesses. It specifically targets promoters, partners, and directors who manipulate investment schemes or fail to repay deposits with promised interest upon maturity. Given the severe penalties involved, rigorous background checks have become mandatory for all financial institutions seeking to operate. If a firm does not honor its obligations, the responsible individuals face severe consequences, including imprisonment up to six years and significant fines. Ultimately, this measure aims to restore public confidence in local financial services and protect hard-earned savings from unscrupulous operators.
- 1. Short title, extent and commencement
- 2. Definitions
- 3. Fraudulent default by Financial Establishment
- 4. Attachment of properties on default of return of deposits
- 5. Appointment of Competent Authority
- 6. Duties and powers of Competent Authority
- 7. Assessment of assets and deposit liabilities
- 8. Report by the Competent Authority
- 9. Powers of the Designated Court regarding realization of assets and payment to depositors
- 10. Designated Court
- 11. Power of Designated Court regarding attachment
- 12. Attachment of property of mala fide transferees
- 13. Security in lieu of attachment
- 14. Administration of property attached
- 15. Appeal
- 16. Special Public Prosecutor
- 17. Procedure and powers of Designated Court regarding offences
- 18. Act to override other laws
- 19. Protection of action taken in good faith
- 20. Power to make rules
- 21. Power to remove difficulties
PDF: pending for this language.