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(201)

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Volume 154

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Bengaluru, Thursday, October 24, 2019 (Karthika 2, Shaka Varsha 1941)

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Issue 42

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International Arbitration Centre Act, 2019 (17 of 2019) C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ ¥ÀæPÀn¸À¯ÁVzÉ.

THE NEW DELHI INTERNATIONAL ARBITRATION CENTRE

ACT, 2019

NO. 17 OF 2019

[26th July, 2019.]

An Act to provide for the establishment and incorporation of the New Delhi

International Arbitration Centre for the purpose of creating an independent

and autonomous regime for institutionalised arbitration and for acquisition

and transfer of the undertakings of the International Centre for Alternative

Dispute Resolution and to vest such undertakings in the New Delhi

International Arbitration Centre for the better management of arbitration so

as to make it a hub for institutional arbitration and to declare the New Delhi

International Arbitration Centre to be an institution of national importance

and for matters connected therewith or incidental thereto.

WHEREAS dispute resolution process has a huge impact on the Indian economy and

global perception on doing business in our country and it has become necessary to inspire

confidence and credibility among the litigants of commercial disputes;

AND WHEREAS rapidly changing economic activity demands expeditious settlement of

disputes and creation and establishment of institutional arbitration;

AND WHEREAS the International Centre for Alternative Dispute Resolution was set up

in the year 1995, under the aegis of the Central Government and registered under the Societies

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 26th July, 2019/Shravana 4, 1941 (Saka)

The following Act of Parliament received the assent of the President on the

26th July, 2019, and is hereby published for general information:—

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Registration Act, 1860, with the objective of promoting alternative dispute resolution

mechanism and providing facilities for the same;

AND WHEREAS the International Centre for Alternative Dispute Resolution has received

land and substantial funding by way of grants and other benefits from the Central Government

for constructing infrastructure and making other facilities;

AND WHEREAS the International Centre for Alternative Dispute Resolution has not

been able to actively engage and embrace developments in the arbitration ecosystem and to

create a reputation par excellence keeping pace with the dynamic nature of arbitration over

more than two decades;

AND WHEREAS studies conducted by the High Level Committee appointed by the

Central Government indicate that the International Centre for Alternative Dispute Resolution

has failed to address the growing needs of the institutional arbitration and also to bear

optimum caseload and to become better choice to the parties for arbitration;

AND WHEREAS it has become expedient to take over the undertakings of the International

Centre for Alternative Dispute Resolution including its regional offices without interfering

with its activities and without adversely affecting its character as a Society but to utilise its

existing infrastructure and other facilities which have been set up by using the public funds

provided by the Government and to incorporate a robust institution for domestic and

international arbitration to be known as the New Delhi International Arbitration Centre;

AND WHEREAS it is considered necessary to declare the New Delhi International

Arbitration Centre as an institution of national importance for its overall development as a

major arbitration hub by promoting quick and efficient dispute resolution mechanism.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the New Delhi International Arbitration Centre Act, 2019.

(2) It shall be deemed to have come into force on the 2nd March, 2019.

2. (1) In this Act, unless the context otherwise requires,—

(a) “Centre” means the New Delhi International Arbitration Centre established

and incorporated under section 3;

(b) “Chairperson” means the Chairperson of the Centre referred to in clause (a)

of section 5;

(c) “Chief Executive Officer” means the Chief Executive Officer appointed under

section 21;

(d) “Committee” means the relevant Committee of the Centre referred to in

section 19;

(e) “Custodian” means the person who is appointed as Custodian under

sub-section (2) of section 11 in respect of the undertakings;

(f) “Fund” means the Fund of the Centre to be maintained under section 25;

(g) “Member” means Full-time or Part-time Member of the Centre and includes

the Chairperson;

(h) “notification” means a notification published in the Official Gazette;

(i) “prescribed” means prescribed by rules made by the Central Government

under this Act;

(j) “regulations” means regulations made by the Centre under this Act;

21 of 1860.

Definitions.

Short title and

commencement.

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(k) “Society” means the International Centre for Alternative Dispute Resolution,

registered as such under the Societies Registration Act, 1860, and having its registered

office at New Delhi;

(l) “specified date” means the date as may be specified by the Central Government

by notification;

(m) “undertakings” means the undertakings of the Society which vests with the

Central Government under section 7.

(2) All other words and expressions used herein but not defined and defined in the

Arbitration and Conciliation Act, 1996, shall have the same meanings as assigned to them in

that Act.

CHAPTER II

ESTABLISHMENT AND INCORPORATION OF NEW DELHI INTERNATIONAL ARBITRATION CENTRE

3. (1) The Central Government shall, by notification, establish a body to be called the

New Delhi International Arbitration Centre for the purposes of exercising the powers and

discharging the functions under this Act.

(2) The Centre shall be a body corporate by the name aforesaid, having perpetual

succession and a common seal with power, subject to the provisions of this Act, to acquire,

hold and dispose of property, both movable and immovable, and to enter into contract, and

shall, by the said name, sue or be sued.

4. (1)Whereas, the objects of the New Delhi International Arbitration Centre are such

as to make it as an institution of national importance, it is hereby declared that the New Delhi

International Arbitration Centre is an institution of national importance.

(2) The head office of the Centre shall be at New Delhi and it may with the previous

approval of the Central Government, establish branches at other places in India and abroad.

5. The Centre shall consist of the following Members, namely:––

(a) a person, who has been a Judge of the Supreme Court or a Judge of a High

Court or an eminent person, having special knowledge and experience in the conduct

or administration of arbitration, law or management, appointed by the Central

Government in consultation with the Chief Justice of India––Chairperson;

(b) two eminent persons having substantial knowledge and experience in

institutional arbitration, both domestic and international, appointed by the Central

Government––Full-time Members or Part-time Members;

(c) one representative of a recognised body of commerce and industry, chosen

on rotational basis by the Central Government––Part-time Member;

(d) Secretary, Department of Legal Affairs, Ministry of Law and Justice or his

representative, not below the rank of the Joint Secretary––Member, ex officio;

(e) one Financial Adviser nominated by the Department of Expenditure, Ministry

of Finance––Member, ex officio; and

(f) Chief Executive Officer––Member, ex officio.

6. (1) The Chairperson and Members shall hold office for a term of three years from the

date on which they enter upon their office and shall be eligible for re-appointment:

Provided that no Chairperson or Member shall hold office as such after he has attained the

age of seventy years in the case of Chairperson and sixty-seven years in the case of a Member.

(2) The terms and conditions, salaries and allowances payable to the Chairperson and

Full-time Member shall be such as may be prescribed.

Establishment

and

incorporation

of New Delhi

International

Arbitration

Centre.

21 of 1860.

26 of 1996.

Declaration

of New Delhi

International

Arbitration

Centre as an

institution of

national

importance.

Composition

of Centre.

Terms and

conditions,

etc., of

Chairperson

and Members.

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(3) The term of office of a Member appointed to fill a casual vacancy shall be for the

remainder of the term of the Member in whose place he has been appointed.

(4) The Part-time Member shall be entitled to such travelling and other allowances as

may be prescribed.

CHAPTER III

ACQUISITION AND TRANSFER OF UNDERTAKINGS OF SOCIETY

7. On and from the specified date, so much of the undertakings of the Society as form

part of, or are relatable to the Society, and the right, title and interest of the Society in relation

to such undertakings, shall, by virtue of this Act, stand transferred to, and vest in, the

Central Government.

8. (1) The undertakings vested under section 7 shall be deemed to include all assets,

rights, leaseholds, powers, authorities and privileges, and all property (movable and

immovable), including lands, buildings, works, projects, instruments, automobiles and other

vehicles, cash balances, funds, including reserve funds, investments and book debts of the

Society as form part of, or are relatable to, the Society and all other rights and interest arising

out of such properties as were immediately before the commencement of the New Delhi

International Arbitration Centre Ordinance, 2019 in the ownership, possession, power or

control of the Society, and all books of account, registers and all other documents of whatever

nature relating thereto.

(2) All properties and assets as aforesaid which have vested in the Central Government

under section 7 shall, by force of such vesting, be freed and discharged from any trust,

obligation, mortgage, charge, lien and all other encumbrances affecting them or of any

attachment, injunction, decree or order of any court or other authority restricting the use of

such properties or assets in any manner or appointing any receiver in respect of the whole

or any part of such properties or assets shall be deemed to have been withdrawn.

(3) Any licence or other instrument granted to the Society in relation to any undertaking

which has vested in the Central Government under section 7 at any time before the specified

date and in force immediately before the specified date, shall continue to be in force on and

after such day in accordance with its tenor in relation to and for the purpose of such

undertaking or where the undertaking is directed under section 10, to vest in the Centre, the

Centre shall be deemed to be substituted in such licence or other instrument as if such

licence or other instrument had been granted to the Centre and the Centre shall hold it for the

remainder of the period which the Society would have held it under the terms thereof.

(4) If, on the specified date, any suit, appeal or other proceeding, of whatever nature,

in relation to any property or asset which has vested in the Central Government under

section 7, instituted or preferred by or against the Society is pending, the same shall not

abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of

the undertaking of the Society of anything contained in this Act, but the suit, appeal or other

proceeding may be continued, prosecuted or enforced by or against the Central Government

or where the undertakings of the Society are directed under section 10, to vest in the Centre,

by or against the Centre.

9. Every liability in relation to any undertaking in respect of any period prior to the

specified date, shall be enforceable against the Society and not against the Central

Government.

10. (1) Notwithstanding anything contained in sections 7 and 8, the Central Government

shall, as soon as may be after the specified date, direct by notification, that the undertakings

and the right, title and interest of the Society in relation to such undertakings which had

vested in the Central Government under section 7, shall, vest in the Centre either on the date

of publication of the notification or on such earlier or later date as may be specified in the

notification.

Transfer and

vesting.

General effect

of vesting.

Ord. 10 of

2019.

Liability prior

to specified

date.

Power of

Central

Government

to direct

vesting of

undertaking in

Centre.

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(2) Where the right, title and interest of the Society in relation to the undertakings

vest, under sub-section (1), in the Centre, the Centre shall, on and from the date of such

vesting, be deemed to have become the owner in relation to such undertakings and the

rights and liabilities of the Central Government in relation to such undertakings shall, on and

from the date of such vesting, be deemed to have become, the rights and liabilities,

respectively, of the Centre.

11. (1) The general superintendence, direction, control and management of affairs of

the undertakings, the right, the interest in relation to which have vested in the Central

Government under section 7, shall––

(a) where a direction has been made by the Central Government under

sub-section (1) of section 10, vest in the Centre; or

(b) where no such direction has been made by the Central Government, vest in

the Custodian appointed by the Central Government under sub-section (2),

and, thereupon, the Centre or the Custodian so appointed, as the case may be, shall be

entitled to exercise all such powers and do all such things as the Society, is authorised to

exercise and do in relation to its undertakings.

(2) The Central Government may appoint any person as the Custodian of the

undertakings in relation to which no direction has been made by it under sub-section (1) of

section 10.

(3) The Custodian so appointed shall receive such remuneration as the Central

Government may fix and shall hold office during the pleasure of the Central Government.

12. (1) On the vesting of the management of the undertakings in the Centre or on the

appointment of a Custodian under sub-section (2) of section 11, all persons in charge of

management of the undertakings immediately before such vesting or appointment shall be

bound to deliver to the Centre or Custodian, as the case may be, all assets, books of account,

registers and other documents in their custody relating to the undertakings.

(2) The Central Government may issue such directions as it may deem desirable in the

circumstances of the case to the Custodian as to the powers and duties of the Custodian and

such Custodian may also, if it is considered necessary so to do, apply to the Central Government

at any time for instructions as to the manner in which the management of the undertaking

shall be conducted or in relation to any other matter arising in the course of such management.

(3) Any person who on the specified date, has in his possession or under his control,

any books, documents or other papers relating to the undertakings shall be liable to account

for the said books, documents or other papers to the Central Government or the Custodian

or the Centre, as the case may be, and shall deliver them to the Central Government or the

Custodian or the Centre or to such person or body of persons as the Central Government or

the Centre may specify in this behalf.

(4) The Central Government or the Centre may take or cause to be taken, all necessary

steps for securing possession of all undertakings which have vested in the Central

Government or the Centre under this Act.

(5) The Society shall, within such period as the Central Government may allow in this

behalf, furnish to that Government a complete inventory of all its properties and assets, as

on the commencement of the New Delhi International Arbitration Centre Ordinance, 2019

pertaining to the undertaking and for this purpose, the Central Government or Custodian or

the Centre shall afford to the Society, or body all reasonable facilities.

