Amendment status not verified — confirm the current text below against the official source.
Fraudulent default by Financial Establishment. deemed to be a deposit for the purposes of this clause; (e) “Designated Court” means the Designated Court constituted under section 10; (f) "Financial establishment” means a person or a group ~of persons 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 the Government of any Union territory or a banking company as defined under clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (g) "Government" means the Government of the National Capital Territory of Delhi; (h) “Lieutenant Governor” means the Administrator of the . National Capital Territory of Delhi appointed by the President under article 239 AA of the Constitution. Any financial establishment, which fraudulently defaults any repayment of deposit on maturity along with any benefit in the form of interest, bonus, profit or in any other form as promised or fraudulently fails to render service as assured against the deposit, every person including the promoter, partner, director, manager or any other person or an cmployce responsible for the management of or conducting of the business or affairs of such financial establishments shall, on conviction, be punished with imprisonment for a term which may extend to six years and with fine which may extend to one lakh rupecs and such financial establishment shall also be liable for a fine which may extend to one lakh rupees or where such deposit is quantifiable in terms of money, twice the ~ amount involved in such default, whichever is more: Provided that in the absence of special and adequate reasons recorded in the judgement of the Court, the imprisonment shall not be less than six months and the fine shall not be less than twenty thousand rupees as against each individual and not less than one lakh rupees against such financial establishment. Explanation:--For the — purpe of this scction, a financial establishment, which commits default in repayment of such deposit with such benefits in the form of interest, bonus, profit or in any other form S promised or fails to render any specified service proinised against such deposit, or fails to render any specific service agreed against the deposit with an intention of causing wrongful gain o one person or wrongful loss to another person or commits such ‘defaults duc to its inability arising out of impracticable or commercially not viable promises made while accepting such deposit or arising oul of deployment of money or assets acquired out of the deposits in such a manner as it involves inherent risk in recovering, the same when needed, shall be deemed to have committed a default or failed to render the specific service, fraudulently. =