In exercise of the
powers conferred by section 38(1) of the Banning of unregulated Deposit Schemes
Act, 2019 (21 of 2019), the Jharkhand Government herby makes the following
rules, namely:- (1) These rules may be called the "Jharkhand Banning of Unregulated
Deposit Schemes Rules, 2022". (2) It shall extend to the whole of the state of Jharkhand. (3) These rules shall come into force from the date of their publication in
the Official Gazette. (1) In these rules, unless the context otherwise requires:- (a) "Act" means the Banning of Unregulated Deposit Schemes Act,
2019(21 of 2019); (b) "Application" means an application filed by the Competent
Authority under section 14 of the Act, (c) "Competent Authority" means an authority appointed by the
Government under section 7of the Act; (d) "Designated Court" means a Designated Court constituted by
the Government under section 8 of the Act; (e) "Government" means the Government of Jharkhand. (2) The words and expressions used herein and not defined but defined in
the Act Shall have the meanings assigned to them in the Act; The information
and particulars which the competent Authority shall consider for provisionally
attaching the property of the deposit taker shall include, namely:- (a) Any complaint against the promotion or operation of an Unregulated
Deposit Scheme, whether the complainant is a depositor in the said unregulated
Deposit Scheme or not; (b) Any information received from the Central Government, or any State
Government or Union territory Administrations, or any law enforcement authority
or agency or body under the charge of such Government or Administrations
regarding the promotion or operation of an Unregulated Deposit Scheme ; (c) Information of any advertisement, whether in print or electronic media
or both, inducing another person to invest in, or become a member or
participant of any Unregulated Deposit Scheme; and (d) Any other information that the competent Authority has, that a deposit
taker is soliciting or accepting deposits in contravention of the provisions of
the Act. (1) If the Competent Authority or an Officer appointed to assist the
Competent Authority is satisfied that the facts of the case necessitate
identification of the properties or assets acquired either in the name of the
deposit taker or in the name of any other person on behalf of the deposit
taker, the Competent Authority or the officer appointed to assist the Competent
Authority, may procure such details from Police authorities utilizing the
provisions of sub-section (1) of Section 31 or any other authority as deemed
fit or from public through a public notification seeking the details of
properties or assets. (2) Where the information is sought from the public through the public
notification specified in sub-rule (1) of this rule, an advertisement may be
released in two prominent local newspapers within a period of fifteen days of
receipt of report from the Police Authorities informing that a prima facie case
exist. (3) If the Competent Authority, after collecting additional information, is
of the opinion that some additional properties of the deposit taker require to
be attached, it may do so in accordance with Section 7 of the Act. For the purpose of
an investigation into any offence under the Act, the officer-in-charge of a
police station may give written authorisation of search and seizure for the
following, namely:- (a) any record, whether physical or electronic, which is used, intended to
be used, or suspected to be used, in connection with the promotion or operation
of an Unregulated Deposit Scheme; (b) any books of account maintained in connection with an Unregulated
Deposit Scheme: (c) any deposits acquired or suspected to be acquired in connection with
the promotion or operation of an Unregulated Deposit Scheme; (d) any valuable securities maintained or suspected to be maintained in
connection with the promotion or operation of an Unregulated Deposit Scheme; (e) record of any property, whether movable or immovable, acquired either
in the name of the deposit taker or in the name of any other person on behalf
of the deposit taker, which is suspected to be acquired in connection with an
Unregulated Deposit Scheme; (f) record of any account with a bank or financial or market establishment,
which is suspected to be used in connection with an Unregulated Deposit Scheme;
and (g) any other thing which is suspected to be used in connection with an
Unregulated Deposit Scheme. Where the
Competent Authority or any officer is satisfied or has reason to believe that
any property which is liable to be attached under the Act is likely to be
concealed, transferred or dealt in any manner which will result in defeating
the purpose of the Act, it may direct the police officer to seize such property
or where it is not practicable to seize such property make any order to freeze
such property and it shall not be transferred or otherwise disposed of or dealt
with. (1) The person from whose custody records are impounded under sub-section
(8) of section 7 of the Act may make copies thereof, or take extracts there
from, in the presence of an officer authorized by the Competent Authority, at
such place and time as the Competent Authority may appoint in his behalf. (2) The officer appointed under sub-section (2) of section 7 shall retain such
records in his custody without taking approval from the Competent Authority,
