(1) This Act may be called the 2Telangana Protection of Depositors of Financial Establishments Act, 1999.
(2) It extends to the whole of the State of 2Telangana.
(3) It shall come into force on such date as the Government may, by notification, appoint.
2. In this Act, unless the context otherwise requires,-
(a) “competent authority” means the authority appointed under section 4;
(b) “deposit” means the deposit of a sum of money either in lumpsum or installments made with a financial establishment for a fixed period, for interest or return in any kind;
3[(c) “Financial Establishments” means any person or group of individuals accepting deposit under any scheme or arrangement or in any other manner but does not include a corporation or a co-operative society owned or controlled by any State Government or the Central Government or a
1. The Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 received the assent of the President on
23.06.1999. The said Act in force in the combined State, as on
02.06.2014, has been adapted to the State of Telangana, under section 101 of the Andhra Pradesh Reorganisation Act, 2014 (Central Act 6 of 2014) vide. the Notification issue in G.O.Ms.No.81, Home (Legal) Department, dated 21.05.2016.
2. Substituted by G.O.Ms.No.81, Home (Legal) Department, dated
21.05.2016.
3. Substituted by Act No.12 of 2003.
Short title, extent and commencement.
Definitions.
2 [Act No.17 of 1999] banking company as defined under clause (c) of section 5 of the Banking Regulation Act, 1949;]
(d) “Government” means the State Government of 4Telangana;
(e) “Notification” means the notification published in the 4Telangana Gazette and the word “notified” shall be construed accordingly; and
(f) “prescribed” means prescribed by rules made under this Act.
3. Notwithstanding anything contained in any other law for the time being in force,-
(i) Where, upon complaints received from a depositor or depositors, that any financial establishment defaulted or is likely to default in the return of deposits in cash or kind after maturity, or in any manner agreed upon; or
(ii) Where the Government have reason to believe that any financial establishment is acting in a manner prejudicial to the interests of the depositors with an intention to defraud the depositors;
and if the Government are satisfied that such financial establishment is not likely to return the deposits in cash or kind after maturity, or in any manner agreed upon, the Government may, in order to protect the interests of the depositors of such financial establishment, pass an adinterim order attaching the money or other property alleged to have been procured either in the name of the financial establishment or in the name of any other person from and
4. Substituted by G.O.Ms.No.81, Home (Legal) Department, dated
21.05.2016.
Central Act 10 of 1949.
Attachment of properties on default in respect of deposits.
[Act No.17 of 1999] 3 out of the deposits collected by the financial establishment, or if it transpires that such money or other property is not available for attachment or not sufficient for repayment of the deposits, such other property of the said financial establishment, or the promoter, manager or member of the said financial establishment, as the Government may think fit, and transfer the control over the said money or property to the competent authority.