1 GOVERNMENT OF JHARKHAND Planning-cum-Finance Department NOTIFICATION Notification No.523 • Dated: 05/08/2015 In exercise of the powers conferred by Section 18 of the Jharkhand Protection of Interests of Depositors (in Financial Establishments) Act, 2011 (Jharkhand Act 18 of 2011), the State Government of Jharkhand hereby makes the following rules namely _
1. Short title - Extent and Commencement:
(i) These rules may be called the Jharkhand Protection of Interest of Depositors (in Financial Establishments) Rules
2015.
(ii) It shall extend to the whole of the State of Jharkhand
(iii) It shall come into force on from the date of notification in official gazette.
2. Definitions In these rules , unless the context otherwise requires
(a)"Act" means the Jharkhand Protection of Interest of Depositors (in Financial Establishments) Act, 2011.
(b) Competent Authority means the officer appointed as the Competent Authority by the Government under Section 5 (1) of the Act.
(C) The Deputy Commissioner means Collector of any district and it also includes / Additional Deputy Commissioner / Additional Collector as authorised by the Jharkhand Government in this behalf.
3. Complaints The Deputy Commissioner of a District shall also be competent to receive the complaint from any person in his District under Sub- Section (1) of Section 4 of the Act and he shall forward the same together with his report to the Government as soon as possible.
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4. Power to issue order to attachment
(1) An order of attachment of any establishment to be issued by the Government under Section 4 of the Act shall be issued by an Officer not below the rank of Secretary to the Government in the Department of Planning and Finance .
(2) The Competent Authority may on issue of the order under subrule (1) of Rule 9 require the necessary assistance of police officer or any officer of the government for the purpose of taking possession of the property in respect of which the attachment order has been made and on such requisition , it shall be the duty of such officer to render the necessary assistance to the Competent Authority.
5. Examination of Complainant and witnesses:
1) Upon the publication of the order of attachment of money or other property by Government Officer under Sub-rule (1) of rule 4 such officer shall immediately forward copies of all the relevant papers and his report relating to such attachment order to the Competent Authority.
(2) The Competent Authority may examine the complainant and witnesses, if any and such examination proceeding shall be recorded in writing.
(3) The Competent Authority shall have power to examine any person or office hearer or employee of the Financial Establishment in respect of which attachment order has been issued by the Government.
6. Publication of the attached money and properties:
Upon the publication of the attachment order by the Government and on the receipt of relevant papers and other record from the Government, the Competent Authority 'shall immediately prepare a register, recording detailed account and description of all the 3 money and properties attached and vested in him under Sub Section
(2) of Section 4 of the Act and shall as far as may be practicable, administer the said money and properties in the best interest of the Depositors and the Financial Establishment as he deems fit.
7. Right of Competent Authority to require information :
(1) The Competent Authority shall have power to call for or require any information about the Financial Establishment or its office bearers including the promoter, director, partner or manager or members of such Financial Establishment or direct any office or authority of the Government or a local authority or any other person, to furnish such information as may be required and such Financial Establishment or its office bearer or promoter, director, partner or manager or members of such Financial Establishment or office or authority of the Government or local authority or any other person, shall forth with furnish such information to the Competent Authority.
(2) Any Financial Establishment / Institution intending to establish an office and operate in a district in the State of Jharkhand shall furnish information in writing to the office of the Deputy Commissioner or any officer authorized by the State Government in this behalf and District Police Superintendent about the details of its activities, areas of operation and /or business supported by all necessary papers. This information shall also include its registration by the Registrar of Companies of the State concerned as also about the registration and the license obtained from the Reserve Bank of India . Securities and Exchange Board of India or any other regulatory authority for the purpose aforesaid_ with details of its office structure and specific location / address.
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(3) An office in charge of the Police station when required by the Competent. Authority shall take all steps including inquiry, investigation or survey in respect of any person , place, property, documents’, books of account etc. of the Financial Establishment or promoter, director, manager, offices , servants or member of such Financial Establishment and submit his report to the Competent Authority.
(4) The rules confer upon the designated court the power to penalize financial establishments found guilty of fraudulent default by sentencing them to ten years of imprisonment and imposing a fine upto one lac of rupees or where such default relates to a quantifiable sum of money twice the amount of such sum, whichever is more.
8. Powers of Competent Authority relating to absconding person:
Where the Competent Authority is satisfied or has reason to believe that a person in respect to whom an action is contemplated under the Act has absconded or is likely to abscond or is concealing himself the Competent Authority shall immediately send a report in writing to the Designated Court.
9. Power of Competent Authority to sell or dispose of property :
(1) Where any property attached and vested in the Competent Authority under the provisions of the Act is subject to speedy and natural decay and if it is expedient to dispose of that property the Competent Authority may after obtaining permission of the Designated Court sell or otherwise dispose of the said property and shall deposit the sell proceeds in the account of the Financial Establishment .
(2) The Competent Authority shall after disposing the said property under Sub-Rule (1) report the same to the Designated Court.
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10. Maintenance of the record of money or property attached:
(i) All money or property attached by the Government and vested in the Competent Authority under the provisions of the act shall be sealed by the Competent Authority and shall be in the custody of the Competent Authority.
(ii) The Competent Authority shall maintain the record of all The income received and expenditure incurred on attachment of the property and management and disposal of the same and furnish the details of the same to the Designated court from time to time.
(11) The Competent Authority shall render such assistance • to the Special Public Prosecutor /Special Government Pleader in conducting the cases in the Designated Court as may be required.
By the order and the name of Governor of Jharkhand.
(Amit Khare) Principal Secretary Memo No. Banking(Videyak)21/2012 523 Ranchi, Date 05/08/2015 Copy forwarded to: Superintendent Government Press, Doranda, Ranchi for publication in Extra Ordinary Gazette . Please send 100 copies to this Gazette to undersigned (Amit Khare) Principal Secretary Memo No. Banking(Videyak)21/2012 523 Ranchi, Date 05/08/2015 Copy forwarded to: Chief Secretary, Jharkhand, Ranchi / All Additional Chief Secretary, Jharkhand / Director General of Police, Jharkhand/ Principal Secretaries / Secretaries to Government of Jharkhand / All Head of the Department, Jharkhand / All Divisional Commissioners, Jharkhand / All Zonal Inspector General of Police, Jharkhand / All Deputy Inspector General of Police, Jharkhand / All Deputy Commissioners, Jharkhand / All Senior Superintendents of Police, Jharkhand / All Superintendent of Police, Jharkhand for information and necessary action.
(Amit Khare) Principal Secretary