Bihar Act extended to Chandigarh

Chandigarh, Feb 12 (UNI) The Government of India has extended the Bihar Protection of Interests of Depositors (In Financial Establishments) Act, 2002 to the Union Territory of Chandigarh.

This will enable the Chandigarh Administration to attach the property of financial establishments in default of return of deposit to the depositors.

The main focus of this act, extended to Chandigarh by the Union Ministry of Home Affairs, is to protect the interest of small depositors particularly and public in general by initiating appropriate action against defaulting financial establishments.

The ultimate effect of the legislation is to give relief to depositors by having effective control over the assets of the defaulting companies which acted contrary to the terms of the contract by diverting/siphoning off the public deposits leading to bankruptcy and insolvency of the company and attachment of properties/assets of the defaulting financial companies to settle the claims of depositors.

The cases will be decided by the Designated Court set up for this purpose.

''Financial Establishment'' means any person including association of persons in whatever form it operates, a firm or a company 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 a banking company as defined under clause ( c ) of section 5 of the Banking Regulation Act, 1949.

The Chandigarh Administration will appoint the officer not below the rank of Collector as the competent authority to exercise the control over the moneys and the properties attached by the Government.

The Competent Authority will take such necessary actions as are necessary or expedient for taking physical possession of all the moneys and assets of the concerned financial establishments expeditiously and have all the powers which are necessary for the purpose.

It may also make an application to any Designated Court set up for this purpose. It can seek assistance of any police authority or any other authority for protecting the interest of depositors and effective implementation of this Act.

UNI