13. The Central Government or the Custodian or the Centre shall be entitled to receive

up to the specified date, to the exclusion of all other persons, any money due to the Society

in relation to its undertakings which have vested in the Central Government or Custodian or

the Centre, as the case may be, and realised after the commencement of the New Delhi

Management,

etc., of

undertakings.

Duties of

persons in

charge of

management

of

undertakings

to deliver all

assets.

Ord. 10 of

2019.

Certain

powers of

Central

Government

or Centre.

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International Arbitration Centre Ordinance, 2019, notwithstanding that the realisation pertains

to a period prior to the commencement of the New Delhi International Arbitration Centre

Ordinance, 2019.

14. The objects of the Centre shall be,––

(a) to bring targeted reforms to develop itself as a flagship institution for

conducting international and domestic arbitration;

(b) to promote research and study, providing teaching and training, and

organising conferences and seminars in arbitration, conciliation, mediation and other

alternative dispute resolution matters;

(c) to provide facilities and administrative assistance for conciliation, mediation

and arbitral proceedings;

(d) to maintain panels of accredited arbitrators, conciliators and mediators both

at national and international level or specialists such as surveyors and investigators;

(e) to collaborate with other national and international institutions and

organisations for ensuring credibility of the Centre as a specialised institution in

arbitration and conciliation;

(f) to set up facilities in India and abroad to promote the activities of the Centre;

(g) to lay down parameters for different modes of alternative dispute resolution

mechanisms being adopted by the Centre; and

(h) such other objectives as it may deem fit with the approval of the Central

Government.

15. Without prejudice to the provisions contained in section 14, the Centre shall

strive,––

(a) to facilitate for conducting international and domestic arbitration and

conciliation in the most professional manner;

(b) to provide cost effective and timely services for the conduct of arbitration

and conciliation at national and international level;

(c) to promote studies in the field of alternative dispute resolution and related

matters, and to promote reforms in the system of settlement of disputes;

(d) to undertake teaching and to provide for diffusion of knowledge of law and

procedures on alternative dispute resolution and related matters and to award certificates

and other academic or professional distinction;

(e) to impart training in alternative dispute resolution and related matters to

those who are handling arbitration, conciliation and mediation;

(f) to co-operate with other societies, institutions and organisations, national or

international for promoting alternative dispute resolution; and

(g) to perform such other functions as may be entrusted to it by the Central

Government for promoting alternative dispute resolution.

16. No act or proceedings of the Centre shall be invalid merely by reason of,––

(a) any vacancy or any defect in the constitution of the Centre; or

(b) any defect in the appointment of a person acting as a Member of the Centre; or

(c) any irregularity in the procedure of the Centre not affecting the merits of the

case.

Ord. 10 of

2019.

Objects of

Centre.

Functions

of

Centre.

Vacancies,

etc., not to

invalidate

proceedings of

Centre.

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17. The Chairperson or the Full-time Member or Part-time Member may, by notice in

writing, under his hand addressed to the Central Government, resign his office:

Provided that the Chairperson or the Full-time Member shall, unless he is permitted by

the Central Government to relinquish his office sooner, continue to hold office until the

expiry of three months from the date of receipt of such notice or until a person duly appointed

as his successor enters upon his office or until the expiry of his term of office, whichever is

the earlier.

18. (1) The Central Government may, remove a Member from his office if he,––

(a) is an undischarged insolvent; or

(b) has engaged at any time (except Part-time Member), during his term of office,

in any paid employment; or

(c) has been convicted of an offence which, in the opinion of the Central

Government, involves moral turpitude; or

(d) has acquired such financial or other interest as is likely to affect prejudicially

his functions as a Member; or

(e) has so abused his position as to render his continuance in office prejudicial

to the public interest; or

(f) has become physically or mentally incapable of acting as a Member.

(2) Notwithstanding anything contained in sub-section (1), no Member shall be

removed from his office on the grounds specified in clauses (d) and (e) of that sub-section

unless the Supreme Court, on a reference being made to it in this behalf by the Central

Government, has, on an inquiry, held by it in accordance with such procedure as may be

prescribed in this behalf by the Supreme Court, reported that the Member, ought on such

ground or grounds to be removed.

19. (1) The Centre may constitute such Committees as may be considered necessary

to administer various aspects of its functions.

(2) The composition and functions of the Committees referred to in sub-section (1)

shall be such as may be prescribed.

(3) The Committee shall meet at such time and at such places and shall observe such

rules of procedure in regard to the transaction of business at its meetings including the

quorum as may be specified by the regulations.

20. (1) The Chairperson shall ordinarily preside at the meetings of the Centre:

Provided that, in his absence, the Member chosen by the other Members present

amongst themselves shall preside at the meetings.

(2) It shall be the duty of the Chairperson to ensure that the decisions taken by the

Centre are implemented.

(3) The Chairperson shall exercise such other powers and perform such other duties

as are assigned to him under this Act.

(4) The Centre shall meet at least four times a year and follow such procedure in its

meetings including quorum at such meetings in such manner as may be specified by the

regulations.

(5) All questions which come up before any meeting of the Centre shall be––

(a) decided by a majority of votes by the Members present and voting, and in

the event of an equality of votes, the Chairperson or in his absence, the person

presiding, shall have a casting vote;

Resignation of

Members.

Removal

of

Members.

Committees of

Centre.

Meetings of

Centre.

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(b) dealt with as expeditiously as possible and the Centre shall dispose of the

same within a period of sixty days from the date of receipt of the application:

Provided that where any such application could not be disposed of within the

said period of sixty days, the Centre shall record its reasons in writing for not disposing

of the application within that period.

(6) The Chairperson may invite any expert, not being a Member, to attend the meetings

of the Centre, but such invitee shall not be entitled to vote at the meeting.

21. (1) There shall be a Chief Executive Officer of the Centre who shall be responsible

for day-to-day administration of the Centre and for this purpose, he shall maintain liaison

with the Centre and the Secretariat.

(2) The appointment, qualifications and the terms and conditions of services of the

Chief Executive Officer shall be such as may be specified by the regulations.

(3) The Chief Executive Officer shall exercise such powers and discharge such functions

as may be specified by the regulations or as may be delegated to him by the Centre.

22. The Centre may, for the purpose of discharging of its powers, functions and

duties, by general or special order in writing, specify the powers and duties conferred or

imposed upon the Centre by or under this Act (except the power to make regulation) which

may also be exercised or performed by the Chief Executive Officer or any officer or officers of

the Centre and the conditions and restrictions, if any, subject to which the powers and

duties may be exercised and performed.

23. (1) There shall be a Secretariat to the Centre consisting of––

(a) Registrar, who shall supervise the activities of the Centre;

(b) Counsel, dealing with the matters relating to domestic and international

arbitration; and

(c) such number of other officers and employees as may be prescribed.

(2) The qualifications, experience, method of selection and the functions of the Registrar,

Counsel and other officers and employees shall be such as may be prescribed.

CHAPTER IV

FINANCE, ACCOUNTS AND AUDIT

24. The Central Government may, after due appropriation made by Parliament by law in

this behalf, pay to the Centre in each financial year such sums of money and in such manner

as it may think fit for being utilised for the purposes of this Act.

25. (1) The Centre shall maintain a Fund to which shall be credited,—

(a) all monies provided by the Central Government;

(b) all fees and other charges received during or in connection with the arbitration,

conciliation, mediation or other proceedings;

(c) all monies received by the Centre for the facilities provided by it to the

parties;

(d) all monies received by the Centre in the form of donations, grants,

contributions and income from other sources; and

(e) the amount received from the investment income.

(2) All monies credited to the Fund shall be deposited in such banks or invested in

such manner as may be decided by the Centre.

Chief

Executive

Officer.

Delegation of

powers.

Secretariat.

Grants by

Central

Government.

Fund of

Centre.

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(3) The Fund shall be applied towards meeting the salaries and other allowances of

Members and the expenses of the Centre including expenses incurred in the exercise of its

powers and discharge of its duties under this Act.

26. (1) The Centre shall maintain proper accounts and other relevant records and

prepare an annual statement of accounts, including the balance sheet, in such form and

manner as may be prescribed in consultation with the Comptroller and Auditor-General of

India.

(2) The accounts of the Centre shall be audited by the Comptroller and Auditor-

General of India and any expenditure incurred by him in connection with such audit shall be

payable by the Centre to the Comptroller and Auditor-General of India.

(3) The Comptroller and Auditor-General of India and any person appointed by him in

connection with the audit of the accounts of the Centre shall have the same rights, privileges

and authority in connection with such audit as the Comptroller and Auditor-General of India

has in connection with the audit of the Government accounts, and, in particular, shall have

the right to demand the production of books, accounts, connected vouchers and other

documents and papers and to inspect the offices of the Centre.

(4) The accounts of the Centre as certified by the Comptroller and Auditor-General of

India or any other person appointed by him in this behalf together with the audit report

thereon shall be forwarded annually to the Central Government and the Central Government

shall cause the same to be laid before each House of Parliament.

27. The assets and liabilities in relation to any undertaking under this Act shall be

caused to be assessed by any agency authorised by the Comptroller and Auditor-General of

India in such manner as may be specified by him and any payment on a claim to be made in

relation thereto shall be settled by him between the Society and the Central Government and

shall be paid by the Society or the Central Government, as the case may be, in the manner as

may be specified by the Comptroller and Auditor-General of India.

CHAPTER V

CHAMBER OF ARBITRATION AND ARBITRATION ACADEMY

28. (1) The Centre shall, establish a Chamber of Arbitration which shall empanel the

Arbitrators and also scrutinise the applications for admission in the panel of reputed

arbitrators to maintain a permanent panel of arbitrators.

(2) The Chamber of Arbitration shall consist of experienced arbitration practitioners of

repute, at national and international level and persons having wide experience in the area of

alternative dispute resolution and conciliation.

(3) The Centre shall by regulations lay down the criteria for admission to the panel of

the cadre so as to maintain a pool of reputed arbitrators having expertise in international

commercial arbitration and arbitration other than international commercial arbitration.

(4) The Registrar to the Secretariat of the Centre shall act as the Member-Secretary to

the Chamber of Arbitration.

29. (1) The Centre may establish an Arbitration Academy––

(a) to train the arbitrators, particularly in the area of international commercial

arbitration to compete on par with the reputed international arbitral institutions;

(b) to conduct research in the area of alternative dispute resolution and allied

areas; and

(c) to give suggestions for achieving the objectives of the Act.

(2) For the purposes of sub-section (1), there may be constituted a permanent three

member committee in order to suggest and to submit a report to the Centre with respect to

the amendments, if any, necessary to the rules and regulations made under this Act.

Accounts and

audit.

Assessment of

assets and

liabilities of

undertaking.

Chamber of

Arbitration.

Arbitration

Academy.

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CHAPTER VI

MISCELLANEOUS

30. (1) The Central Government may, by notification, make rules to carry out the

provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may make provision for—

(a) the terms and conditions and the salaries and allowances payable to the

Chairperson and Full-time Members under sub-section (2) of section 6;

(b) the travelling and other allowances payable to the Part-time Members under

sub-section (4) of section 6;

(c) the composition and functions of the Committees referred to in sub-section (2)

of section 19;

(d) the number of officers and employees of the Secretariat of the Centre under

clause (c) of sub-section (1) of section 23;

(e) the qualifications, experience, method of selection and the functions of

the Registrar, Counsel and other officers and employees of the Centre under

sub-section (2) of section 23;

(f) annual statement of accounts, including the balance sheet under

sub-section (1) of section 26; and

(g) any other matter in respect of which provision is to be made or may be made

under this Act.

31. (1) The Centre may, with the previous approval of the Central Government, by

notification, make regulations consistent with this Act and the rules made thereunder to

provide for all matters for which provision is necessary or expedient for the purposes of

giving effect to the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such

regulations may make provision for––

(a) the time and place and the rules of procedure to be observed in regard to the

transaction of business of the Committee at the meetings including the quorum under

sub-section (3) of section 19;

(b) the time and place and rules of procedure in regard to the transaction of

business of the Centre or any Committee including the quorum at the meeting under

sub-section (4) of section 20;

(c) the appointment, qualifications and the terms and conditions of service of

the Chief Executive Officer under sub-section (2) of section 21;

(d) the powers and functions of the Chief Executive Officer under

sub-section (3) of section 21;

(e) the criteria for admission to the panel of reputed arbitrators under

sub-section (3) of section 28; and

(f) any other matter in respect of which provision, in the opinion of the Centre, is

necessary for the performance of its functions under this Act.

32. Every rule and regulation made under this Act shall be laid, as soon as may be after

it is made, before each House of Parliament, while it is in session, for a total period of thirty

days which may be comprised in one session or in two or more successive sessions, and if,

before the expiry of the session immediately following the session or the successive sessions

aforesaid, both Houses agree in making any modification in the rule or regulation or both

Power to

make rules.

