Amendment status not verified — confirm the current text below against the official source.
SA. (I) (i) commits default in repayment of such deposit with such benefits 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) commit$ 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 inhererit risk in recovery of the same when needed; or (iv) commits a fraudulent act as mentioned in Explanation I. of section 3. Explanation II:- For the purposes 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 me_ntioned in Explanation 1 of section 3 ... In the principal Act, after the existing section 5, the following new section 5A shall be inserted, namely :- (a) Before starting operation in the State. of Assam, every Financial Establislunent shall intimate the Deputy Commissioner of the District about the details of its business under his local jurisdiction indicating, with supporting documents, the registration/ permission/ sanctions obtained from the Authorities l~e the Securities and Exchange Board of India (SEBI) or the Reserve Bank of India (RBI) or any other Competent Regulatory Authority of Central or State Government reqU:ired: under the relevant law for the time being in force in such form and in such manner, as may be prescribed by the State Government and obtain his No Objection. (b) While giving his No Objection under sub-section (1) (a), · the Deputy Cqmmissioner, inter a/ia, shall satisfy himself on the adequacy of the capital base of the Financial Establislunent, its business model and sustainability of its business. For the purpose of satisfying himself regarding capital adequacy of the Financial Establishment, the Deputy Commissioner may call for any other document which he, in his judgment, considers necessary for arriving at an objective ~onclusion. (c) Before giving his No-Objection under sub-section (1) (a), the Deputy Commissioner shall also obtain a report from the Superintendent of Police having jurisdiction and for this purpose the Superintendent of Police shall cause such enquires /verifications of the Financial Establishment and the persons associated with it in order to ascertain their genuineness or otherwise, previo~ criminal conduct or acts, if any, and panuneters relevant thereto as per existing laws. 1102 THEASSAMGAZETTE, EXTRAORDINARY, MAY 14, 2013 (2) Before starting operation in Assam, every Financial . Establishment incJuding:those operating on-line through Internet or any other electronic/print media or any other means, shall obtain a trade license from the competent Local Body/Authority under wh9se local jurisdiction the establishment intends to conduct its business operations and no Local Body/ Authority shall issue such trade license to the Financial Establishment without receipt of the No Objection as per sub-section (1) from the Deputy Commissioner of that particular District within which the Local Authority is · empowered. (3) In case of any existing Financial Establishment as on the date of enactment of this Act, the details mentioned in sub - section (1) (a) shall be intimated to the Deputy Commissioner of the concerned District where the Financial Establishment has been perfonning its business operations within 30 days of the co.mmencement of this Act and the requirements under sub- sections (1) (b) and (2) shall be complied with. (4) Every Financial Establishment shall file a monthly statement. about its business transaction in that local area in such form and in such manner, as may be prescribed by the Government to the'Deputy Commissioner of the District under whose local jupsdiction the Financial Establishment is conducting its business operations along with a copy of the periodical statement Which is filed to the SEBI or, as the case may be, RBI or any other Competent Regulatory Authority of Central or State Government. (5) The Deputy Commissioner of the District under whose local jurisdiction the Financial Establishment is conducting its business operations or any other officer authorized by Government may,·~ any time, direct any Financial Establishment carrying on business in the area of juri$diction of the Competent Authority to furnish in such form, at such intervals and within such time, such other statement or information relating to or cormected with the deposits received by it, as may be specified.in a general or a special order. (6) The Deputy Commissioner of the District under whose local jurisdiction the Financial Establishnlent is conducting its business operations or any other officer authorized by the Deputy Commissioner on his behal~ or any other officer authorized by the Government in order to carry out the purposes of this Act shall have power to visit the office premises or other places of any Financial Establishment operating in the State to check the books of account and other documents to ensure that the business of deposit taking is being conducted as per relevant law with permission or sanction of the authority empowered by that law or that such business is not dressed in any form for misleading or cheating the depositors. (7) The Deputy Commissioner of the District under whose local jurisdiction the Financial Establishment is conducting its business operations or any other officer authorized by the Deputy Commissioner on his behalf or any other officer authorized by the Government in order to carry out the ... ·J THEASSAMGAZETFE,.EXTRAORDINARY, MAY 14, 2013 purposes of this ;\ct shall have power to enter and search any premises where it' has reason to believe that any register, book, record, paper, application, infonnation in electronic storage and retrieval device or medium, instrument or proceedings are kept and to inspect them and to take such notes and extracts as it may deem necessary. Every person having in his custody or maintaining such register,, bc;>ok, record, paper, application, instrument or proceedings shall at all reasonable times produce or permit the Competent Authority or any other officer authorized by the Government to inspect them and to take notes and extracts as it may deem-necessary and if necessary seize and impound them : Provided that no residential accommodation (not being a place of business-cum-residence) shall be so entered into and Central searched except on the authority of a search warrant issued by Act 2 a Magistrate having jurisdiction over the area, and all searches of 1974 under this section shall, so far as may be, made in accordance with the provisions of the Code of Criminal Procedure, 1973. (8) For failure to furnish the information or statement under sub- sectioJJ. (1),(2), or (3) or furnishing a wrong or misleading statement, or refusal to produce or pennit inspection of records/documents, etc., as required under sub-section (4) and ( 5), the Deputy Commissioner of the District under whose local jurisdiction the Financial Establishment is conducting its business operations, if satisfied, inay after giving reasonable opportunity to the Financial Establishment in accordance with law, impose a fine of up to Rs. 100000/~ (Rupees one lakh) for such every default. (9) In order to prevent continuation of such fraudulent act or default or non cooperation at the time of inspection with reference to the foregoing provisions or on detection by the inspecting officer that such business is not being conducted as per relevant law with pennission or sanction of the authority empowered by that law or such business is dressed in any form for misleading or cheating the· depositors, the Government ·basing on the report oftbe Deputy Commissioner of the District may, pass such interim ord~r as if may consider appropriate to restrain that establishment from operating in that area, freeze the bank accounts and restrain it from sale, transfer or alter any moveable or immoveable property of that establishment pending confirmation by the Competent Court after making an application by the Competent A~thority under section 4 (iii). (I 0) The fine money imposed under sub-section (8) if not paid within the time fixed in the order may be recovered as an arrear of land revenue. (11) Any Financial Establishment, aggrieved by the order of the Government, may file their objection before the Competent Court while hearing the application made by the Competent Authority under section 4 (iii). Such objection filed by the aggrieved Financial Establishment shall be heard by the Competent Court under section 4 (iii) while decided the matter 1103 1104 THEASSAMGAZETTE,:EXTRAORDINARY, MAY 14, 2013 Amendment of section 6 Substitution of section 14 "Act to override other laws Insertion of new sections 15 and