The ASSAM PROTECTION OF INTERESTS OF DEPOSITORS (IN FINANCIAL ESTABLISHMENTS) ACT, 2000
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# The Assatn Gazette

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###### . EXTRAORDINARY

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'.. **PUBUSHED BY AUTHORITY**

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No. 158 Dispur, Frid::iy, 2i~ t Jul y, 2000, 30th Asadha

i92 2 IS. E. J

GOVERNMEN"l OF ASSAM

###### .,

OR DERS BY THE GOVERNOR
##### .

. "

LEGISLATIVE DEPARTMENT : LEGISLATIVE BRANCH

###### NOTIFlCATfON

The 9th May, 2000

No. LGL.146/99/13 :-The following ,Act of the Assam

L~gislative Assembly which received the assent of the
Governor is ·h ereby published for genen.l information.


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ASSAM ACT No. VI OF 2000

(Received the assent of the Governor on 6th May, 2000)
###### THE ASSAM PROTECTION OF INTERESTS OF DEPOSr
TORS (IN FINANCIAL ESTABLISHMENTS) ACT, 2000

AN
ACT
to protect the deposits made by the public in the Financial
Establishments and matters relating thereto.
###### It is hereby enacted in the Fifty-first Year of the

Republic 0f India as follows :--
###### CHAPTER -I

Short title , 1 (i) Th is Act may be called the Assam
extent            - d '
commen ce- Protection of Interests of Deposi-
ment . tors (in Financial Establishments) Act,

2000.

{ii) It extends to the whole of Assam.
(iii) It shall come into force at once-:-+

Definition 2. In this Act, unless the context other-
wise requires, --

(i) 'Competent authority' means the
authority appointed under section 4;

(ii) 'Deposit' mean1 the deposit of a

sum of mc•ney made with a Finan-
cial Establishment for a fixed period,
for interest or return in any kind,

(iii) 'Financial Establishment' means an indi-

vidual, an association of individuals or
a firm carrying on business of receiving
deposits under any scheme or arrapge-
ment or in any other manner but
does not include a company registered

                                            - A l 95 CcQtral Act
un d er t e Co mpames h ct, 6 or a No. 1 of
Corporation or a Cc-operative Society 1956.
owned or controlled by any State

Government or the Central Govern-
ment or a Banking Company as de-
1 [A ]
fined under Section !'J(c) of the ~~~r~ 194~

Banking Regulati0n Act, 1949 or a
non-banking financial company as
defined in clause (f) of Section 45--1
of the Reserve Bank of India Act,
Q 0 enra 8 1 [At ]c
###### L34; No. 2 of

(iv) 'Government' means the State Govern- 1934.

ment of Assam.


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    - -~ASSAM GAZETTE :EXTRAOR_!?INAR~ !_ULY 21, 2000 575

CHAPTER- II

Attachment 3. Notwithstanding any-thing contained in any
of proper-
ties on de- other law for the time being in force :-

fault of re·

turn of
deposits. (i) Where, upon complaints received from a

depositor or number c•f depositors, that any
Financial Establishment defaults the return

###### cf deposits after maturity, or

(ii) Where the Government have reason to be-
lieve that .any Financial Establishment is
acting in a calculated manner with an in-
tention to defraud the depositors and if
the G0vernmc nt are satisfied that such
Financial Establishment is not likely to
return the deposits, the Government may
in order to protect the interests of the de-
positors of such Financial Establishment,
pass an ad-interim order attaching the

money er other property alleged to have
been prc cured either in the name of the

.. Financial Establishment or in the name of

any other pcrscn from and out of the depos~t
collected by the Financial Establishment,

or if it transpires that such money or other

preperty is not available for attachment
or not sufficient for repayment of the de-
posits, such other property of the said Fin-
ancial Establishment or the promoter,
manager or member of the said Financial
Establishment as the Government may think
fit and transfer the control over the said
money or property to tho competent au-
thority.

authority, Competent 4. (i) The Government may, by notification, ap-
#### . point an authority hereinafter called ''the

Competent authority" to exercise control

over the properties attached by the Govern-
###### ment under Section 3.

, (ii) The d~mr:etent authority sha11 have such

oth~r powers as may Ge necessary for oar-

rying out the purposes of this Act·


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###### 576 THE ASSAM GAZETTE EXTRAORDINARY JULY 21 , 2oei>

' '

(iii) Upon receipt of the orders of the Gov-
ernment under Section 3, the Competent authority
shall apply within fifteen days to the Court of
District and Session Judge of the competent juris-
diction for making the ad-interim order of attachment
absolute.

(iv) An application under sub- ~. ection {iii) 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, js 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 per:::.ons in whose name such
property is believed to have been invested or
purchased out of the deposits or any other pro-
perty attached under Section 3.