Power to make

regulations.

Laying of

rules and

regulations.

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¨sÁUÀ 4

Houses agree that the rule or regulation should not be made, the rule or regulation shall

thereafter have effect only in such modified form or be of no effect, as the case may be; so,

however, that any such modification or annulment shall be without prejudice to the validity

of anything previously done under that rule or regulation.

33. No suit, prosecution or other legal proceedings shall lie against the Centre, the

Chairperson or Members or its employees and arbitrators for anything which is in good faith

done or intended to be done under this Act or the rules or regulations made thereunder.

34. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central

Government may, by order published in the Official Gazette, make such provisions, not

inconsistent with the provisions of this Act, as may appear to it to be necessary for removing

the difficulty:

Provided that no such order shall be made under this section after the expiry of a

period of two years from the date of commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made,

before each House of Parliament.

35. (1) The New Delhi International Arbitration Centre Ordinance, 2019 is hereby

repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the New

Delhi International Arbitration Centre Ordinance, 2019, shall be deemed to have been done

or taken under the provisions of this Act.

Protection of

action taken

in good faith.

Power to

remove

difficulty.

Repeal and

savings.

Ord. 10 of

2019.

Ord. 10 of

2019.

DR. REETA VASISHTA,

Additional Secretary to the Govt. of India.

BANSHI

DHAR

DUBEY

Digitally signed

by BANSHI

DHAR DUBEY

Date: 2019.07.26

22:36:15 +05'30'

P.R.-35

SC - 20

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¨sÁUÀ 4

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C¢ü¸ÀÆZÀ£É

¸ÀASÉå: ¸ÀAªÀåE 10 PÉñÁ¥Àæ 2019(e-Office), ¨ÉAUÀ¼ÀÆgÀÄ, ¢£ÁAPÀ: 06-9-2019.

¢£ÁAPÀ: 24-07-2019 gÀAzÀÄ ¨sÁgÀvÀ ¸ÀPÁðgÀzÀ UÉeÉmï£À «±ÉõÀ ¸ÀAaPÉAiÀÄ Part-II Section 1 gÀ°è ¥ÀæPÀlªÁzÀ The Central

Universities (Amendment) Act, 2019 (15 of 2019) C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ ¥ÀæPÀn¸À¯ÁVzÉ.

THE CENTRAL UNIVERSITIES (AMENDMENT) ACT, 2019

NO. 15 OF 2019

[23rd July, 2019.]

An Act further to amend the Central Universities Act, 2009.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

1. (1) This Act may be called the Central Universities (Amendment) Act, 2019.

(2) It shall come into force on such date as the Central Government may, by notification

in the Official Gazette, appoint.

2. After section 3B of the Central Universities Act, 2009 (hereinafter referred to as the

principal Act), the following sections shall be inserted, namely:—

Short title and

commencement.

25 of 2009.

Insertion of

new sections

3C and 3D.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 24th July, 2019/Shravana 2, 1941 (Saka)

The following Act of Parliament received the assent of the President on the

23rd July, 2019, and is hereby published for general information:—

“3C. There shall be established a University, which shall be a body corporate, to

be known as the Central University of Andhra Pradesh, having its territorial jurisdiction

extending to the whole of the State of Andhra Pradesh, as specified in the First Schedule

to this Act.

3D. There shall be established a Tribal University, which shall be a body

corporate, to be known as the Central Tribal University of Andhra Pradesh, having its

territorial jurisdiction extending to the whole of the State of Andhra Pradesh, as specified

in the First Schedule to this Act, to provide avenues of higher education and research

facilities primarily for the tribal population of India.”.

3. In section 5 of the principal Act, the following proviso shall be inserted at the end,

namely:—

“Provided that the Tribal University established under section 3D shall take

additional measures for paying special attention to the tribal centric higher education

and research, including art, culture and customs.”.

4. For the First Schedule to the principal Act, the following Schedule shall be

substituted, namely:—

“THE FIRST SCHEDULE

[See section 3(4)]

Serial Name of the

Name of the University

Territorial jurisdiction

No.

State

(1)

(2)

(3)

(4)

1. Andhra Pradesh

Central University of Andhra Pradesh Whole of the State of

Andhra Pradesh.

2. Andhra Pradesh

Central Tribal University of

Whole of the State of

Andhra Pradesh

Andhra Pradesh.

3. Bihar

Central University of South Bihar

Territory in the south of

the River Ganges in the

State of Bihar.

Establishment

of Central

University of

Andhra

Pradesh.

Establishment

of Central

Tribal

University of

Andhra

Pradesh.

Amendment

of section 5.

Substitution

of new

Schedule for

First Schedule.

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213

¨sÁUÀ 4

4. Bihar

Mahatma Gandhi Central University

Territory in the north of the

River Ganges in the State

of Bihar.

5. Gujarat

Central University of Gujarat

Whole of the State of

Gujarat.

6. Haryana

Central University of Haryana

Whole of the State of

Haryana.

7. Himachal

Central University of

Whole of the State of

Pradesh

Himachal Pradesh

Himachal Pradesh.

8. Jammu and

Central University of Kashmir

Kashmir Division of the

Kashmir

State of Jammu and

Kashmir.

9. Jammu and

Central University of Jammu

Jammu Division of the

Kashmir

State of Jammu and

Kashmir.

10. Jharkhand

Central University of Jharkhand

Whole of the State of

Jharkhand.

11. Karnataka

Central University of Karnataka

Whole of the State of

Karnataka.

Serial Name of the

Name of the University

Territorial jurisdiction

No. State

(1)

(2)

(3)

(4)

12. Kerala

Central University of Kerala

Whole of the State of

Kerala.

13. Odisha

Central University of Odisha

Whole of the State of

Odisha.

14. Punjab

Central University of Punjab

Whole of the State of

Punjab.

15. Rajasthan

Central University of Rajasthan

Whole of the State of

Rajasthan.

16. Tamil Nadu

Central University of Tamil Nadu

Whole of the State of

Tamil Nadu.”.

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.

BANSHI

DHAR

DUBEY

Digitally signed

by BANSHI DHAR

DUBEY

Date: 2019.07.24

19:48:44 +05'30'

P.R. 36

SC - 20

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214

¨sÁUÀ 4

THE NATIONAL INVESTIGATION AGENCY (AMENDMENT)

ACT, 2019

NO. 16 OF 2019

[24th July, 2019.]

An Act to amend the National Investigation Agency Act, 2008.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

1. (1) This Act may be called the National Investigation Agency (Amendment)

Act, 2019.

(2) It shall come into force on such date as the Central Government may, by notification

in the Official Gazette, appoint.

2. In the National Investigation Agency Act, 2008 (hereinafter referred to as the

principal Act), in section 1, in sub-section (2),—

(i) in clause (b), the word “and” occurring at the end, shall be omitted;

Short title and

commencement.

Amendment

of section 1.

34 of 2008.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 25th July, 2019/Shravana 3, 1941 (Saka)

The following Act of Parliament received the assent of the President on the

24th July, 2019, and is hereby published for general information:—

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Investigation Agency (Amendment) Act, 2019 (16 of 2019) C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ ¥ÀæPÀn¸À¯ÁVzÉ.

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215

¨sÁUÀ 4

(ii) in clause (c), after the words “may be”, the word “and” shall be inserted;

(iii) after clause (c), the following clause shall be inserted, namely:—

“(d) to persons who commit a Scheduled Offence beyond India against

the Indian citizens or affecting the interest of India.”.

3. In section 2 of the principal Act, in sub-section (1), in clause (h), for the words “a

Special Court constituted”, the words “a Court of Session designated as Special Court”

shall be substituted.

4. In section 3 of the principal Act, in sub-section (2), after the word “India”, the

words “and, subject to any international treaty or domestic law of the concerned country,

outside India,” shall be inserted.

5. In section 6 of the principal Act, after sub-section (7), the following sub-sections

shall be inserted, namely:—

“(8) Where the Central Government is of the opinion that a Scheduled Offence

has been committed at any place outside India to which this Act extends, it may direct

the Agency to register the case and take up investigation as if such offence has been

committed in India.

(9) For the purposes of sub-section (8), the Special Court at New Delhi shall

have the jurisdiction.’’.

6. In section 11 of the principal Act,—

(i) in the marginal heading, for the word “constitute”, the words “designate

Court of Session as” shall be substituted;

(ii) in sub-section (1),—

“(a) for the portion beginning with the words “The Central Government”,

and ending with the words “Special Courts”, the words “The Central Government

shall, in consultation with the Chief Justice of the High Court, by notification in

the Official Gazette, for the trial of Scheduled Offences, designate one or more

Courts of Session as Special Court” shall be substituted;

(b) the following Explanation shall be inserted, namely:—

'Explanation.—For the purposes of this sub-section, the expression

"High Court" means the High Court of the State in which a Court of

Session to be designated as Special Court is functioning.';

(iii) sub-sections (3), (4), (5), (6) and (7) shall be omitted;

(iv) in sub-section (8),—

(a) for the words "by a person appointed as a Judge or an additional

Judge of a Special Court", the words, brackets and figure "by the Sessions

Judge of the Court of Session referred to in sub-section (1)" shall be substituted;

(b) for the words "such judge or additional judge and the Central

Government", the words "judge of the Special Court and the appointing authority

in consultation with the Central Government" shall be substituted;

(c) for the words "as may be specified in that order" occurring at the end,

the words ",whichever is earlier" shall be substituted;

(v) for sub-section (9), the following sub-section shall be substituted, namely:—

"(9) When more than one Special Court is designated for an area or areas,

the senior-most Judge shall distribute the business among them.".

Amendment

of section 2.

Amendment

of section 3.

Amendment

of section 6.

Amendment

of section 11.

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7. In section 22 of the principal Act,—

(i) in the marginal heading, for the word "constitute", the words "designate

Court of Session as" shall be substituted;

(ii) in sub-section (1), for the words "constitute one or more", the words

"designate one or more Courts of Session as" shall be substituted;

(iii) in sub-sections (2), (3) and (4), for the word "constituted" wherever it

occurs, the word "designated" shall be substituted.

8. In the Schedule to the principal Act,-—

(i) for serial number 1 and the entry relating thereto, the following serial numbers

and entries shall be substituted, namely:—

"1. The Explosive Substances Act, 1908 (6 of 1908);

1A. The Atomic Energy Act, 1962 (33 of 1962);";

(ii) in serial number 3, for the figures, brackets and word "1982 (65 of 1982)",

the figures, brackets and word "2016 (30 of 2016)" shall be substituted;

(iii) in serial number 8, for entry (b), the following entries shall be substituted,

namely:—

"(b) Sections 370 and 370A of Chapter XVI of the Indian Penal Code

(45 of 1860);

(c) Sections 489-A to 489-E (both inclusive) of the Indian Penal Code

(45 of 1860);

(d) Sub-section (1AA) of section 25 of Chapter V of the Arms Act, 1959

(54 of 1959);

(e) Section 66F of Chapter XI of the Information Technology Act, 2000

(21 of 2000).".

Amendment

of section 22.

Amendment

of Schedule.

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.

BANSHI

DHAR

DUBEY

Digitally signed by

BANSHI DHAR

DUBEY

Date: 2019.07.25

21:45:12 +05'30'

P.R.-37

SC - 20

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THE AADHAAR AND OTHER LAWS (AMENDMENT) ACT, 2019

NO. 14 OF 2019

[23rd July, 2019.]

An Act to amend the Aadhaar (Targeted Delivery of Financial and Other Subsidies,

Benefits and Services) Act, 2016 and further to amend the Indian Telegraph

Act, 1885 and the Prevention of Money-laundering Act, 2002.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

PART I

PRELIMINARY

1. (1) This Act may be called the Aadhaar and Other Laws (Amendment) Act, 2019.

(2) It shall come into force on such date as the Central Government may, by notification

in the Official Gazette, appoint; and different dates may be appointed for different provisions

Short title and

commencement.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 24th July, 2019/Shravana 2, 1941 (Saka)

The following Act of Parliament received the assent of the President on the

23rd July, 2019, and is hereby published for general information:—

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¨sÁUÀ 4

of this Act and any reference in any such provision to the commencement of this Act shall

be construed as a reference to the commencement of that provision.

PART II

AMENDMENTS TO THE AADHAAR (TARGETED DELIVERY OF FINANCIAL AND OTHER SUBSIDIES,

BENEFITS AND SERVICES) ACT, 2016

2. In the long title of the Aadhaar (Targeted Delivery of Financial and Other Subsidies,

Benefits and Services) Act, 2016 (hereafter in this Part referred to as the principal Act), after

the words “the Consolidated Fund of India”, the words “or the Consolidated Fund of the

State” shall be inserted.

