(1) Notwithstanding anything contained in any other law for the time being in force,—
(i) where upon complaint received from the depositor or otherwise, the District Magistrate is satisfied that any financial establishments has failed—
(a) to return the deposit after maturity or on demand by the depositor; or
(b) to pay interest or other assured benefit; or
(c) to provide the service promised against such deposit; or
(ii) where the District Magistrate has reason to believe that any financial establishment is acting in a calculated manner detrimental to the interests of the depositor, with intention to defraud them and if the District Magistrate 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 District Magistrate may, in order to protect the interest of the depositors of such financial establishment, after giving an opportunity of hearing and recording Attachment of properties on default or return of deposit.
200 reasons in writing, issue an order by publishing it in the Official Gazette, for attaching the money, property or assets belonging to or 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 the financial establishment, or if it transpires that such money or other property or assets, is not available for attachment or are not sufficient for repayment of the deposits, may order attachment of such other property or assets of the said financial establishment or the personal assets of the promoters, partners, directors, managers, members or any other person of the said financial establishment, as the District Magistrate may deem fit.
(2) On the publication of the order under sub-section (1), all money, properties and assets of the financial establishment and in the name of the persons mentioned therein shall forthwith vest in the competent authority appointed by the District Magistrate pending further order from the designated court.
(3) On receiving a complaint under sub-section (1), the District Magistrate shall forward such complaint, along with his report to the Government at the earliest and shall send a copy of the complaint to the concerned Superintendent of Police in the district for investigation.
(4) The attachment shall be made in the manner provided for attachment of property in execution of a decree under the Code of Civil Procedure, 1908 (Central Act 5 of 1908).
Appointment of competent authority.
5. The District Magistrate may while issuing order under sub-section (1) of section 4, appoint any officer not below the rank of the Assistant Collector First Grade as the competent authority to exercise control over the money and the properties attached by the District Magistrate under section 4.
Duties and powers of competent authority.