for a period up to three months, and if the records are necessary to be
retained beyond the said period, approval of the Competent Authority shall be
required. (3) If the person from whose custody records are impounded objects for any
reason to the records being impounded, he may make an application to the
Competent Authority stating therein the reasons for such objection and
requesting for the return of the records, and the Competent Authority may,
after giving the applicant an opportunity of being heard, pass such orders as
he thinks fit. (4) The officer shall ensure the safe custody of the records impounded and
retained in his custody. (1) Unless and otherwise felt essential, to conduct investigation or
inquiry under subsection (4) of section 7, while conducting investigation or
inquiry, the following notices may be issued by the Competent Authority, namely (i)
Notice for initiation of action in Form A; (ii)
Notice for additional information, if any, required
in Form B; (iii)
Final notice for personal attendance of deposit
taker or other persons and witnesses in Form C. (2) The Order of Provisional attachment shall contain to the extent possible
the following: (i)
Details of Complaint; (ii)
Details of the Deposit Taker or Financial entity; (iii)
Inquiry report from the Police (iv)
Report received from Competent Authority of other
states (v)
Complaints received from public; (vi)
Details of the Proceedings, reasons for attaching
such properties, effective date of attachment (vii)
Copies of the Notices issued or served and delivery
proof, if any; (viii) Summary of the findings; (ix)
Details of property attached, bank account numbers,
amount attached, securities including shares and bonds, attached movable
property, approximate value of such property, and in case of immovable property
the extent of land, survey numbers and boundaries of such property and name of
the title holder of such property; and (x)
Conclusion; and (xi)
Evidences (attach the evidences or proof). (3) The proceedings of the Competent Authority shall record the proceedings
under sub section (4) of section 7 and shall follow due process of law
diligently. The Competent
Authority shall file an application before the Designated Court for making the
provisional attachment absolute, containing the following particulars, namely:- (a) A complete list of the property, money or deposits attached; (b) In case of immoveable property, the name or name and particulars of the
owner of the property, any person who claims to be in possession of the
property, and any other person who has an interest in the said property; (c) The record of the provisionally attached property specified in sub-rule
(6) or rule 4 and the valuation report, if any, specified in sub-rule (8) of
rule 4; (d) A list of the depositors from whom the deposit taker has accepted or
collected deposits; and (e) A list of dues owed to depositors including amounts that may be
realised from sale of any attached property of the deposit taker. (1) The Government shall empanel and notify the list of,- (a) Agencies for valuation of assets and for assisting in selling of assets
to prospective buyers; and (b) Forensic auditors and digital auditors for audit of money trail. (2) The Competent Authority shall utilise the services of such agencies and
auditors for valuation of assets, for selling of assets and for forensic and
digital audit of money trail. (3) The Competent Authority may also utilize the services of Forensic
Auditors or Digital Auditors empanelled by the Indian Banks' Association, for
Audit of Money trail till the State empanels such agencies, wherever felt
required. The Designated
Court while according permission to deposit the fair value of the property in
lieu of the attachment under sub-section (1) of Section 17 may obtain valuation
reports from at least two empanelled valuers while releasing properties (1) The Designated Court may regulate its own procedure and shall be guided
by the principles of natural justice and the procedure contained in the Code of
Civil Procedure, 1908 (2) The designated Court shall- (a) Consider the objections to the show cause notice issued under
sub-section (1) or subsection (2) of section 15 of the Act. (b) Hear the aggrieved person and the Competent Authority or advocates
representing these parties, and (c) Take into account all relevant materials placed on record before it. Where the
Competent Authority or the Officer appointed to assist the Competent Authority
is satisfied or has reason to believe that a person in respect to whom action
is contemplated under the Act has absconded or is concealing himself, the
Competent Authority or the Officers appointed to assist the Competent Authority
shall make a report in writing to the Designated Court for further course of
action. The Competent
Authority or an officer appointed to assist the Competent Authority shall be
entitled to use the services of the Department of Prosecution, legal
practitioners or chartered accountants or any other persons whose services are
necessary for possession and realisation of the assets in question (1) A copy of the order of provisional attachment shall be served on the
owner of the property, or any person who claims to be in possession of the
property or any other person who has an interest in the said property. (2) The order of provisional attachment shall be published in a leading
newspaper (both in vernacular and in English) having wide circulation in the