3. In section 2 of the Principal Act,—

(i) for clause (a), the following clause shall be substituted, namely:—

‘(a) “Aadhaar number” means an identification number issued to an

individual under sub-section (3) of section 3, and includes any alternative virtual

identity generated under sub-section (4) of that section;’;

(ii) after clause (a), the following clause shall be inserted, namely:—

‘(aa) “Aadhaar ecosystem” includes enrolling agencies, Registrars,

requesting entities, offline verification-seeking entities and any other entity or

group of entities as may be specified by regulations;’;

(iii) after clause (b), the following clauses shall be inserted, namely:—

‘(ba) “Adjudicating Officer” means an Adjudicating Officer appointed

under sub-section (1) of section 33B;

(bb) “Appellate Tribunal” means the Appellate Tribunal referred to in

sub-section (1) of section 33C;’;

(iv) after clause (i), the following clause shall be inserted, namely:—

‘(ia) “child” means a person who has not completed eighteen years of

age;’;

(v) after clause (p), the following clauses shall be inserted, namely:—

‘(pa) “offline verification” means the process of verifying the identity of

the Aadhaar number holder without authentication, through such offline modes

as may be specified by regulations;

(pb) “offline verification-seeking entity” means any entity desirous of

undertaking offline verification of an Aadhaar number holder;’.

4. In section 3 of the principal Act, after sub-section (3), the following sub-section

shall be inserted, namely:—

“(4) The Aadhaar number issued to an individual under sub-section (3) shall

be a twelve-digit identification number and any alternative virtual identity as an

alternative to the actual Aadhaar number of an individual that shall be generated by

the Authority in such manner as may be specified by regulations.”.

5. After section 3 of the principal Act, the following section shall be inserted,

namely:—

“3A. (1) The enrolling agency shall, at the time of enrolment of a child, seek the

consent of the parent or guardian of the child, and inform the parent or guardian, the

details specified under sub-section (2) of section 3.

(2) A child who is an Aadhaar number holder may, within a period of six months

of attaining the eighteen years of age, make an application to the Authority for

cancellation of his Aadhaar number, in such manner as may be specified by regulations

and the Authority shall cancel his Aadhaar number.

Amendment

of Long title

of Act 18 of

2016.

Amendment

of section 3.

Insertion of

new section

3A.

Aadhaar

number of

children.

Amendment

of section 2.

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(3) Notwithstanding anything in section 7, a child shall not be denied any

subsidy, benefit or service under that section in case of failure to establish his identity

by undergoing authentication, or furnishing proof of possession of Aadhaar number,

or in the case of a child to whom no Aadhaar number has been assigned, producing an

application for enrolment.”.

6. In section 4 of the principal Act, for sub-section (3), the following sub-sections

shall be substituted, namely:—

“(3) Every Aadhaar number holder to establish his identity, may voluntarily use

his Aadhaar number in physical or electronic form by way of authentication or offline

verification, or in such other form as may be notified, in such manner as may be

specified by regulations.

Explanation.—For the purposes of this section, voluntary use of the Aadhaar

number by way of authentication means the use of such Aadhaar number only with

the informed consent of the Aadhaar number holder.

(4) An entity may be allowed to perform authentication, if the Authority is

satisfied that the requesting entity is—

(a) compliant with such standards of privacy and security as may be

specified by regulations; and

(b) (i) permitted to offer authentication services under the provisions of

any other law made by Parliament; or

(ii) seeking authentication for such purpose, as the Central Government

in consultation with the Authority, and in the interest of State, may prescribe.

(5) The Authority may, by regulations, decide whether a requesting entity shall

be permitted the use of the actual Aadhaar number during authentication or only an

alternative virtual identity.

(6) Every requesting entity to whom an authentication request is made by an

Aadhaar number holder under sub-section (3) shall inform to the Aadhaar number

holder of alternate and viable means of identification and shall not deny any service to

him for refusing to, or being unable to, undergo authentication.

(7) Notwithstanding anything contained in the foregoing provisions, mandatory

authentication of an Aadhaar number holder for the provision of any service shall take

place if such authentication is required by a law made by Parliament.”.

7. In section 7 of the principal Act, after the words “the Consolidated Fund of India”,

the words “or the Consolidated Fund of State” shall be inserted.

8. In section 8 of the principal Act,—

(a) in sub-section (2),—

(i) in clause (a), after the words “consent of an individual”, the words

“, or in the case of a child obtain the consent of his parent or guardian” shall be

inserted;

(ii) after clause (b), the following proviso shall be inserted, namely:—

“Provided that the requesting entity shall, in case of failure to

authenticate due to illness, injury or infirmity owing to old age or otherwise

or any technical or other reasons, provide such alternate and viable means

of identification of the individual, as may be specified by regulations.”;

(b) in sub-section (3), after the words “for authentication,”, the words “or in the

case of a child, his parent or guardian” shall be inserted.

Amendment

of section 4.

Amendment

of section 8.

Amendment

of section 7.

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9. After section 8 of the principal Act, the following section shall be inserted,

namely:—

“8A. (1) Every offline verification of an Aadhaar number holder shall be performed

in accordance with the provisions of this section.

(2) Every offline verification-seeking entity shall,—

(a) before performing offline verification, obtain the consent of an

individual, or in the case of a child, his parent or guardian, in such manner as

may be specified by regulations; and

(b) ensure that the demographic information or any other information

collected from the individual for offline verification is only used for the purpose

of such verification.

(3) An offline verification-seeking entity shall inform the individual undergoing

offline verification, or in the case of a child, his parent or guardian, the following

details with respect to offline verification, in such manner as may be specified by

regulations, namely:—

(a) the nature of information that may be shared upon offline verification;

(b) the uses to which the information received during offline verification

may be put by the offline verification-seeking entity; and

(c) alternatives to submission of information requested for, if any.

(4) No offline verification-seeking entity shall—

(a) subject an Aadhaar number holder to authentication;

(b) collect, use, or store an Aadhaar number or biometric information of

any individual for any purpose;

(c) take any action contrary to any obligation on it as may be specified by

regulations.”.

10. For section 21 of the principal Act, the following section shall be substituted,

namely:—

“21. (1) The Authority shall appoint such officers and employees as may be

required for the discharge of its functions under this Act.

(2) The salaries and allowances payable to, and the other terms and conditions

of service of, the officers and employees of the Authority shall be such as may be

specified by regulations.”.

11. After section 23 of the principal Act, the following section shall be inserted,

namely:—

“23A. (1) The Authority may for the discharge of its functions under this Act, or

any rules or regulations made thereunder, by order, issue such directions from time to

time to any entity in the Aadhaar ecosystem, as it may consider necessary.

(2) Every direction issued under sub-section (1) shall be complied with by the

entity in the Aadhaar ecosystem to whom such direction is issued.”.

12. For section 25 of the principal Act, the following section shall be substituted,

namely:—

“25. (1) There shall be constituted a Fund to be called the Unique Identification

Authority of India Fund and there shall be credited thereto—

(a) all grants, fees and charges received by the Authority under this Act; and

Substitution of

new section

for section 21.

Officers and

other

employees of

Authority.

Insertion of

new section

23A.

Power of

Authority to

issue

directions.

Substitution

of new

section for

section 25.

Fund.

Insertion of

new section 8A.

Offline

verification

of Aadhaar

number.

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(b) all sums received by the Authority from such other sources as may be

decided upon by the Central Government.

(2) The Fund shall be applied for meeting—

(a) the salaries and allowances payable to the Chairperson and members

and administrative expenses including the salaries, allowances and pension

payable to or in respect of officers and other employees of the Authority; and

(b) the expenses on objects and for purposes authorised by this Act.”.

13. In section 29 of the principal Act,—

(a) for sub-section (3), the following sub-section shall be substituted, namely:—

“(3) No identity information available with a requesting entity or offline

verification-seeking entity shall be—

(a) used for any purpose, other than the purposes informed in writing

to the individual at the time of submitting any information for authentication

or offline verification; or

(b) disclosed for any purpose, other than purposes informed in

writing to the individual at the time of submitting any information for

authentication or offline verification:

Provided that the purposes under clauses (a) and (b) shall be in

clear and precise language understandable to the individual.”;

(b) in sub-section (4), for the words “or core biometric information”, the words

‘‘, demographic information or photograph”, shall be substituted.

14. In section 33 of the principal Act,—

(i) in sub-section (1),—

(a) for the words “District Judge”, the words “Judge of a High Court”

shall be substituted;

(b) in the proviso, after the words “hearing to the Authority”, the words

“and the concerned Aadhaar number holder” shall be inserted;

(c) after the proviso, the following proviso shall be inserted, namely:—

“Provided further that the core biometric information shall not be

disclosed under this sub-section.”;

(ii) in sub-section (2), for the words “Joint Secretary”, the word “Secretary”

shall be substituted.

15. After Chapter VI of the principal Act, the following Chapter shall be inserted,

namely:—

“CHAPTER VIA

CIVIL PENALTIES

33A. (1) Where an entity in the Aadhaar ecosystem fails to comply with the

provision of this Act, the rules or regulations made thereunder or directions issued by

the Authority under section 23A, or fails to furnish any information, document, or

return of report required by the Authority, such entity shall be liable to a civil penalty

which may extend to one crore rupees for each contravention and in case of a

continuing failure, with additional penalty which may extend to ten lakh rupees for

every day during which the failure continues after the first contravention.

(2) The amount of any penalty imposed under this section, if not paid, may be

recovered as if it were an arrear of land revenue.

Amendment

of section 29.

Amendment

of section 33.

Insertion of

new Chapter

VIA.

Penalty for

failure to

comply with

provisions of

this Act, rules,

regulations

and directions.

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33B. (1) For the purposes of adjudication under section 33A and imposing a

penalty thereunder, the Authority shall appoint an officer of the Authority, who is not

below the rank of a Joint Secretary to the Government of India and possessing such

qualification and experience as may be prescribed, to be an Adjudicating Officer for

holding an inquiry in such manner as may be prescribed.

(2) No inquiry under sub-section (1) shall be initiated except by a complaint

made by the Authority.

(3) While holding an inquiry, the Adjudicating Officer shall—

(a) provide the entity in the Aadhaar ecosystem against whom complaint

is made, an opportunity of being heard;

(b) have the power to summon and enforce the attendance of any person

acquainted with the facts and circumstances of the case to give evidence or to

produce any document which, in the opinion of the Adjudicating Officer, may be

useful for or relevant to the subject matter of the inquiry.

(4) If the Adjudicating Officer, on such inquiry, is satisfied that the entity in the

Aadhaar ecosystem has failed to comply with any provision of this Act or the rules or

regulations made thereunder or directions issued by the Authority under section 23A,

or has failed to furnish any information, document, or return of report required by the

Authority, the Adjudicating Officer may, by order, impose such penalty under

section 33A as he thinks fit.

33C. (1) The Telecom Disputes Settlement and Appellate Tribunal established

under section 14 of the Telecom Regulatory Authority of India Act, 1997, shall be

Appellate Tribunal for the purposes of hearing appeals against the decision of the

Adjudicating Officer under this Act.

(2) A person or entity in the Aadhaar ecosystem aggrieved by an order of the

Adjudicating Officer under section 33B, may prefer an appeal to the Appellate Tribunal

within a period of forty-five days from the date of receipt of the order appealed against,

in such form and manner and accompanied with such fee as may be prescribed:

Provided that the Appellate Tribunal may entertain an appeal after the expiry of

the said period of forty-five days if it is satisfied that there was sufficient cause for not

filing it within that period.

(3) On receipt of an appeal under sub-section (2), the Appellate Tribunal may,

after giving the parties to the appeal an opportunity of being heard, pass such orders

thereon as it thinks fit, confirming, modifying or setting aside the order appealed

against.

(4) The Appellate Tribunal shall send a copy of every order made by it to the

parties to the appeal and to the Adjudicating Officer.

(5) Any appeal filed under sub-section (2) shall be dealt with by the Appellate

Tribunal as expeditiously as possible and every endeavour shall be made by it to

dispose of the appeal within six months from the date on which it is presented to it.

(6) The Appellate Tribunal may, for the purpose of deciding an appeal before it,

call for the records relevant to disposing of such appeal and make such orders as it

thinks fit.

33D. The provisions of sections 14-I to 14K (both inclusive), 16 and 17 of the

Telecom Regulatory Authority of India Act, 1997 shall, mutatis mutandis, apply to the

Appellate Tribunal in the discharge of its functions under this Act, as they apply to it

in the discharge of its functions under that Act.

Power to

adjudicate.

