NEW DELHI: The Delhi government has approved a proposal to constitute two designated courts of the additional sessions judge in each judicial district of the city to deal with the matters of unregulated deposit schemes cases.
This has been done with the concurrence of the Chief Justice of the Delhi High Court under section 8 of the Banning of Unregulated Deposit Schemes Act, 2019 passed by Parliament, according to an official statement.
The file has now been sent by the chief minister to the Lieutenant Governor’s office for issuance of a notification.
The act provides a comprehensive mechanism to ban unregulated deposit schemes, other than deposits taken in the ordinary course of business, and to protect the interest of depositors and for matters connected therewith or incidental thereto. This has been done to protect the interest of the gullible depositors.
According to the act, “deposit” means an amount of money received by way of an advance or loan or in any other form, by any deposit taker with a promise to return whether after a specified period or otherwise, either in cash or in kind or the form of a specified service, with or without any benefit in the form of interest, bonus, profit or in any other form.
Such deposit does not include amounts received as loan from a scheduled bank or a cooperative bank or any other banking company as defined in section 5 of the Banking Regulation Act, 1949; amounts received as loan or financial assistance from public financial institutions or any non-banking financial company registered with the Reserve Bank of India (RBI) or any Regional Financial Institutions or insurance companies; amounts received by an individual by way of loan.