The SIKKIM PROTECTION OF INTERESTS OF DEPOSITORS (IN FINANCIAL ESTABLISHMENTS ) ACT,2009
sikkim · 2009
The scanned source for this Act is imperfect — headings or section boundaries may be off. Verify against the official source.
- S. 1(1) This Act may be called the Sikkim Protection of Interests of Depositors (in Financial Establishments) Act, 2009
- S. 2Section 2 defines key terms used in the Sikkim Protection of Interests of Depositors Act, 2009.
- S. 3Trade license and office
- S. 4Section 4 requires financial establishments to get a trade license and establish an office in Sikkim to operate.
- S. 5Section 5 requires financial establishments to register with the Competent Authority upon obtaining a trade license, with registration becoming void when the license expires.
- S. 6Section 6 mandates financial establishments to seek prior permission from the Competent Authority to accept deposits and allows for future requests to increase deposit limits.
- S. 7furnished
- S. 8Section 8 prohibits Financial Establishments in Sikkim from accepting certain types of deposits and mandates specific written application details for deposits.
- S. 10Section mandates financial establishments to issue detailed receipts for deposits, including key details like date, amount, and interest rate.
- S. 11Section 11 mandates financial establishments to record detailed deposit information for each depositor.
- S. 12Section 12 mandates financial establishments to deposit employee security funds in joint accounts with interest, repayable unless appropriated for employee's duty failure.
- S. 13Section 13 requires financial establishments to provide detailed contact and officer information for registration.
- S. 14Section mandates financial establishments to submit half-yearly returns to the competent authority detailing deposit and maturity amounts.
- S. 15Section 15 mandates financial establishments to publicly announce and seek approval before closing or relocating.
- S. 16Section 16 mandates financial establishments to notify depositors two weeks before deposit maturity and pay the maturity amount on the next bank working day.
- S. 17Section 17 mandates financial establishments to pay interest and imposes penalties for late repayment of deposits.
- S. 18Section 18 allows the Sikkim government to attach assets to protect depositors if a financial establishment defaults or defrauds them.
- S. 19Section 19 directs the Competent Authority to apply to a court for an order to sell attached property and open a separate bank account for realized proceeds.
- S. 20Section 20 penalizes management of defaulting financial establishments with up to ten years imprisonment and fines for failing to return deposits or services.
- S. 21Section 21 allows the Competent Authority to compound certain offences before or after prosecution, with court permission and full repayment to depositors.
- S. 22(1) An offence punishable under this 'Act shall be tried by a Court of Session having jurisdiction
- S. 23Section 23 mandates the court to issue notices to financial establishments and others to show cause for not making attachment orders absolute and to sell attached property by auction.
- S. 24Section 24 allows the court to attach a transferee's property if the Financial Establishment's assets are insufficient to repay depositors and the transfer was not in good faith.
- S. 25Section 25 allows financial establishments to apply to the court for security to replace property attachment, with the court deciding if it cancels or refrains from the attachment order.
- S. 26Section 26 allows the court to order the release of funds from attached property to support applicants and safeguard business interests.
- S. 27Section allows aggrieved parties, including the Competent Authority, to appeal court orders to the High Court within thirty days.
- S. 28Section 28 ensures the Act's provisions override any conflicting laws, customs, or agreements.
- S. 29(i) The Government may make rules for carrying out the provisions of this Act