Appeals to

Appellate

Tribunal.

24 of 1997.

Procedure and

powers of the

Appellate

Tribunal.

24 of 1997.

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33E. (1) Notwithstanding anything contained in the Code of Civil Procedure, 1908

or in any other law for the time being in force, an appeal shall lie against any order, not

being an interlocutory order, of the Appellate Tribunal to the Supreme Court on any

substantial question of law arising out of such order.

(2) No appeal shall lie against any decision or order made by the Appellate

Tribunal which the parties have consented to.

(3) Every appeal under this section shall be preferred within a period of

forty-five days from the date of the decision or order appealed against:

Provided that the Supreme Court may entertain an appeal after the expiry of the

said period of forty-five days if it is satisfied that there was sufficient cause for not

filing it within that period.

33F. No civil court shall have jurisdiction to entertain any suit or proceeding in

respect of any matter which an Adjudicating Officer appointed under this Act or the

Appellate Tribunal is empowered, by or under this Act to determine, and no injunction

shall be granted by any court or other authority in respect of any action taken or to be

taken in pursuance of any power conferred by or under this Act.”.

16. In section 38 of the principal Act, for the words “three years”, the words

“ten years” shall be substituted.

17. In section 39 of the principal Act, for the words “three years”, the words

“ten years” shall be substituted.

18. For section 40 of the principal Act, the following section shall be substituted,

namely:—

“40. Whoever,—

(a) being a requesting entity, uses the identity information of an individual

in contravention of sub-section (2) of section 8; or

(b) being an offline verification-seeking entity, uses the identity information

of an individual in contravention of sub-section (2) of section 8A,

shall be punishable with imprisonment which may extend to three years or with a fine

which may extend to ten thousand rupees or, in the case of a company, with a fine

which may extend to one lakh rupees or with both.”.

19. In section 42 of the principal Act, for the words “one year”, the words

“three years” shall be substituted.

20. In section 47 of the principal Act, in sub-section (1), the following proviso shall be

inserted, namely:—

“Provided that the court may, on a complaint made by an Aadhaar number

holder or individual take cognizance of any offence punishable under section 34 or 35

or 36 or 37 or 40 or section 41.”.

21. After section 50 of the principal Act, the following section shall be inserted,

namely:—

“50A. Notwithstanding anything contained in the Income-tax Act, 1961 or any

other enactment for the time being in force relating to tax on income, profits or gains,

the Authority shall not be liable to pay income-tax or any other tax in respect of its

income, profits or gains.”.

22. In section 51 of the principal Act, for the words “Member, officer”, the words

“Member or officer” shall be substituted.

Appeal to

Supreme Court

of India.

Civil court not

to have

jurisdiction.

Amendment

of section 38.

Amendment

of section 39.

Substitution of

new section

for section 40.

Penalty for

unauthorised

use by

requesting

entity or

offline

verification-

seeking entity.

Amendment

of section 42.

Amendment of

section 47.

Insertion of

new section

50A.

43 of 1961.

Exemption

from tax on

income.

Amendment

of section 51.

5 of 1908.

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23. In section 53 of the principal Act, in sub-section (2),—

(i) after clause (a), the following clause shall be inserted, namely:—

“(aa) the purpose for which the requesting entity may be allowed by the

Authority to perform authentication under sub-clause (ii) of clause (b) of

sub-section (4) of section 4;”;

(ii) after clause (g), the following clauses shall be inserted, namely:—

“(ga) the qualification and experience of, and the manner of appointment

of, the Adjudicating Officer under sub-section (1) of section 33B;

(gb) the form, manner, and fee for an appeal to be filed under

sub-section (2) of section 33C;”.

24. In section 54 of the principal Act, in sub-section (2),—

(i) for clause (a), the following clause shall be substituted, namely:—

“(a) the entities or group of entities in the Aadhaar ecosystem under

clause (aa), the biometric information under clause (g) and the demographic

information under clause (k), the process of collecting demographic information

and biometric information from the individuals by enrolling agencies under

clause (m), and the modes of offline verification of Aadhaar number holder

under clause (pa) of section 2;”;

(ii) after clause (b), the following clauses shall be inserted, namely:—

“(ba) the manner of generating an alternative virtual identity under

sub-section (4) of section 3;

(bb) the manner in which cancellation of an Aadhaar number may be

carried out under sub-section (2) of section 3A;”;

(iii) after clause (c), the following clauses shall be inserted, namely:—

“(ca) standards of privacy and security to be complied with by the

requesting entities under sub-section (4) of section 4;

(cb) the classification of requesting entities under sub-section (5) of

section 4;”;

(iv) after clause (f), the following clauses shall be inserted, namely:—

“(fa) the alternate and viable means of identification of individual under

the proviso to clause (b) of sub-section (2) of section 8;

(fb) the manner of obtaining consent under clause (a) of sub-section (2),

the manner of providing information to the individual undergoing offline

verification under sub-section (3), and the obligations of offline

verification-seeking entities under clause (c) of sub-section (4) of section 8A;”.

25. Section 57 of the principal Act shall be omitted.

PART III

AMENDMENT TO THE INDIAN TELEGRAPH ACT, 1885

26. In section 4 of the Indian Telegraph Act, 1885, after sub-section (2), the following

sub-sections shall be inserted, namely:—

‘(3) Any person who is granted a license under the first proviso to

sub-section (1) to establish, maintain or work a telegraph within any part of India, shall

identify any person to whom it provides its services by—

Amendment

of section 53.

Amendment

of section 54.

Omission of

section 57.

Amendment

of section 4 of

Act 13 of

1885.

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(a) authentication under the Aadhaar (Targeted Delivery of Financial and

Other Subsidies, Benefits and Services) Act, 2016; or

(b) offline verification under the Aadhaar (Targeted Delivery of Financial

and Other Subsidies, Benefits and Services) Act, 2016; or

(c) use of passport issued under section 4 of the Passports Act, 1967; or

(d) use of any other officially valid document or modes of identification as

may be notified by the Central Government in this behalf.

(4) If any person who is granted a license under the first proviso to

sub-section (1) to establish, maintain or work a telegraph within any part of India is

using authentication under clause (a) of sub-section (3) to identify any person to

whom it provides its services, it shall make the other modes of identification under

clauses (b) to (d) of sub-section (3) also available to such person.

(5) The use of modes of identification under sub-section (3) shall be a voluntary

choice of the person who is sought to be identified and no person shall be denied any

service for not having an Aadhaar number.

(6) If, for identification of a person, authentication under clause (a) of

sub-section (3) is used, neither his core biometric information nor the Aadhaar number

of the person shall be stored.

(7) Nothing contained in sub-sections (3), (4) and (5) shall prevent the Central

Government from specifying further safeguards and conditions for compliance by any

person who is granted a license under the first proviso to sub-section (1) in respect of

identification of person to whom it provides its services.

Explanation.—The expressions “Aadhaar number” and “core biometric

information” shall have the same meanings as are respectively assigned to them in

clauses (a) and (j) of section 2 of the Aadhaar (Targeted Delivery of Financial and

Other Subsidies, Benefits and Services) Act, 2016.’.

PART IV

AMENDMENTS TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

27. In Chapter IV of the Prevention of Money-laundering Act, 2002 (hereafter in this

Part, referred to as the principal Act), before section 12, the following section shall be

inserted, namely:—

‘11A. (1) Every reporting entity shall verify the identity of its clients and the

beneficial owner, by—

(a) authentication under the Aadhaar (Targeted Delivery of Financial and

Other Subsidies, Benefits and Services) Act, 2016 if the reporting entity is a

banking company; or

(b) offline verification under the Aadhaar (Targeted Delivery of Financial

and Other Subsidies, Benefits and Services) Act, 2016; or

(c) use of passport issued under section 4 of the Passports Act, 1967; or

(d) use of any other officially valid document or modes of identification as

may be notified by the Central Government in this behalf:

Provided that the Central Government may, if satisfied that a reporting entity

other than banking company, complies with such standards of privacy and security

under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and

Services) Act, 2016, and it is necessary and expedient to do so, by notification, permit

such entity to perform authentication under clause (a):

18 of 2016.

18 of 2016.

15 of 1967.

18 of 2016.

Insertion of

new section

11A.

15 of 2002.

Verification of

identity by

reporting

entity.

18 of 2016.

18 of 2016.

15 of 1967.

18 of 2016.

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Provided further that no notification under the first proviso shall be issued

without consultation with the Unique Identification Authority of India established

under sub-section (1) of section 11 of the Aadhaar (Targeted Delivery of Financial and

Other Subsidies, Benefits and Services) Act, 2016 and the appropriate regulator.

(2) If any reporting entity performs authentication under clause (a) of

sub-section (1), to verify the identity of its client or the beneficial owner it shall make

the other modes of identification under clauses (b), (c) and (d) of sub-section (1) also

available to such client or the beneficial owner.

(3) The use of modes of identification under sub-section (1) shall be a voluntary

choice of every client or beneficial owner who is sought to be identified and no client

or beneficial owner shall be denied services for not having an Aadhaar number.

(4) If, for identification of a client or beneficial owner, authentication or offline

verification under clause (a) or clause (b) of sub-section (1) is used, neither his core

biometric information nor his Aadhaar number shall be stored.

(5) Nothing in this section shall prevent the Central Government from notifying

additional safeguards on any reporting entity in respect of verification of the identity

of its client or beneficial owner.

Explanation.—The expressions “Aadhaar number” and “core biometric

information” shall have the same meanings as are respectively assigned to them in

clauses (a) and ( j) of section 2 of the Aadhaar (Targeted Delivery of Financial and

Other Subsidies, Benefits and Services) Act, 2016.’.

28. In section 12 of the principal Act, in sub-section (1), clauses (c) and (d) shall be

omitted.

29. In section 73 of the principal Act, in sub-section (2), clauses (j) and (jj) shall be

omitted.

30. (1) The Aadhaar and Other Laws (Amendment) Ordinance, 2019 is hereby repealed.

(2) Notwithstanding the repeal of the said Ordinance, anything done or any action

taken under the said Ordinance shall be deemed to have been done or taken under the

corresponding provisions of this Act.

Amendment

of section 12.

Amendment

of section 73.

Repeal and

savings.

18 of 2016.

Ord. 9 of

2019.

18 of 2016.

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.

BANSHI

DHAR

DUBEY

Digitally signed

by BANSHI DHAR

DUBEY

Date: 2019.07.24

19:46:31 +05'30'

P.R.-38

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P.R.-40

SC - 20

PÀ£ÁðlPÀ gÁdå¥Á®gÀ DzÉñÁ£ÀĸÁgÀ ªÀÄvÀÄÛ CªÀgÀ ºÉ¸Àj£À°è,

Dgï. ²æäªÁ¸À

¸ÀºÁAiÀÄPÀ ¥ÁægÀÆ¥ÀPÁgÀ ªÀÄvÀÄÛ ¥ÀzÀ¤«ÄvÀÛ

¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð,

¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À E¯ÁSÉ.

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229

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¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À ¸ÀaªÁ®AiÀÄ

C¢ü¸ÀÆZÀ£É

¸ÀASÉå: ¸ÀAªÀåE 05 PÉñÁ¥Àæ 2019 (e-office), ¨ÉAUÀ¼ÀÆgÀÄ, ¢£ÁAPÀ: 06-09-2019.

¢£ÁAPÀ: 09-07-2019 gÀAzÀÄ ¨sÁgÀvÀ ¸ÀPÁðgÀzÀ UÉeÉmï£À «±ÉõÀ ¸ÀAaPÉAiÀÄ Part-II Section 1 gÀ°è ¥ÀæPÀlªÁzÀ The Central

Educational Institutions (Reservation in Teachers’ Cadre) Act, 2019 (10 of 2019) C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è

ªÀÄgÀÄ ¥ÀæPÀn¸À¯ÁVzÉ.

THE CENTRAL EDUCATIONAL INSTITUTIONS (RESERVATION IN

TEACHERS' CADRE) ACT, 2019

NO. 10 OF 2019

[9th July, 2019.]

An Act to provide for the reservation of posts in appointments by direct recruitment

of persons belonging to the Scheduled Castes, the Scheduled Tribes, the

socially and educationally backward classes and the economically weaker

sections, to teachers' cadre in certain Central Educational Institutions

established, maintained or aided by the Central Government, and for matters

connected therewith or incidental thereto.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

1. (1) This Act may be called the Central Educational Institutions (Reservation in

Teachers' Cadre) Act, 2019.

(2) It shall be deemed to have come into force on the 7th day of March, 2019.

