Section 3 in Jharkhand Protection of Interest of depositors (in Financial Establishments), Act, 2011
3. Fraudulent default by Financial Establishment.
- Where any Financial Establishment, having fraudulently or dishonestly, defaults in repayment of any deposit on maturity along with any benefit in the form of interest, bonus or profit, or in any other form as promised or fraudulently or dishonestly fails to reader service as assured against the deposit, the Financial Establishment and every person including the promoter, partner, director, manager or any other person or any employee responsible for the management of or conducting the business or affairs of such Financial Establishment shall, on convention, be punished with imprisonment for term up to ten years and with fine up to one lakh of rupees or where such default relates to a quantifiable sum of money twice amount of such sum, whichever is more:Provided that in absence of special and adequate reasons to be recorded in the judgment of the Court, the imprisonment shall not be for less than three years and the fine shall not be less than fifty thousand rupees.Explanation - I. - For the purpose of the section, a Financial Establishment, which commits default in repayment of any deposit with such benefits in the form of interest, bonus, profit or in any other terms as promised or falls to render any specified service agreed against the deposit with an intention of causing wrongful gain to one person or wrongful loss to another person or commits such defaults due to its inability arising out of impracticable or commercially not viable promises made while accepting such deposit or arising out 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.Explanation - II. - When a question arises whether any Financial Establishment has committed fraudulent default within the meaning of the Section, the Court shall presume that such Financial Establishment has committed the default fraudulently.