###### CHAPTER-III

Puuishment 5. Notwithstanding anything cont~ined in Chapter
for default II, wrere any Financial Establisment defaults

iu Repay-
ment of the return of the deposit or defaults the pay ~

dero~it and

mc. nt of interest on the deposit, every person

interests.

responsible for the management of the affairs
###### of the Financial Establisment shall be punished
with imprisonment for a term which may
extend to ten years and with fine which extend
to one lakh of rupees and such Financial
Establishment is also liable for fine which may
extend to one lakh of rupees.

###### CHAPTER-iV

Competent 6. (i) No Court, other than the Co.urt of Bft?ttjct
Court. and Sessions Judge shaJl have jurisdiction· in

respect of any matter to which the provisions of
this Act apply.

(ii) Any pending ease in any other Court to
which the provisions of this Act apply, shall
' tand transferred to the Court of District and
Sessk ns J udge of competent jurisdiction.


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(iii) The Court of District and Sessions

###### Judge 0n application by the Com-

_petent av.thority ps ss such order or
issue such direction as may be nece-

ssary for the equitable distribution

t

among t i ~c depositors of the money
realised from out of the property

attached·

Power of 7. (i) Upcn receipt of an application under
the Court
of the Dis- Section 4·, the Court of the District

tri ct and and Sessions Judge shall i11sue to

Scsaion s
Judge. the Financial Establishment or to any

###### other pason whose pro perty is atta-
ched by the Govt rnment under Sec-
###### tion 3, a notice accompanied by an
application and affidavit and the
evidence, if any, recorded, calling
upon him to show cause on a date
to be specified in the notice as to
why the order of att?.chment should
not be made absolute.

(ii) The Court of District ?.nd Sessions

Judge shall also issue such notice
to all other persons represented to

###### • it as having or being likely to claim
 any interest or title in the property of the Financial Establishment or
the pcxson to whom the notice is
issued calling upon such person to
appear on the same date specified
in the notice and make objection
###### if he so desires to attachment of
the property or any pc;rtion thereof
on the ground that he has an inte-
rest in such property or portion

###### ,.

thereof.

(iii-) Any person claiming an interest in

_1_ _the_ property attaehed or any portion

###### th.ereof may, notwithstanding that no notice has been served upon him
under this section, make ~n objec-
tion as aforesaid to the Gourt of
District and Sessions Judge at any
time before an order is passed under

sub-section (iv) or sub-section (vi).


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###### ------ ----·-- - - -- ------ -

(iv) If 11 0 cause is shown and no

r bjcctions are made c n c·r before the speci-
fied date the Court of District and Sessions
Judgl:' ~ hall forthwith pass an ordc r maki-

ng tl·e ad-interim order of attachment
###### absdute .

(v) If cause is shown c.r any objection Central Act
. d _c_ "d h c                - f n· v of 190g.
is ma e as a1ort.sa1 t e ourt o 1str-
ict and Session Judge shall proceed to in-

vcstig::).tc the same and in so doing, as
regards the examina ti0n of the parties and

            - n all other respects, the _Cc urt_ cf Distri-
ct 2.nd Sessions Judge sh2.ll, subject to the
pre.visions of tt is Act, follow the procedure
and exercise ?.11 the powas of a Cc urt in
hearing a suit under the Code ef Civil
Procedure, 1908 and any person making
###### an objectioP shall be required to adduce
evidence to shc.w that on the date of the

attc:d ment he had some interest in the

property attached.

(vi) After investiga.tion under sub-sec-
tion (v), tbe Court of District and Sessi-
ons Judge shall pass an vrder making the
ad-interim order of attachment absolute or
varying it by releasing a portion c·f the
property from 2.ttachment or cancelling
the ad-interim order of attachment :

Provided that the Court of District
and Sessions Judge shall not' release from
attachment any interest, which it is satis-
fied that the Financial Establishment or
the person referred to in the sub-section
(i ), has in the property unless it _ is also

satisfied that there will remain under
attachment an amount or property of value
not less than the-value that is ~required for
re-payment to the depositors· of such Fin·
ancial Establishmc nt.


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Attachmc~t 8. (i) Where the assets available for
of properties h f F'          - 1 E bl' h
malalde attac ment o a 1nancia sta JS ment
Traasfcrees. or other person ref erred to in Section 3
are found to be less than the amount
###### or value which such Financial Establish-
ment is required to repay to the de-
positors and where the Court of District
and Sessions Judge is satisfied by affida-
vit or otherwise that there is reasonable
cause for believing that the said Finan-
cial Establishment br.s transferred (whether
after the commencement of thi1 Act or
not) any of the property otherwise than
in good faith and for consideration the
Court of District and Sessions Judge may,
by notice, require any transferee of such
property (whether or nor he received the
property directly from the said Financial
Establishment) to appear on a date to
be specified in the notice and shew cause
why so much of the transferee's property
as is equivalent to the proper value of
the property transferred should not be
attached.