2. In this Act, unless the context otherwise requires,—

(a) "appropriate authority" means the University Grants Commission established

under the University Grants Commission Act, 1956, or any other authority or body

established by or under a Central Act for the determination, coordination or maintenance

of the standards of higher education in any Central Educational Institution;

Short title and

commencement.

Definitions.

3 of 1956.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 9th July, 2019/Ashadha 18, 1941 (Saka)

The following Act of Parliament received the assent of the President on the

9th July, 2019, and is hereby published for general information:—

PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, CPÉÆÖçgï 24, 2019

230

¨sÁUÀ 4

(b) "branch of study" means a branch of study leading to three principal levels

of qualifications at bachelors (under graduate), masters (post graduate) and doctoral

levels;

(c) "Central Educational Institution" means—

(i) a University established or incorporated by or under a Central Act;

(ii) an institution of national importance established by an Act of

Parliament;

(iii) an institution, declared as an institution deemed to be University

under section 3 of the University Grants Commission Act, 1956, and maintained

by or receiving aid from the Central Government;

(iv) an institution maintained by or receiving aid from the Central

Government, whether directly or indirectly, and affiliated to an institution referred

to in sub-clause (i) or sub-clause (ii), or a constituent unit of an institution

referred to in sub-clause (iii); and

(v) an educational institution established by the Central Government under

the Societies Registration Act, 1860;

(d) "direct recruitment" means the process of appointing faculty by inviting

applications against public advertisement from persons eligible to teach in a Central

Educational Institution;

(e) "economically weaker sections" means such weaker sections as are referred

to in Explanation to clause (6) of article 15 of the Constitution;

(f) "faculty" means the faculty of a Central Educational Institution;

(g) "Minority Educational Institution" means an institution established and

administered by the minorities under clause (1) of article 30 of the Constitution and so

declared by an Act of Parliament or by the Central Government or declared as a Minority

Educational Institution under the National Commission for Minority Educational

Institutions Act, 2004;

(h) "sanctioned strength" means the number of posts in teachers' cadre approved

by the appropriate authority;

(i) "Scheduled Castes" means the Scheduled Castes notified under article 341 of

the Constitution;

(j) "Scheduled Tribes" means the Scheduled Tribes notified under article 342 of

the Constitution;

(k) "socially and educationally backward classes" means such backward classes

as are so deemed under article 342A of the Constitution;

(l) "teachers' cadre" means a class of all the teachers of a Central Educational

Institution, regardless of the branch of study or faculty, who are remunerated at the

same grade of pay, excluding any allowance or bonus.

3. (1) Notwithstanding anything in any other law for the time being in force, there shall

be reservation of posts in direct recruitment out of the sanctioned strength in teachers' cadre

in a Central Educational Institution to the extent and in the manner as may be specified by

the Central Government by notification in the Official Gazette.

(2) For the purpose of reservation of posts, a Central Educational Institution shall be

regarded as one unit.

4. (1) The provisions of section 3 shall not apply to—

(a) the institutions of excellence, research institutions, institutions of national

and strategic importance specified in the Schedule to this Act;

3 of 1956.

21 of 1860.

2 of 2005.

Reservation

of posts in

recruitments

by Central

Educational

Institutions.

Act not

to apply in

certain cases.

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231

¨sÁUÀ 4

(b) a Minority Educational Institution.

(2) The Central Government may, by notification in the Official Gazette, amend the

Schedule referred to in clause (a) of sub-section (1) from time to time.

5. Every notification made by the Central Government under this Act shall be laid, as

soon as may be after it is made, before each House of Parliament while it is in session, for a

total period of thirty days which may be comprised in one session or in two or more successive

sessions, and if, before the expiry of the session immediately following the session or the

successive sessions aforesaid, both Houses agree in making any modification in the

notification or both Houses agree that the notification should not be made, the notification

shall thereafter have effect only in such modified form or be of no effect, as the case may be;

so, however, that any such modification or annulment shall be without prejudice to the

validity of anything previously done under that notification.

6. (1) The Central Educational Institutions (Reservation in Teachers' Cadre)

Ordinance, 2019 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said

Ordinance shall be deemed to have been done or taken under this Act.

Laying of

notifications

before

Parliament.

Ord. 13 of

2019.

Repeal and

savings.

THE SCHEDULE

[See section 4(1)(a)]

Sl. No.

Name of the Institution of Excellence, etc.

(1)

(2)

1.

Homi Bhabha National Institute, Mumbai and its constituent units, namely:—

(i)

Bhabha Atomic Research Centre, Trombay;

(ii)

Indira Gandhi Centre for Atomic Research, Kalpakkam;

(iii)

Raja Ramanna Centre for Advanced Technology, Indore;

(iv)

Institute for Plasma Research, Gandhinagar;

(v)

Variable Energy Cyclotron Centre, Kolkata;

(vi)

Saha Institute of Nuclear Physics, Kolkata;

(vii)

Institute of Physics, Bhubaneshwar;

(viii)

Institute of Mathematical Sciences, Chennai;

(ix)

Harish-Chandra Research Institute, Allahabad;

(x)

Tata Memorial Centre, Mumbai.

2.

Tata Institute of Fundamental Research, Mumbai.

3.

North-Eastern Indira Gandhi Regional Institute of Health and Medical Science,

Shillong.

4.

National Brain Research Centre, Manesar, Gurgaon.

5.

Jawaharlal Nehru Centre for Advanced Scientific Research, Bangalore.

6.

Physical Research Laboratory, Ahmedabad.

7.

Space Physics Laboratory, Thiruvananthapuram.

8.

Indian Institute of Remote Sensing, Dehradun.

P.R - 41

SC - 20

PÀ£ÁðlPÀ gÁdå¥Á®gÀ DzÉñÁ£ÀĸÁgÀ ªÀÄvÀÄÛ CªÀgÀ ºÉ¸Àj£À°è,

Dgï. ²æäªÁ¸À

¸ÀºÁAiÀÄPÀ ¥ÁægÀÆ¥ÀPÁgÀ ªÀÄvÀÄÛ ¥ÀzÀ¤«ÄvÀÛ

¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð,

¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À E¯ÁSÉ.

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.

BANSHI

DHAR

DUBEY

Digitally signed by BANSHI

DHAR DUBEY

Date: 2019.07.09 22:38:57

+05'30'

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Amendment of

section 3A.

Short title and

commencement.

THE HOMOEOPATHY CENTRAL COUNCIL (AMENDMENT)

ACT, 2019

NO. 11 OF 2019

[15th July, 2019.]

An Act further to amend the Homoeopathy Central Council Act, 1973.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

1. (1) This Act may be called the Homoeopathy Central Council (Amendment)

Act, 2019.

(2) It shall come into force on the 2nd day of March, 2019.

2. In section 3A of the Homoeopathy Central Council Act, 1973, in sub-section (2), for

the words "within a period of one year", the words "within a period of two years" shall be

substituted.

3. (1) The Homoeopathy Central Council (Amendment) Ordinance, 2019 is hereby

repealed.

Ord. 11 of

2019.

Repeal and

savings.

59 of 1973.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 15th July, 2019/Ashadha 24, 1941 (Saka)

The following Act of Parliament received the assent of the President on the

15th July, 2019, and is hereby published for general information:—

(2) Notwithstanding such repeal, anything done or any action taken under the

Homoeopathy Central Council Act, 1973, as amended by the said Ordinance, shall be deemed

to have been done or taken under the corresponding provisions of the said Act as amended

by this Act.

59 of 1973.

¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À ¸ÀaªÁ®AiÀÄ

C¢ü¸ÀÆZÀ£É

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¢£ÁAPÀ: 22-05-2019 gÀAzÀÄ ¨sÁgÀvÀ ¸ÀPÁðgÀzÀ UÉeÉmï£À «±ÉõÀ ¸ÀAaPÉAiÀÄ Part-II Section 1 gÀ°è ¥ÀæPÀlªÁzÀ The

Homoeoapathy Central Council (Amendment) Act, 2019 (11 of 2019) C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ

¥ÀæPÀn¸À¯ÁVzÉ.

BANSHI

DHAR

DUBEY

Digitally signed

by BANSHI DHAR

DUBEY

Date: 2019.07.15

22:21:19 +05'30'

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.

P.R - 42

SC - 20

PÀ£ÁðlPÀ gÁdå¥Á®gÀ DzÉñÁ£ÀĸÁgÀ ªÀÄvÀÄÛ CªÀgÀ ºÉ¸Àj£À°è,

Dgï. ²æäªÁ¸À

¸ÀºÁAiÀÄPÀ ¥ÁægÀÆ¥ÀPÁgÀ ªÀÄvÀÄÛ ¥ÀzÀ¤«ÄvÀÛ

¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð,

¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À E¯ÁSÉ.

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¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À ¸ÀaªÁ®AiÀÄ

C¢ü¸ÀÆZÀ£É

¸ÀASÉå: ¸ÀAªÀåE 04 PÉñÁ¥Àæ 2019(e-Office), ¨ÉAUÀ¼ÀÆgÀÄ, ¢£ÁAPÀ: 06-09-2019.

¢£ÁAPÀ: 09-07-2019 gÀAzÀÄ ¨sÁgÀvÀ ¸ÀPÁðgÀzÀ UÉeÉmï£À «±ÉõÀ ¸ÀAaPÉAiÀÄ Part-II Section 1 gÀ°è ¥ÀæPÀlªÁzÀ The

Jammu and Kashmir Reservation (Amendment) Act, 2019 (No. 9 of 2019) C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ

¥ÀæPÀn¸À¯ÁVzÉ.

THE JAMMU AND KASHMIR RESERVATION (AMENDMENT)

ACT, 2019

NO. 9 OF 2019

[9th July, 2019.]

An Act further to amend the Jammu and Kashmir Reservation Act, 2004.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as

follows:—

1. (1) This Act may be called the Jammu and Kashmir Reservation (Amendment)

Act, 2019.

(2) It shall be deemed to have come into force on the 1st day of March, 2019.

2. In section 2 of the Jammu and Kashmir Reservation Act, 2004 (hereinafter referred to

as the principal Act), in clause (o),—

(a) for sub-clause (ii), the following sub-clause shall be substituted, namely:—

"(ii) the persons residing in the area adjoining Actual Line of Control and

International Border; and";

Short title and

commencement.

Amendment

of section 2.

XIV of 2004.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 9th July, 2019/Ashadha 18, 1941 (Saka)

The following Act of Parliament received the assent of the President on the

9th July, 2019, and is hereby published for general information:—

(b) in second proviso, in clause (ix), in the proviso, for the words "Actual Line

of Control", the words "Actual Line of Control or International Border" shall be

substituted.

3. In section 3 of the principal Act, in sub-section (2), for the words "Line of Actual

Control", the words "Actual Line of Control or International Border" shall be substituted.

4. (1) The Jammu and Kashmir Reservation (Amendment) Ordinance, 2019 is hereby

repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said

Ordinance shall be deemed to have been done or taken under this Act.

Ord. 8 of

2019.

Amendment

of section 3.

Repeal and

savings.

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.

BANSHI

DHAR

DUBEY

Digitally signed

by BANSHI DHAR

DUBEY

Date: 2019.07.09

22:36:21 +05'30'

P.R - 43

SC - 20

PÀ£ÁðlPÀ gÁdå¥Á®gÀ DzÉñÁ£ÀĸÁgÀ ªÀÄvÀÄÛ CªÀgÀ ºÉ¸Àj£À°è,

Dgï. ²æäªÁ¸À

¸ÀºÁAiÀÄPÀ ¥ÁægÀÆ¥ÀPÁgÀ ªÀÄvÀÄÛ ¥ÀzÀ¤«ÄvÀÛ

¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð,

¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À E¯ÁSÉ.

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¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À ¸ÀaªÁ®AiÀÄ

C¢ü¸ÀÆZÀ£É

¸ÀASÉå: ¸ÀAªÀåE 02 PÉñÁ¥Àæ 2019, ¨ÉAUÀ¼ÀÆgÀÄ, ¢£ÁAPÀ: 06-09-2019.

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(Ninety Seventh Amendment) Act, 2011£À Corrigenda C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ ¥ÀæPÀn¸À¯ÁVzÉ.

P.R - 44

SC - 20

PÀ£ÁðlPÀ gÁdå¥Á®gÀ DzÉñÁ£ÀĸÁgÀ ªÀÄvÀÄÛ CªÀgÀ ºÉ¸Àj£À°è,

Dgï. ²æäªÁ¸À

¸ÀºÁAiÀÄPÀ ¥ÁægÀÆ¥ÀPÁgÀ ªÀÄvÀÄÛ ¥ÀzÀ¤«ÄvÀÛ

¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð,

¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À E¯ÁSÉ.

