Amendment status not verified — confirm the current text below against the official source.
Notwithstanding anything contained in Chapter II, any Financial establishment which,- (i) defaults in repayment of deposit on maturity along with any benefit in the form of interest bonus, profit or in any other form as promised; or (ii) fails to render service as assured, against the deposit; or (iii) is found indulging in a fraudulent act during business operation, every person including the promoter partner, director, manager or any other person or an employee responsible for the management or conduct of the business or affairs of such Financial Establishment or any person abetting the commission of such acts by the Financial Establishment shall, on conviction, be punished with imprisonment for a term which may extend to ten years and with fine which may extend to five lakh rupees and such Financial Establishment shall also be liable for a fine which may extend to five lakh rupees.; Provided that in the absence of special and adequate reasons recorded in the judgment of the Court, the imprisonment shall not be less than 5 years and the fine shall not be less than two lakh rupees. Explanation-I : For the purposes of this section, a Financial Establishment shall be deemed to have committed a default fraudulently or failed to render specific service fraudulently, if it,- (i) Commits default in repayment of such deposit with such benefit in the form of interest, bonus, profit or in any other form as promised or fails to render any specified service promised against such deposit; or (ii) fails to render any specific service agreed against the deposit with an intention of causing wrongful gain to one person or wrongful loss to another person; or (iii) commits such defaults due to its inability arising out of impracticable or commercially not viable promises made while accepting such deposit or arising out of deployment of money or assets acquired out of the deposits in such a manner as it involves inherent risk in recovery of the same when needed; or The Arunachal Pradesh Extraordinary Gazette, October 6, 2017 5 (iv) commits a fraudulent act as mentioned in Explanation 1, of section 3; Explanation-II:- For the purpose of this section any financial Establishment shall be deemed to be indulging in fraudulent act, if it receives deposits from the public in the manner as mentioned in explanation 1 of section 3. Mandatory disclosure and punishment for non-compliance :