(ii) Where the said transf erec does not
appear and show cause on the speci-
fied date or where after investiga-

..

tic n in the manner provided in sub-
section (v) of Section 7, the Court

of District and Sessions Judge is
satisfied that the transfer of the
property to the said transferee was
not in good faith and for considera-
tion, the Court of District and Se1s~

ions Judge shall order the attachment
###### of so much of the said transferee's
property as is in the opinion of the

Court of District and Sessions Judge
equivalent to the proper value of
the property transferred.

S 9. Any Financial Establiament or
11[ecurifty ] [in ]
cuo h h b .
attachmeat. person W cse property as eon or is

a bout to be attached under this Act, may,
###### at any time, apply to the Court


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###### of District and sessions Judge for perm-
1ss1on to give security in lieu of such

attachment and where the security offered
###### and given is in the opinion of the Court of District and Session Judge satisfactory
and sufficient, it may cancel the ad-in

terim order of attachment or, as the case
may be, refrain from passing the order of
attachment.
Administra- 16. The Court of District and Ses-

pcrty ti on 'lf atta-pro- s1ons • J u. ge I!lay, d on th . e app }" 1ca t" ion o f

cned. any person mterested m any property
attached under this Act and after giving
the Competent authmity an opportunity
###### of being h.eard, make such orders as. the

Court of District and Session Judge

considers just and reasonable for -

(i) providing from such of ,the prG-

perty attached as the applicant claims,

an interest in such , sums as may be

reasonably necessary for the maintenance
o:f the applicant and of his family and
for expenses connected with the defence
###### of the applicant where criminal proce-

edings have been instituted against him in
the -Court of District and Sessions Judge

u r. der Seetion 5 : . -

, .

(ii) safeguarding so far so may be
practicable the interest of any busine ~ s affec-
ted by the attachment and par.ticularly in
the interest of any partners in such
business.

Appeal 11. Any person including the Compe-

tent auth( rity:, if aggrieved by ::in order ( f
###### the Court of District and Sessions judge, may
appeal to the High Court within thirty days
from the date cf order.

Special 12. Government shall, _by_ notification,

Public
Prosecu- app :)int an Advocate of not less than ten
tor. years standing as a Special Public Prosecu" . ..

tor for the purpos·.:- of conducting .the :ca:s:es.

falling under this Act fo            - he Court Of
District and Session J~1dge . ...


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Procedure 13. (1) The Gourt of District and Central Act
and powers c:o. . • ~ J dg k . f 2 of 1974,
ofthe court "1'.eSs1ons u e may ta . e congmzance o
or Disrtjct the offence without the accused being Go-
and Sessions ' · d         - _c_         - 1 d • t · h
Judge resar-mmrtte to 1t 1or tria an lll rymg t e
ding offences a.c.cused per~on, shall fallow the procedure

pre.scrib.ctcL in the_ Goqe of Crimin2:1 Proce-

dure, 19;73 for the trial of warrant cases by
l\Iagis rra tes.

(ii) The provisions of the Code of Central Act

Criminal Procedure, 19 73 shall apply to [2 ] oft 9[7]4,
the procedings under this Act.

CHAPTER-V

Act t O over- 14.. Save a.§ e>therwise provided in this

ri oe other Act, the provisions of this Act shall have
law~ . effect notwithstanding anything consistant

therewith contained in any other law for
###### the ti~~ being 'in force ·or any custom or

usa~!' c?~ . any in:~t!°~i_tien' ha~i-~g effect by
virture of any such law.

P_,wer to 15. (i) The Government may make rules
make rule.

for carrying out the provisions of this Act.

(ii) All rules made under this Act
shall be published in the Assam Gazette
and unless they are expressed to come in
to force on a particular day, shall come
into force on the day on which they are
so published.

{iii) All notifications issued under
this Act shall, unless they are expressed
to come into force on a particular day,
shall come into force on the day on
which they are published.
(iv) All rules made by the State Go-
vernment under this Act shall, as soon as
may be after they are made, be laid be-
fore the State Legislative Assembly while
it is in session, for a total period of not
less than fourteen days which may be com-
prised in one session or two or more succe-
ssive sessions, and shall. unless some later


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dat e is appointed, take            - effect from the
date of th~ir publicati_on in~ the Official

Gazette subject to ~ such modification or .

annylments as the Legislative Assembly
may, during the said p'eriod agree to make
so hcwever, that any .._such modification or

~nnulment shall be. ·without prejudice to
the validity of anything previously done
###### thereunder.

'} r

###### _ M· K. DEKA,

Secretary to the Govt . of Assam,

. 5 _'I_ Legislative Depal'tment

G UWAHATI-Printed ~nd published by the **_Dy. DireCtor_** (Ptg. & Sty.).,

                            - Dir~torate of Ptg. **and** Sty., Assam; Guwahati-21
(Eu Gazette) No .. 315-500-400-21-7-2000.

_('_ c ~ 11                             -

###### ..

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