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¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À ¸ÀaªÁ®AiÀÄ

C¢ü¸ÀÆZÀ£É

¸ÀASÉå: ¸ÀAªÀåE 03 PÉñÁ¥Àæ 2019, ¨ÉAUÀ¼ÀÆgÀÄ, ¢£ÁAPÀ: 06-09-2019.

¢£ÁAPÀ: 08-07-2019 gÀAzÀÄ ¨sÁgÀvÀ ¸ÀPÁðgÀzÀ UÉeÉmï£À «±ÉõÀ ¸ÀAaPÉAiÀÄ Part-II Section 1 gÀ°è ¥ÀæPÀlªÁzÀ The Special

Economic Zones (Amendment) Act, 2019 (No. 8 of 2019) C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ ¥ÀæPÀn¸À¯ÁVzÉ.

P.R - 45

SC - 20

PÀ£ÁðlPÀ gÁdå¥Á®gÀ DzÉñÁ£ÀĸÁgÀ ªÀÄvÀÄÛ CªÀgÀ ºÉ¸Àj£À°è,

Dgï. ²æäªÁ¸À

¸ÀºÁAiÀÄPÀ ¥ÁægÀÆ¥ÀPÁgÀ ªÀÄvÀÄÛ ¥ÀzÀ¤«ÄvÀÛ

¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð,

¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À E¯ÁSÉ.

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236

¨sÁUÀ 4

THE BANNING OF UNREGULATED DEPOSIT

SCHEMES ACT, 2019

NO. 21 OF 2019

[31st July, 2019.]

An Act to provide for a comprehensive mechanism to ban the 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.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Banning of Unregulated Deposit Schemes Act, 2019.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) It shall be deemed to have come into force on the 21st day of February, 2019.

Short title,

extent and

commencement.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 31st July, 2019/Shravana 9, 1941 (Saka)

The following Act of Parliament received the assent of the President on the

31st July, 2019, and is hereby published for general information:—

¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À ¸ÀaªÁ®AiÀÄ

C¢ü¸ÀÆZÀ£É

¸ÀASÉå: ¸ÀAªÀåE 15 PÉñÁ¥Àæ 2019 (e), ¨ÉAUÀ¼ÀÆgÀÄ, ¢£ÁAPÀ: 17-09-2019.

¢£ÁAPÀ: 31-07-2019 gÀAzÀÄ ¨sÁgÀvÀ ¸ÀPÁðgÀzÀ UÉeÉmï£À «±ÉõÀ ¸ÀAaPÉAiÀÄ Part-II Section 1 gÀ°è ¥ÀæPÀlªÁzÀ The Banning of

Unregulated Deposit Schemes Act, 2019 (No. 21 of 2019) C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ ¥ÀæPÀn¸À¯ÁVzÉ.

2. In this Act, unless the context otherwise requires,—

(1) “appropriate Government” means in respect of matters relating to,—

(i) the Union territory without legislature, the Central Government;

(ii) the Union territory of Puducherry, the Government of that Union

territory;

(iii) the Union territory of Delhi, the Government of that Union

territory; and

(iv) the State, the State Government;

Definitions.

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237

¨sÁUÀ 4

(2) “company” shall have the same meaning as assigned to it in clause (20) of

section 2 of the Companies Act, 2013;

(3) “Competent Authority” means an Authority appointed by the appropriate

Government under section 7;

(4) “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 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—

(a) amounts received as loan from a scheduled bank or a co-operative

bank or any other banking company as defined in section 5 of the Banking

Regulation Act, 1949;

(b) amounts received as loan or financial assistance from the Public

Financial Institutions notified by the Central Government in consultation with

the Reserve Bank of India or any non-banking financial company as defined in

clause (f) of section 45-I of the Reserve Bank of India Act, 1934 and is registered

with the Reserve Bank of India or any Regional Financial Institutions or

insurance companies;

(c) amounts received from the appropriate Government, or any amount

received from any other source whose repayment is guaranteed by the

appropriate Government, or any amount received from a statutory authority

constituted under an Act of Parliament or a State Legislature;

(d) amounts received from foreign Governments, foreign or international

banks, multilateral financial institutions, foreign Government owned

development financial institutions, foreign export credit collaborators, foreign

bodies corporate, foreign citizens, foreign authorities or person resident outside

India subject to the provisions of the Foreign Exchange Management Act, 1999

and the rules and regulations made thereunder;

(e) amounts received by way of contributions towards the capital by

partners of any partnership firm or a limited liability partnership;

(f) amounts received by an individual by way of loan from his relatives or

amounts received by any firm by way of loan from the relatives of any of its

partners;

(g) amounts received as credit by a buyer from a seller on the sale of any

property (whether movable or immovable);

(h) amounts received by an asset re-construction company which is

registered with the Reserve Bank of India under section 3 of the Securitisation

and Reconstruction of Financial Assets and Enforcement of Security Interest

Act, 2002;

18 of 2013.

10 of 1949.

2 of 1934.

42 of 1999.

54 of 2002.

PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, CPÉÆÖçgï 24, 2019

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¨sÁUÀ 4

(i) any deposit made under section 34 or an amount accepted by a political

party under section 29B of the Representation of the People Act, 1951;

(j) any periodic payment made by the members of the self-help groups

operating within such ceilings as may be prescribed by the State Government

or Union territory Government;

(k) any other amount collected for such purpose and within such ceilings

as may be prescribed by the State Government;

(l) an amount received in the course of, or for the purpose of, business

and bearing a genuine connection to such business including—

(i) payment, advance or part payment for the supply or hire of

goods or provision of services and is repayable in the event the goods or

services are not in fact sold, hired or otherwise provided;

(ii) advance received in connection with consideration of an

immovable property under an agreement or arrangement subject to the

condition that such advance is adjusted against such immovable property

as specified in terms of the agreement or arrangement;

(iii) security or dealership deposited for the performance of the

contract for supply of goods or provision of services; or

(iv) an advance under the long-term projects for supply of capital

goods except those specified in item (ii):

Provided that if the amounts received under items (i) to (iv) become

refundable, such amounts shall be deemed to be deposits on the expiry

of fifteen days from the date on which they become due for refund:

Provided further that where the said amounts become refundable,

due to the deposit taker not obtaining necessary permission or approval

under the law for the time being in force, wherever required, to deal in the

goods or properties or services for which money is taken, such amounts

shall be deemed to be deposits.

Explanation.—For the purposes of this clause,—

(i) in respect of a company, the expression “deposit” shall

have the same meaning as assigned to it under the Companies

Act, 2013;

(ii) in respect of a non-banking financial company registered

under the Reserve Bank of India Act, 1934, the expression “deposit”

shall have the same meaning as assigned to it in clause (bb) of

section 45-I of the said Act;

(iii) the expressions “partner” and “firm” shall have the

meanings respectively assigned to them under the Indian

Partnership Act, 1932;

(iv) the expression “partner” in respect of a limited liability

partnership shall have the same meaning as assigned to it in

clause (q) of sub-section (1) of section 2 of the Limited Liability

Partnership Act, 2008;

(v) the expression “relative” shall have the same meaning as

assigned to it in the Companies Act, 2013;

(5) “depositor” means any person who makes a deposit under this Act;

(6) “deposit taker” means—

(i) any individual or group of individuals;

43 of 1951.

18 of 2013.

6 of 2009.

9 of 1932.

2 of 1934.

18 of 2013.

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(ii) a proprietorship concern;

(iii) a partnership firm (whether registered or not);

(iv) a limited liability partnership registered under the Limited Liability

Partnership Act, 2008;

(v) a company;

(vi) an association of persons;

(vii) a trust (being a private trust governed under the provisions of the

Indian Trusts Act, 1882 or a public trust, whether registered or not);

(viii) a co-operative society or a multi-State co-operative society; or

(ix) any other arrangement of whatsoever nature, receiving or soliciting

deposits, but does not include—

(i) a Corporation incorporated under an Act of Parliament or a State

Legislature;

(ii) a banking company, a corresponding new bank, the State Bank

of India, a subsidiary bank, a regional rural bank, a co-operative bank or

a multi-State co-operative bank as defined in the Banking Regulation

Act,1949;

(7) “Designated Court” means a Designated Court constituted by the appropriate

Government under section 8;

(8) “insurer” shall have the same meaning as assigned to it in clause (9) of

section 2 of the Insurance Act, 1938;

(9) “notification” means a notification published in the Official Gazette and the

expression “notify” shall be construed accordingly;

(10) “person” includes—

(i) an individual;

(ii) a Hindu Undivided Family;

(iii) a company;

(iv) a trust;

(v) a partnership firm;

(vi) a limited liability partnership;

(vii) an association of persons;

(viii) a co-operative society registered under any law for the time being

in force relating to co-operative societies; or

(ix) every artificial juridical person, not falling within any of the preceding

sub-clauses;

(11) “prescribed” means prescribed by the rules made by the Central Government

or, as the case may be, the State Government under this Act;

(12) “property” means any property or assets of every description, whether

corporeal or incorporeal, movable or immovable, tangible or intangible, and includes

deeds and instruments evidencing title to, or interest in, such property or assets,

wherever located;

(13) “public financial institution” shall have the same meaning as assigned to

it in clause (72) of section 2 of the Companies Act, 2013;

(14) “Regulated Deposit Scheme” means the Schemes specified under

column (3) of the First Schedule;

6 of 2009.

2 of 1882.

10 of 1949.

4 of 1938.

18 of 2013.

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(15) “Regulator” means the Regulator specified in column (2) of the First

Schedule;

(16) “Schedule” means the Schedule appended to this Act;

(17) “Unregulated Deposit Scheme” means a Scheme or an arrangement under

which deposits are accepted or solicited by any deposit taker by way of business and

which is not a Regulated Deposit Scheme, as specified under column (3) of the First

Schedule.

CHAPTER II

BANNING OF UNREGULATED DEPOSIT SCHEMES

3. On and from the date of commencement of this Act,—

(a) the Unregulated Deposit Schemes shall be banned; and

(b) no deposit taker shall, directly or indirectly, promote, operate, issue any

advertisement soliciting participation or enrolment in or accept deposits in pursuance

of an Unregulated Deposit Scheme.

4. No deposit taker, while accepting deposits pursuant to a Regulated Deposit Scheme,

shall commit any fraudulent default in the repayment or return of deposit on maturity or in

rendering any specified service promised against such deposit.

5. No person by whatever name called shall knowingly make any statement, promise

or forecast which is false, deceptive or misleading in material facts or deliberately conceal

any material facts, to induce another person to invest in, or become a member or participant

of any Unregulated Deposit Scheme.

6. A prize chit or a money circulation scheme banned under the provisions of the Prize

Chits and Money Circulation Scheme (Banning) Act, 1978 shall be deemed to be an

Unregulated Deposit Scheme under this Act.

CHAPTER III

AUTHORITIES

7. (1) The appropriate Government shall, by notification, appoint one or more officers

not below the rank of Secretary to that Government, as the Competent Authority for the

purposes of this Act.

(2) The appropriate Government may, by notification, appoint such other officer or

officers as it thinks fit, to assist the Competent Authority in discharging its functions under

this Act.

(3) Where the Competent Authority or officers appointed under sub-section (2), for

the purposes of this section, has reason to believe (the reason for such belief to be recorded

in writing), on the basis of such information and particulars as may be prescribed, that any

deposit taker is soliciting deposits in contravention of section 3, he may, by an order in

writing, provisionally attach the deposits held by the deposit taker and the money or other

property acquired either in the name of the deposit taker or in the name of any other person

on behalf of the deposit taker from the date of the order, in such manner as may be prescribed.

(4) The Competent Authority shall, for the purposes of sub-section (3), have the

same powers as vested in a civil court under the Code of Civil Procedure, 1908 while

conducting investigation or inquiry in respect of the following matters, namely:—

(a) discovery and inspection;

(b) enforcing the attendance of any person, including any officer of a reporting

entity and examining him on oath;

5 of 1908.

Banning of

Unregulated

Deposit

Schemes.

43 of 1978.

Fraudulent

default in

Regulated

Deposit

Schemes.

Wrongful

inducement in

relation to

Unregulated

Deposit

Schemes.

Certain

scheme to be

Unregulated

Deposit

Scheme.

Competent

Authority.

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(c) compelling the production of records;

(d) receiving evidence on affidavits;

(e) issuing commissions for examination of witnesses and documents; and

(f) any other matter which may be prescribed.

(5) The Competent Authority shall have power to summon any person whose

attendance he considers necessary whether to give evidence or to produce any records

during the course of any investigation or proceeding under this section.

(6) All the persons so summoned shall be bound to attend in person or through

authorised agents, as such officer may direct, and shall be bound to state the truth upon

any subject respecting which they are examined or make statements, and produce such

documents as may be required.