area or jurisdiction in which the deposit taker is located. (3) Where the Competent Authority is not able to serve the order of
provisional attachment to a person specified in sub-rule (1), then such person
shall be deemed to be served the order by the publication of the order in the
manner provided under sub- rule (2) (4) The Competent Authority shall take possession of the immoveable
property by affixing the order of provisional attachment at a conspicuous place
of such immoveable property. (5) Where the property to be attached is a moveable property, the Competent
Authority shall take actual physical possession of such property and retain it
in his custody or the custody of any other officer appointed to assist him. (6) The Competent Authority shall maintain a record of the property
provisionally attached which shall include details of any expenditure incurred
or any costs of management of the property and of any income received from the
property (7) The Competent Authority shall assess the assets and the liabilities of the
deposit taker and prepare a complete record of depositors from whom the deposit
taker has collected deposits pursuant to an Unregulated Deposit Scheme. (8) The Competent Authority may appoint a valuer for the purposes of
assessing the assets and liabilities of the deposit taker sub-rule (7). (9) Where any property of which possession has been taken is of a
perishable nature, the Competent Authority may sell the same keeping in mind
the best interest of the depositors. (10) The details and proceeds of the sale under sub-rule (9) shall be
entered separately by the Competent Authority and maintained in the record as
specified in sub-rule (6). (1) The Government shall direct the owner of any newspaper or other
publication of any nature either in print or in electronic form, to publish a
full and fair retraction, unequivocally withdrawing any offer, promotion or
inducement made earlier in any advertisement, statement or information to any
person to become a member of any Unregulated Deposit Scheme. (2) The retraction shall be as prominent as the original advertisement,
statement or information and be in such a format and font that immediately
catches the attention of any reader or recipient. (3) The retraction shall be published free of cost within two days from the
date of the direction of the Government. (4) Where the Government is of the view that the retraction published has
not sufficiently engaged the attention of the readers of the newspaper or such
other publication, that Government may direct re-publication of the retraction. All acts done in
pursuance with the provisions of the Jharkhand Protection of Interest of
Depositors (in Financial Establishments), Act, 2011 and the Jharkhand
Protection of Interest of Depositors (in Financial Establishments) Rules 2015
therein in good faith since coming into force of this rules shall not be
invalidated by reasons of the fact that this Act was not in force at that
material point of time. (See rule 4) Notice for initiation of action To ____________________ ____________________ Sir/Madam, Sub: M/s. Based on the
information or reports received it is prima facie apparent that the subject
financial entity or deposit taker is involved in the act which are cognizable
under the provisions of Section 3 of the Act. The Competent
Authority or the Officers appointed to assist the Competent Authority are under
Sub-Section (3) and (4) of the Section 7 of the Act have the same power as
vested in a civil court under the Code of Civil Procedure, 1908 while
conducting investigation or inquiry in respect of the unauthorised deposit
schemes or defaults under the deposit schemes in contravention of Section 3 or
4. In exercise of the
powers under the Act the following is ordered: In connection with
the subject, you are required to submit the following: (a) Details of financial entity, registration of the entity, permissions to
accept deposits from regulators if any, including unique identification number
or Registration and PAN numbers. (b) Details of the Promoters, Managing Directors, Directors, Partners,
Management persons etc., including unique identification number or Registration
and PAN numbers. (c) Latest audited Balance Sheet and Profit and Loss accounts filed. (d) Details of the Regulator and the copy of registration certificates,
permissions to undertake the activity of deposit taking. (e) Produce full details of the Schemes of Deposits under which deposits
are being collected from public. (f) Lost of the Depositors along with Deposit accepted, Rate of interest,
Maturity Date, terms of repayment of interest and principle, any other promises
or assurances or commissions payable etc. (g) Details of defaults if any in repayment of Deposit or any specified
service promised against such deposit along with date of default. (h) Total amount in default and number of depositors affected, if any (i) Reasons for default if any (j) Steps taken or proposed to repay the amount in default (k) Details of the Bank accounts of the financial entity with latest
balance in the accounts. You are hereby
required to submit the full details listed above and duly attested, to my
office on _____________________ at _________________ either in person or
through representative duly authorised in writing in this behalf or produce or
cause to be produced at the said time any documents, accounts and any other
