Regulation of Financial Establishment operations

(1) Before starting operation in Tripura, every financial establishment shall intimate the Competent Authority about the details of its business in the local jurisdiction of such Authority indicating, with supporting documents, the permission / sanction of the Authority like Securities and Exchange Board of India (SEBI) or the Reserve Bank of India (RBI) or any other authority of Central or State Government required under the relevant law for the time being in force in such form and in such manner, as may be prescribed by the State Government. (2) Every financial establishment shall file a monthly statement about its business transaction in that local area in such form and in such manner, as may be prescribed by the State Government to the Competent Authority along with a copy of the periodical statement which is filed to the SEBI or, as the case may be, RBI or any other authority of Central or State Government. (3) The Government may authorize any officer of such rank as it may prescribe to direct any financial establishment acting in its local jurisdiction to furnish such other statement or information relating to or connected with the deposits received by it. (4) The Government may authorize any officer of such rank as it may prescribe to visit the office premises or other places of any financial establishment Operating in the State to check the books of account and other documents to ensure that the business of deposit taking is being conducted as per relevant law with permission or sanction of the authority empowered by that law or that such business is not dressed in any form for misleading or cheating the depositors. Illustration :- If a deposit taking business is dressed or camouflage in the form of any other business like the business of real-estate, plantation, tours and travels, supply of any valuable goods or service or gift thereof etc. shall be deemed to be a fraudulent act for the purpose of this Act. (5) For failure to furnish the intimation or statement under sub-section 1, 2 or 3 or furnishing a wrong or misleading statement the competent authority, if satisfied may after giving reasonable opportunity to the Financial Establishment in accordance with law, impose a fine of Rs. 25,000/- (Rupees Twenty Five thousand) for such every default. (6) Upon receipt of a report from the officer authorized under sub-section 4 or otherwise if the competent is satisfied that the Financial Establishment is acting in a fraudulent manner in violation of the provision of relevant law may file a Complaint alleging commission of an offence under Section 3. In order to prevent continuation of such fraudulent act or default or non cooperation at the time of inspection with reference to sub-section 4 or on detection the inspecting officer that such business is not being conducted as per relevant law with permission or sanction of the authority empowered by that law or such business is dressed in any form for misleading or cheating the depositors, the competent authority may also pass such interim order as he may consider appropriate to restrain that establishment from operating in that area, freeze the bank accounts and restrain it from sale, transfer or alter any movable or immovable property of that establishment pending confirmation by the State Government. (7) The fine money imposed under sub-section 5 if not paid within the time fixed in the order may be recovered as arrear of land revenue. (8) Any financial establishment, aggrieved by the order of the competent authority may file appeal to the State Government within a month from date of the order. Such appeal shall be heard by an officer not below the rank of a Secretary as the State Government may authorize provided that no appeal will be admitted without deposition of the amount of penalty ordered by the competent authority or reduced amount if any by the appellate authority.