(7) Every proceeding under sub-sections (4) and (5) shall be deemed to be a judicial

proceeding within the meaning of section 193 and section 228 of the Indian Penal Code.

(8) Subject to any rules made in this behalf by the Central Government, any officer

referred to in sub-section (2) may impound and retain in his custody for such period, as

he thinks fit, any records produced before him in any proceedings under this Act:

Provided that the officer or officers referred to in sub-section (2) shall not—

(a) impound any records without recording his reasons for so doing; or

(b) retain in his custody any such records for a period exceeding three months,

without obtaining the previous approval of the Competent Authority.

8. (1) The appropriate Government shall, with the concurrence of the Chief Justice

of the concerned High Court, by notification, constitute one or more Courts known as

the Designated Courts for such area or areas or such case or cases as may be specified

in such notification, which shall be presided over by a Judge not below the rank of a

District and Sessions Judge or Additional District and Sessions Judge.

(2) No Court other than the Designated Court shall have jurisdiction in respect of

any matter to which the provisions of this Act apply.

(3) When trying an offence under this Act, the Designated Court may also try an

offence, other than an offence under this Act, with which the accused may, under the

Code of Criminal Procedure, 1973, be charged at the same trial.

CHAPTER IV

INFORMATION ON DEPOSIT TAKERS

9. (1) The Central Government may designate an authority, whether existing or to

be constituted, which shall create, maintain and operate an online database for information

on deposit takers operating in India.

(2) The authority designated under sub-section (1) may require any Regulator or

the Competent Authority to share such information on deposit takers, as may be

prescribed.

10. (1) Every deposit taker which commences or carries on its business as such on

or after the commencement of this Act shall intimate the authority referred to in

sub-section (1) of section 9 about its business in such form and manner and within such

time, as may be prescribed.

(2) The Competent Authority may, if it has reason to believe that the deposits are

being solicited or accepted pursuant to an Unregulated Deposit Scheme, direct any

deposit taker to furnish such statements, information or particulars, as it considers

necessary, relating to or connected with the deposits received by such deposit taker.

45 of 1860.

Designated

Court.

Information

of business by

deposit taker.

Central

database.

2 of 1974.

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Explanation.—For the removal of doubts, it is hereby clarified that—

(a) the requirement of intimation under sub-section (1) is applicable to deposit

takers accepting or soliciting deposits as defined in clause (4) of section 2; and

(b) the requirement of intimation under sub-section (1) applies to a company,

if the company accepts the deposits under Chapter V of the Companies Act, 2013.

11. (1) The Competent Authority shall share all information received under

section 29 with the Central Bureau of Investigation and with the authority which may be

designated by the Central Government under section 9.

(2) The appropriate Government, any Regulator, income-tax authorities or any

other investigation agency, having any information or documents in respect of the offence

investigated under this Act by the police or the Central Bureau of Investigation, shall

share all such information or documents with the police or the Central Bureau of

Investigation.

(3) Where the principal officer of any banking company, a corresponding new

bank, the State Bank of India, a subsidiary bank, a regional rural bank, a co-operative

bank or a multi-State co-operative bank has reason to believe that any client is a deposit

taker and is acting in contravention to the provisions of this Act, he shall forthwith

inform the same to the Competent Authority.

CHAPTER V

RESTITUTION TO DEPOSITORS

12. Save as otherwise provided in the Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act, 2002 or the Insolvency and Bankruptcy

Code, 2016, any amount due to depositors from a deposit taker shall be paid in priority

over all other debts and all revenues, taxes, cesses and other rates payable to the

appropriate Government or the local authority.

13. (1) Save as otherwise provided in the Securitisation and Reconstruction of

Financial Assets and Enforcement of Security Interest Act, 2002 or the Insolvency and

Bankruptcy Code, 2016, an order of provisional attachment passed by the Competent

Authority, shall have precedence and priority, to the extent of the claims of the depositors,

over any other attachment by any authority competent to attach property for repayment

of any debts, revenues, taxes, cesses and other rates payable to the appropriate

Government or the local authority.

(2) Where an order of provisional attachment has been passed by the Competent

Authority—

(a) such attachment shall continue until an order is passed under

sub-section (3) or sub-section (5) of section 15 by the Designated Court;

(b) all the attached money or property of the deposit taker and the persons

mentioned therein shall vest in the Competent Authority and shall remain so vested

till further order of the Designated Court.

(3) The Competent Authority shall open an account in a scheduled bank for the

purpose of crediting and dealing with the money realised under this Act, which shall not

be utilised except under the instructions of the Designated Court.

(4) The Competent Authority shall not dispose of or alienate the property or money

attached, except in accordance with the order of the Designated Court under

sub-section (3) or sub-section (5) of section 15.

Information

to be shared.

Priority of

depositors'

claim.

Precedence of

attachment.

18 of 2013.

54 of 2002.

31 of 2016.

54 of 2002.

31 of 2016.

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(5) Notwithstanding anything contained in sub-section (4), the Competent Authority

may, if it thinks it expedient, order the immediate sale of perishable items or assets, and the

proceeds of the sale shall be utilised in the same manner as provided for other property.

14. (1) The Competent Authority shall, within a period of thirty days, which may

extend up to sixty days, for reasons to be recorded in writing, from the date of the order of

provisional attachment, file an application with such particulars as may be prescribed,

before the Designated Court for making the provisional attachment absolute, and for

permission to sell the property so attached by public auction or, if necessary, by private

sale.

(2) In case where the money or property has been attached on the permission granted

by a Designated Court in another State or Union territory, the application for confirmation

of such attachment shall be filed in that Court.

15. (1) Upon receipt of an application under section 14, the Designated Court shall

issue notice to—

(a) the deposit taker; and

(b) any person whose property is attached under section 14,

to show cause, within a period of thirty days from the date of issue of notice, as to why the

order of attachment should not be made absolute and the properties so attached be sold.

(2) The Designated Court shall also issue notice to all other persons represented to

it as having or being likely to claim any interest or title in the property, to appear on the same

date as persons referred to in sub-section (1) to raise objections, if they so desire, to the

attachment of the property.

(3) The Designated Court shall, after adopting such procedure as may be prescribed,

pass an order—

(a) making the provisional order of attachment absolute; or

(b) varying it by releasing a portion of the property from attachment; or

(c) cancelling the provisional order of attachment,

and in case of an order under clause (a) or clause (b), direct the Competent Authority to sell

the property so attached by public auction or, if necessary, by private sale and realise the

sale proceeds.

(4) The Designated Court shall not, in varying or cancelling the provisional order of

attachment, release any property from attachment, unless it is satisfied that—

(a) the deposit taker or the person referred to in sub-section (1) has interest in

such property; and

(b) there shall remain an amount or property sufficient for repayment to the

depositors of such deposit taker.

(5) The Designated Court shall pass such order or issue such direction as may be

necessary for the equitable distribution among the depositors of the money attached or

realised out of the sale.

(6) The Designated Court shall endeavour to complete the proceedings under this

section within a period of one hundred and eighty days from the date of receipt of the

application referred to in sub-section (1).

16. (1) Where the Designated Court is satisfied that there is a reasonable cause for

believing that the deposit taker has transferred any property otherwise than in good

faith and not for commensurate consideration, it may, by notice, require any transferee of

such property, whether or not he received the property directly from the said deposit

Confirmation

of attachment

by Designated

Court.

Attachment

of property of

mala fide

transferees.

Application

for

confirmation

of attachment

and sale of

property.

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taker, to appear on a date to be specified in the notice and show cause why so much of

the transferee’s property as is equivalent to the proper value of the property transferred

should not be attached.

(2) Where the said transferee does not appear and show cause on the specified

date or where the Designated Court is satisfied that the transfer of the property to the

said transferee was not a bona fide transfer and not for commensurate consideration, it

shall order the attachment of so much of the said transferee’s property as in its opinion

is equivalent to the proper value of the property transferred.

17. (1) Any deposit taker or a person referred to in sub-section (1) of section 15, or

transferee referred to in section 16 whose property is about to be attached or has been

provisionally attached under this Act, may, at any time before the confirmation of

attachment, apply to the Designated Court for permission to deposit the fair value of the

property in lieu of attachment.

(2) While allowing the deposit taker or person or transferee referred to in

sub-section (1) to make the deposit under sub-section (1), the Designated Court may

order such deposit taker or person or transferee to pay any sum towards costs as may be

applicable.

18. (1) The Designated Court shall exercise the following powers, namely:—

(a) power to approve the statement of dues of the deposit taker due from

various debtors;

(b) power to assess the value of the assets of the deposit taker and finalise

the list of the depositors and their respective dues;

(c) power to direct the Competent Authority to take possession of any assets

belonging to or in the control of the deposit taker and to sell, transfer or realise the

attached assets, either by public auction or by private sale as it deems fit depending

upon the nature of assets and credit the sale proceeds thereof to its bank account;

(d) power to approve the necessary expenditure to be incurred by the

Competent Authority for taking possession and realisation of the assets of the

deposit taker;

(e) power to pass an order for full payment to the depositors by the Competent

Authority or an order for proportionate payment to the depositors in the event, the

money so realised is not sufficient to meet the entire deposit liability;

(f) power to direct any person, who has made profit or averted loss by

indulging in any transaction or activity in contravention of the provisions of this

Act, to disgorge an amount equivalent to the wrongful gain made or loss averted

by such contravention; and

(g) power to pass any other order which the Designated Court deems fit for

realisation of assets of the deposit taker and for repayment of the same to the

depositors of such deposit taker or on any other matter or issue incidental thereto.

(2) On the application of any person interested in any property attached and

vested in the Competent Authority under this Act and after giving such Competent

Authority an opportunity of being heard, make such order as the Designated Court

considers just and reasonable for—

(a) providing from such of the property attached and vested in the Competent

Authority as the applicant claims an interest in, such sums as may be reasonably

necessary for the maintenance of the applicant and of his family, and for expenses

connected with the defence of the applicant where criminal proceedings have been

initiated against him in the Designated Court under this Act; or

Payment in

lieu of

attachment.

Powers of

Designated

Court.

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(b) safeguarding, so far as may be practicable, the interest of any business

affected by the attachment.

Explanation.—For the purposes of this section, the expression “deposit

taker” includes the directors, promoters, managers or members of said establishment

or any other person whose property or assets have been attached under this Act.

19. Any person including the Competent Authority, if aggrieved by any final order

of the Designated Court under this Chapter, may appeal to the High Court, within a

period of sixty days from the date of such order:

Provided that the High Court may entertain the appeal after the expiry of the said

period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause

from preferring the appeal in time.

Explanation.—The expression “High Court” means the High Court of a State or

Union territory where the Designated Court is situated.

20. (1) Whenever it is made to appear to the Supreme Court that there is a default

in any deposit scheme or deposit schemes of the nature referred to in section 30, the

Supreme Court may, by an order, direct that any particular case be transferred from one

Designated Court to another Designated Court.

(2) The Supreme Court may act under this section only on an application filed by

the Competent Authority or any interested party, and every such application shall be

supported by an affidavit.

(3) Where an application for the exercise of the powers conferred by this section is

dismissed, the Supreme Court may, if it is of opinion that the application was frivolous or

vexatious, order the applicant to pay by way of compensation to any person who has

opposed the application such sum not exceeding fifty thousand rupees as it may consider

appropriate in the circumstances of the case.

CHAPTER VI

OFFENCES AND PUNISHMENTS

21. (1) Any deposit taker who solicits deposits in contravention of section 3 shall

be punishable with imprisonment for a term which shall not be less than one year but

which may extend to five years and with fine which shall not be less than two lakh

rupees but which may extend to ten lakh rupees.

(2) Any deposit taker who accepts deposits in contravention of section 3 shall be

punishable with imprisonment for a term which shall not be less than two years but

which may extend to seven years and with fine which shall not be less than three lakh

rupees but which may extend to ten lakh rupees.

(3) Any deposit taker who accepts deposits in contravention of section 3 and

fraudulently defaults in repayment of such deposits or in rendering any specified service,

shall be punishable with imprisonment for a term which shall not be less than three years

but which may extend to ten years and with fine which shall not be less than five lakh

rupees but which may extend to twice the amount of aggregate funds collected from the

subscribers, members or participants in the Unregulated Deposit Scheme.

Explanation.—For the purposes of this Act,—

(i) the expression “fraudulently” shall have the same meaning as assigned to

it in section 25 of the Indian Penal Code;

(ii) where the terms of the Deposit Scheme are entirely impracticable or

unviable, the terms shall be relevant facts showing an intention to defraud.

Appeal to

High Court.

Power of

Supreme Court

to transfer

cases.

Punishment

for

contravention

of section 3.

45 of 1860