Section 8 in Arunachal Pradesh Protection of Interests of Depositors (In Financial Establishments) Act, 2017
8. Mandatory disclosure and punishment for non-compliance.
(1)(a)Before starting operation in the State of Arunachal Pradesh, every Financial Establishment shall intimate the Deputy Commissioner of the District about the details of its business under his local jurisdiction indicating, with supporting documents, the registration/ permission/sanctions obtained from the authorities like the Securities and Exchange Board of India (SEBI) or the Reserve Bank of India (RBI) or any other Competent Regulatory authority of Central or State Government required under the relevant law for the time being in force in such form and in such manner, as may be prescribed by the State Government and obtain No objection certificate thereto.(b)While giving his No Objection Certificate under clause (a) of sub-section (1), the Deputy Commissioner, inter alia, shall satisfy himself on the adequacy of the capital base of the Financial Establishment, its business model and sustainability of its business. For the purpose of satisfying himself regarding capital adequacy of the Financial Establishment, the Deputy Commissioner may call for any other document which he, in his judgment, considers necessary for arriving at an objective conclusion.(c)Before giving his No-Objection Certificate under clause (a) of sub-section (1), the Deputy Commissioner shall collect a report from the Superintendent of Police having jurisdiction for this purpose. The Superintendent of Police shall cause such enquiries/ verifications of the Financial Establishment and the persons associated with it in order to ascertain their genuineness or otherwise, previous criminal conduct or acts, if any, and parameters relevant thereto as per existing laws.(2)Before starting operation in Arunachal Pradesh, every Financial Establishment including those operating on-line through internet or any other electronic/print media or any other means, shall obtain a trade license from the competent Local Body/Authority under whose local jurisdiction the establishment intends to conduct its business operations and no Local Body/Authority shall issue such trade license to the Financial Establishment without receipt of the No Objection Certificate as per sub-section (1) from the Deputy Commissioner of that particular District within which the Local Authority is empowered.(3)In case of any existing Financial Establishment as on the date of enactment of this Act, the details mentioned in clause (a) of sub-section (1) shall be intimated to the Deputy Commissioner of the concerned District where the Financial Establishment has been performing its business operation within 30 days of the commencement of this Act and the requirements under clause (b) of sub- sections (1) and (2) shall be complied with.(4)Every Financial Establishment shall file a monthly statement about its business transaction in that local area in such form and in such manner, as may be prescribed to the Deputy Commissioner of the District under whose local jurisdiction the Financial Establishment is conducting its business operations along with a copy of the periodical statement which is filed to the SEBI or, as the case may be, RBI or any other competent Regulatory Authority of Central or State Government .(5)The Deputy Commissioner of the District under whose local jurisdiction of Financial Establishment is conducting its business operations or any other officer authorized by the Government may, at any time, direct any Financial Establishment carrying on business in the area of jurisdiction of the Competent Authority to furnish in such form, such information relating to or connected with the deposits received by it, as may be specified in a general or a special order.(6)The Deputy Commissioner of the District under whose local jurisdiction the Financial Establishment is conducting its business operations or any other officer authorized by the Deputy Commissioner on his behalf or any other officer authorized by the Government in order to carry out the purposes of this Act shall have power to visit the office premises or other places of any Financial Establishment operating in the State to check the books of account and other documents to ensure that the business of deposit taking is being conducted as per relevant law with permission or sanction of the authority empowered by that law or that such business is not dressed in any form for misleading or cheating the depositors.(7)The Deputy Commissioner of the District under whose local jurisdiction the Financial Establishment is conducting its business operations or any other officer authorized by the Deputy Commissioner on his behalf or any other officer authorized by the Government in order to carry out the purposes of this Act shall have power to enter and search any premise where they have the reason to believe that any register, book, record, paper, application, information in electronic storage and retrieval device or medium, instrument or proceedings are kept and to inspect them and to take such notes and extracts as they may deem necessary. Every person having in his custody or maintaining such register, book, record, paper, application, or information, or instrument, or preceding shall permit the Competent Authority or any other officer authorized by the Government to inspect them and to take notes and extracts as they may deem necessary and if necessary seize and impound them;Provided that no residential accommodation (not being a place of business -cum-residence) shall be so entered and searched except on the authority of a search warrant issued by a Magistrate having jurisdiction over the area, and all searches under this section, so far as may be, made in accordance with the provisions of the Code of the Criminal Procedure, 1973.(8)For failure to furnish the information or statement under sub-sections (1), (2), or (3) or furnishing a wrong or misleading statement, or refusal to produce or permit inspection of records/documents, etc, as required under sub-sections (6) and (7), the Deputy Commissioner of the District under whose local jurisdiction the Financial Establishment is conducting its business operations, if satisfied, may after giving reasonable opportunity to the Financial Establishment in accordance with law, impose a fine of rupees one lakh for every such default to be deposited within a period of one month.(9)In order to prevent continuation of such fraudulent act or default or non-cooperation at the time of inspection with reference to the foregoing provisions or on detection by the inspecting officer that such business is not being conducted as per relevant law with permission or sanction of the authority empowered by that law or such business is dressed in any form for misleading or cheating the depositors, the Government, based on the report of the Deputy Commissioner of the District may, pass such interim order as if may consider appropriate to restrain that establishment from operating in that area, freeze the bank accounts and restrain it from sale, transfer or alter any moveable or immovable property of that establishment pending confirmation by the Competent Court after making an application by the Competent Authority under sub- section (3) of section 6.(10)The fine money imposed under sub-section (8) if not paid within the time fixed in the order may be recovered as an arrear of land revenue.(11)Any Financial Establishment, aggrieved by the order of the Government, may file appeal before the Competent Court while hearing the application made by the Competent Authority under sub-section(3) of section 6 of this Act. Such appeal filed by the aggrieved Financial Establishment shall be heard by Competent Court under sub-section (3) of the section 6 of this Act while deciding the matter of interim order of attachment made by Government under sections 3 and sub-section (9) of section 8 of this Act.Chapter -IV