evidence you may rely in support of the activity or the acts in the matter. In case you fail
to comply with the orders of the under signed, it will be deemed that you have
nothing to say in the matter and action under the appropriate provisions of the
Act will be initiated. Failure to be present at the hearing granted, or failure
to present evidence can result in a Best Judgment Assessment or an ex-parte
order. (Note:* Strike
whichever is not applicable) Your faithfully, Date: (See rule 4) Notice for additional information To ____________________ ____________________ Sir/Madam, Sub: M/s Ref: Notice in
Form - A Date: ________________ Based on the
information or reports received it is prima facie apparent that the subject
financial entity or deposit taker is involved in the Act which are cognizable
under the provisions of Section 3 of the Act. The Competent
Authority or the Officers appointed to assist the Competent Authority are under
Sub Section (3) and (4) of the Section 7 of the Act have the same power as
vested in a civil court under the Code of Civil Procedure, 1908 while
conducting investigation or inquiry in respect of the unauthorised deposit
schemes or defaults under the deposit schemes in under Section 3 of the Act. In
exercise of the powers under the Act the following is ordered: (A) Certain further details or clarification or additional information
listed here below are required in connection with the Deposit Scheme* or Chit
funds Scheme* or Default in repayment* or Deposit or any specified service
promised against such deposit on which I would call for additional information,
under the deposit scheme/s by the financial entity which please furnish
immediately. i ii iii iv (B) You are hereby required to attend my office on _______________ at
________________ either in person or through representative duly authorised in
writing in this behalf or produce or cause to be produced at the said time any
documents, accounts and any other evidence you may rely in support of the
activity or the acts in the matter. (C) In case you fail to comply with the orders of the under signed, it will
be deemed that you have nothing to say in the matter and action under the
appropriate provisions of the Act will be initiated. Failure to be present at
the hearing granted, or failure to present evidence can result in a Best
Judgment Assessment or an ex-parte order. (Note:* Strike
whichever is not applicable) Your faithfully, Date: (See rule 4) Notice for additional information To ____________________ ____________________ ____________________ Sir/Madam, Sub: M/s Ref: Notice in
Form - A dated: _______________ Notice in Form - B
dated: _______________ Based on the
information or reports received it is prima facie apparent that the subject
financial entity or deposit taker is involved in the act which are cognizable
under the provisions of Section 3 of the Act. The Competent
Authority or the Officers appointed to assist the Competent Authority are under
Sub Section (3) and (4) of the Section 7 of the Act have the same power as
vested in a civil court under the Code of Civil Procedure, 1908 while
conducting investigation or inquiry in respect of the unauthorised deposit
schemes or defaults under the deposit schemes in under Section 3 of the Act. In
exercise of the powers under the Act the following is ordered: (A) As per Notice in Form A calling details and documents No _________
dated _______________you were asked to submit the details and documents but you
have failed to submit the details and document called for and/or (B) As per Notice in Form B you were asked to furnish certain additional
documents or details and also to attend my office on _______________ at
________________ either in person or through representative duly authorised in
writing on his/her behalf or produce or cause to be produced at the said time
any documents, accounts and any other evidence you may rely in support of the
activity or the acts in the matter, but you have failed to appear before me along
with the details and documents filed for. (C) In view of the your not complying with the orders of the under signed,
a final opportunity is given to you to submit the details and document called
for and/or appear before me along with the details and document called for on
_____________ at ______________ failing which it will be deemed that you have
nothing to say in the matter and action under the appropriate provisions of the
Act will be initiated. Failure to be present at the hearing granted, or failure
to present evidence can result in a Best Judgment Assessment or an ex-parte
order. (Note:* Strike
whichever is not applicable) Your faithfully, Date: By Order and
etc....................................... (See rule 7) INTIMATION TO BE SUBMITTED TO THE AUTHORITY 1. Name of
deposit taker 2. Registered
address of the deposit taker 3. Address of
branches of the deposit taker (if any) 4. Unique
Identification No. of Registration/Incorporation under applicable law. 5. Authority
to carry on deposit taking 6. Name and
address of persons responsible for the management of the deposit taker (CEO
and Directors/Partners, Proprietors/Board). 7. PAN number
of the deposit taker I solemnly affirm to the best of my knowledge and belief that the
information given in this Form is correct, and that nothing material has been
concealed there from. Date Place : Authorised SignatoryJHARKHAND
BANNING OF UNREGULATED DEPOSIT SCHEMES RULES, 2022
PREAMBLE
FORM A
FORM B
FORM C
FORM D