Attachment of properties on default of return of deposits

§4

Summary

(1) Notwithstanding anything contained in any other law for the time being in force,- (a) Where upon complaints received from the depositors or otherwise the State Government is satisfied that any Financial Establishment has failed,- (i) to return the deposit after maturity or on demand by the depositors; or (ii) to pay interest or other assured benefit; or (iii) to provide the service promised against such deposit; or (b) Where the State Government has reason to believe that any Financial Establishment is acting in a calculated manner detrimental to the interest of the depositors with an intention to defraud them and if the State Government is satisfied that such Financial Establishment is not likely to return the deposits or make payment of interest or other benefits assured or to provide the services against which the deposit is received. The State Government may, after recording reasons in writing, issue an order by publishing it in the Gazette attaching the money or other property believed to have been acquired by such, Financial Establishment either in its own name or in the name of any other person from and out of the deposits collected by Financial Establishment. (2) On the publication of the Order under clause (b) of sub-section (1), all the properties and assets of the Financial Establishment shall forthwith vest in the Competent Authority appointed by the State Government, such vesting shall remain vested as such unless the Designated Court orders otherwise. (3) The Collector of the District concerned shall be competent to receive the complaints under sub-section (I) and shall forward the same together with his report to the State Government at the earliest and shall send a copy of the complaint also to the concerned Police Superintendent of the district for investigation.

(1) Notwithstanding anything contained in any other law for the time being in force,- (a) Where upon complaints received from the depositors or otherwise the State Government is satisfied that any Financial Establishment has failed,- (i) to return the deposit after maturity or on demand by the depositors; or (ii) to pay interest or other assured benefit; or (iii) to provide the service promised against such deposit; or (b) Where the State Government has reason to believe that any Financial Establishment is acting in a calculated manner detrimental to the interest of the depositors with an intention to defraud them and if the State Government is satisfied that such Financial Establishment is not likely to return the deposits or make payment of interest or other benefits assured or to provide the services against which the deposit is received. The State Government may, after recording reasons in writing, issue an order by publishing it in the Gazette attaching the money or other property believed to have been acquired by such, Financial Establishment either in its own name or in the name of any other person from and out of the deposits collected by Financial Establishment. (2) On the publication of the Order under clause (b) of sub-section (1), all the properties and assets of the Financial Establishment shall forthwith vest in the Competent Authority appointed by the State Government, such vesting shall remain vested as such unless the Designated Court orders otherwise. (3) The Collector of the District concerned shall be competent to receive the complaints under sub-section (I) and shall forward the same together with his report to the State Government at the earliest and shall send a copy of the complaint also to the concerned Police Superintendent of the district for investigation.

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