Amendment status not verified — confirm the current text below against the official source.
Attachment of property on default of return of deposits.- Notwithstanding anything contained in any other law for the time being in force,- (a) where complaints are received by the Government from a number of depositors, that any fmancial establishment defaults the return of deposits after maturity, or fails to pay interest on deposit or where the - deposit is for providing service or properties, fails to provide such service or properties, for which deposit has been made; or (b) where the Government have reason to believe that any fmancial establishment is acting with an intention to defraud the depositors; and if the Government are satisfied that such financial establishment is not likely to return the deposits or to make payment of interest or to provide the service or to provide properties, the Govenunent may, in order to protect the interests of the depositors of such financial establishment, pass an ad-interim order, attaching any property purchased in the name of the financial establishment or in the name of any other person or establishment or the money or property alleged to have been procured either in the name of the financial establishment or in the name of any other person from and out of the deposits collected by the financial establishment, if it reasonably feels that such money or other property is not available for attachment or not sufficient for repayment of the deposits, the property of the said financial establishment or of the promoter, partner, director, manager or member of the said financial establishment or a person who has borrowed money from the fmancial establishment and defaulted, to the extent of his default or, such other properties of that person in whose name properties were purchased from and out of the deposits collected by the financial e'stablishment, as the Government may. think fit, and transfer the control over the said money or property to the competent authority. 4