Section 3 in West Bengal Protection of Interest of Depositors in Financial Establishments Act, 2013
3. Fraudulently default in payment of deposit after a specified period or otherwise by financial establishments.
(1)Where any financial establishment-(a)fails to make any re-payment of deposit along with any benefit in the form of interest, bonus, profit or in any other form, after a specified period, that is, on maturity or otherwise; or(b)fails to render service, product or asset promised against the deposit; or(c)fails to render any specified service agreed against such deposit with intention of causing wrongful gain to one person or wrongful loss to another person; or(d)commits such default due to its inability arising out of impracticable or commercially not viable promises made while accepting such deposit; or(e)commits such default due to 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, such financial establishment and every person including the promoter, partner, director, manager, member, employee or any other person responsible for the management of, or for conducting the business or affairs of such financial establishment, shall be deemed to have committed a default in repayment of deposit fraudulently.(2)Every person including the promoter, partner, director, manager, member, employee or any other person responsible for the management, or for conducting the business or affairs, of a financial establishment who has committed a default in repayment of deposit fraudulently within the meaning of sub-section (1), shall, on conviction, be punishable with imprisonment for life or imprisonment for either description for a term which may extend to ten years and such financial establishment shall also be liable to a fine which may extend to an amount equivalent to five lakh rupees, or where such deposit is quantifiable in terms of money, twice the money involved in such default, whichever is higher;Provided that in the absence of special and adequate reasons recorded in the judgement of the Court, the imprisonment shall not be less than for three years 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.(3)Every offence punishable under sub-section (2), shall he cognizable and non-bailable.(4)No Court shall take cognizance of any offence under this section except with the previous sanction of the Competent Authority within six months from the completion of the investigation with the previous sanction of the Competent Authority.(5)No police official below the rank of Deputy Superintendent of Police or equivalent, having jurisdiction, shall investigate an offence under this Act.(6)All the properties of the financial establishment committing a default in repayment of deposit fraudulently under the provisions of sub-section (1), and the properties of the persons mentioned in sub-section (2), shall be liable to be attached in accordance with the provision of section 5.
