The NBFC Act 2002 & Rules 2004
bihar · 2002
The scanned source for this Act is imperfect — headings or section boundaries may be off. Verify against the official source.
- S. 1The Bihar Protection of Interest of Depositors (in Financial Establishments) Rules, 2004, apply to the whole of Bihar and start immediately.
- S. 2Section 2 defines key terms used in the NBFC Act 2002, specifying what constitutes a deposit and what does not.
- S. 3Section 3 penalizes fraudulent defaults by financial establishments, imposing imprisonment and fines on responsible individuals.
- S. 4Section 4 allows the government to attach properties of defaulting NBFCs to protect depositors' interests.
- S. 5Section 5 appoints government officers as Competent Authorities to control and manage financial establishment assets and properties.
- S. 6Section 6 mandates the Competent Authority to assess a financial establishment's assets and liabilities, and invite claims from creditors and depositors.
- S. 7Section 7 empowers the Competent Authority to request information from NBFCs and their officials, and mandates disclosures for new operations in Bihar.
- S. 8Section 8 outlines the Designated Court's powers to confirm and enforce property attachment orders in NBFC cases.
- S. 9Section 9 grants the Designated Court authority to direct asset realization and ensure depositor payments for NBFCs.
- S. 10Section 10 allows courts to attach property of transferees deemed to have received assets in bad faith to recover funds owed by a financial establishment.
- S. 11Section 11 mandates the Competent Authority to assist Special Public Prosecutors in conducting cases in Designated Courts.
- S. 12Section 12 allows the Designated Court to order the release of necessary funds from attached property for the maintenance of the applicant and safeguarding business interests.
- S. 13Section 13 allows appeals to the High Court within 60 days against final orders or convictions by the Designated Court.
- S. 14Section 14 allows the government to appoint experienced advocates as Special Public Prosecutors for NBFC cases.
- S. 15Section 15 outlines the procedure and powers of the Designated Court in trying offences under the NBFC Act 2002.
- S. 16Act to override other laws: Save as otherwise provided in this Act, the provisions of this Act shall
- S. 17Section 17 protects government entities and officials from lawsuits for actions taken in good faith under the NBFC Act.
- S. 18Section 18 empowers the State Government to create rules for the NBFC Act and mandates legislative review and potential modification.
- S. 19Section 19 grants the government power to issue orders to resolve any difficulties arising in implementing the NBFC Act 2002.