An Act to protect the interest of depositors in the Financial Establishments and matters relating thereto.
WHEREAS the Governor of Maharashtra had promulgated the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Ordinance, 1999, on the 29th April 1999 (hereinafter referred to as “the said Ordinance”) ;
AND WHEREAS upon the re-assembly of the State Legislature on the 22nd October 1999, a Bill for converting the said Ordinance into an Act of the State Legislature could not be introduced in the Maharashtra Legislative Assembly for want of time as the session of the State Legislature was prorogued on the 23rd October 1999 ;
AND WHEREAS as provided by article 213(2)(a) of the Constitution of India, the said Ordinance would have ceased to operate after the 3rd December 1999, the date on which the period of six weeks from the date of re-assembly of the State Legislature would have expired ;
AND WHEREAS it was considered expedient to continue the operation of the provisions of the said Ordinance by law ;
AND WHEREAS both Houses of the State Legislature were not in session and the Governor of Maharashtra was satisfied that circumstances existed which rendered it necessary for him to take immediate action to continue the operation of the provisions of the said Ordinance for the purposes hereinafter appearing ; and, therefore, the said Ordinance was repealed by withdrawal and the Maharashtra Protection of Interest of Depositors (in Financial Establishments) (Continuance) Ordinance, 1999, was promulgated with retrospective effect that is, with effect from the 29th April 1999, on the 2nd December 1999 ;
AND WHEREAS the instructions from the President under the proviso to clause (1) of article 213 of the Constitution of India have been obtained ;
AND WHEREAS it is expedient to replace the Maharashtra Protection of Interest of Depositors (in Financial Establishments) (Continuance) Ordinance, 1999 by an Act of the State Legislature ;
It is hereby enacted in the Fiftieth Year of the Republic of India as follows :–-
1. Short title and commencement:- (1) This Act may be called the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999.
(2) It shall be deemed to have come into force on the 29th April 1999.
2. Definitions:- In this Act, unless the context otherwise requires,—
(a) “Competent Authority” means the Competent Authority appointed under section 5 ;
(b) “Designated Court” means the Designated Court constituted under section 6 ;
(c) “deposit” includes and shall be deemed always to have included any receipt of money or acceptance of any valuable commodity by any Financial Establishment to be returned after a specified period or otherwise, either in cash or in kind or in the form of a specified service with or without any benefit in the form of interest, bonus, profit or in any other form, but does not include ––
(i) amount raised by way of share capital or by way of debenture, bond or any other instrument covered under the guidelines given, and regulations made, by the SEBI, established under the Securities and Exchange Board of India Act, 1992 ;
(ii) amounts contributed as capital by partners of a firm ;
(iii) amounts received from a scheduled bank or a cooperative bank or any other banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 ;
(iv) any amount received from,—
(a) the Industrial Development Bank of India,
(b) a State Financial Corporation,
(c) any financial institution specified in or under section 6A of the Industrial Development Bank of India Act, 1964, or
(d) any other institution that may be specified by the Government in this behalf ;
(v) amounts received in the ordinary course of business by way of,—
(a) security deposit,
(b) dealership deposit,
(c) earnest money,
(d) advance against order for goods or services ;
(vi) any amount received from an individual or a firm or an association of individuals not being a body corporate, registered under any enactment relating to money lending which is for the time being in force in the State ; and
(vii) any amount received by way of subscriptions in respect of a Chit.
Explanation I.—“Chit” has the meaning as assigned to it in clause (b) of section 2 of the Chit Funds Act, 1982 ;
Explanation II.— Any credit given by a seller to a buyer on the sale of any property (whether movable or immovable) shall not be deemed to be deposit for the purposes of this clause ;
(d) “Financial Establishment” means any person 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 ;
(e) “Government” means the Government of Maharashtra.