[Act
No. 15 of 2016] [05th
November, 2016] An Act to Amend The Odisha Protection Of Interests
Of Depositors (In Financial Establishments) Act, 2011 Be it
enacted by the Legislature of the State of Odisha in the Sixty-seventh Year of
the Republic of India as follows:- This
Act may be called the Odisha Protection of Interests of Depositors (in
Financial Establishments) Amendment Act, 2016. In the
Odisha Protection of Interests of Depositors (in Financial Establishments) Act,
2011 ( Odisha Art 21 of 2013) (hereinafter referred to as the principal
Act), for clause (b) of section 2, the following clause shall be substituted,
namely:- "(b) "deposit" includes and shall be
deemed always to have included any receipt of money, or acceptance of any
valuable commodity, to be returned after a specified period or otherwise,
either in cash or in kind or in the form of a specified service, by any
Financial Establishment, with or without any benefit in the form of interest,
bonus, profit or in any other form, but does not include-- (i)
amount raised by way of share capital or by
any way of debenture, bond or any other instrument covered under the guidelines
given, and regulations made, by the SEBI, established under the Securities and
Exchange Board of India Act, 1992 (15 of 1992); (ii)
amounts contributed as capital by partners of
a firm; (iii) amounts received from a Scheduled Bank or a co-operative
bank or any other banking company as defined in clause (c) of section 5 of the
Banking Regulation Act, 1949 (10 of 1949); (iv)
any amount received from,-- (a)
a State Financial Corporation, or (b)
any public financial institution specified in
clause (72) of section 2 of the Companies Act, 2013 (18 of 2013), or (c)
any other institution that may be specified
by the Government in this behalf; (v)
amount received in the ordinary course of
business by way of,-- (a)
security deposit, (b)
dealership deposit, (c)
earnest money, (d)
advance against order for goods or service; (vi)
any amount received from an individual or a
firm or an association of individuals not being a body corporate, registered
under any enactment relating to money lending which is for the time being in
force in the State; and (vii) any amount received by way of subscriptions in receipt of
a Chit. Explanation
I.- "Chit" has the meaning as assigned to it in clause (b) of section
2 of the Chit Funds Act, 1982 (40 of 1982); Explanation
II.- Any credit given by a seller to a buyer on the sale of any property
(whether movable or immovable) shall not be deemed to be deposit for the
purposes of this clause;". In the
principal Act, in section 4, after sub-section (3), a new sub-section shall be
inserted,-- "(3-a)
where any property attached under section 3 of the Act are transferred to the
Competent Authority is subject to speedy and natural decay or if it is
otherwise expedient so to do, he may sell such property by public auction or
otherwise and credit the sale proceeds in an account opened in a Scheduled Bank
for the purpose and immediately after disposing the said property intimate to
the Designated Court". In the
principal Act, in section 6, for the words "one lakh rupees", the
words "ten lakh rupees" and for the words "two lakh
rupees", the words "one crore rupees" shall be substituted. In the
principal Act, section 7 shall be omitted. In the
principal Act, in section 9,-- (a)
in sub-section (1), after the words "be
sold in public auction", the words, comma and figure "and in so
doing, as regards the issue of notice, the Designated Court shall follow the
procedure and exercise all the powers of a court in issue and service of summons
under the Code of Civil Procedure, 1908 (5 of 1908)" shall be inserted; (b)
in sub-section (2), after the words " in
such property or portion thereof, the words, comma and figure "and in so
doing, as regards the issue of notice, the Designated Court shall follow the
procedure and exercise all the powers of a court in issue and service of
summons under the Code of Civil Procedure, 1908 (5 of 1908)" shall be
inserted; (c)
in sub-section(5), for the word
"investigate", the word "inquire" shall be substituted, (d)
in sub-section (6), for the word
"investigation", the word "inquiry" shall be substituted; (e)
in sub-section (7), for the words "The
Designated Court shall", the words " Subject to the provisions of
subsection (8), the Designated Court shall" shall be substituted and the
following proviso shall be added, namely:- "Provided
that where the money realized is not sufficient to make equitable distribution
among the depositors, the Designated Court may pass order for payment to the
small depositors in preference"; and (f)
after sub-section (7), the following
sub-section and the Explanation shall be inserted, namely:- "(8) If the Government has paid any amount to any
small depositor from out of the Corpus Fund created, if any, for the purpose of
making payment to the said small depositors due to delay in equitable
distribution, of the money attached or realised out of the sale proceeds among
the depositors, under sub-section(7), the Designated Court shall, on an
application by the Competent Authority, pass such order to recover the amount
paid from the said Corpus Fund from out of the said sale proceeds at the first
instance before making such equitable distribution. Explanation.--For
the purpose of this section the expression "small depositor" means
the depositor whose total deposit in a Financial Establishment is not more than
ten thousand rupees and includes the legal heirs of such depositor in case of
his death.". In the
principal Act, in section 10, in sub-section (2), for the word
"investigation" the word "inquiry" shall be substituted.THE ODISHA PROTECTION OF INTERESTS OF DEPOSITORS (IN
FINANCIAL ESTABLISHMENTS) AMENDMENT ACT, 2016
PREAMBLE