Reg. No. G-2/RNP/GOA/32/2018-20
RNI No. GOAENG/2002/6410
Panaji, 28th November, 2019 (Agrahayana 7, 1941) SERIES I No. 35 PUBLISHED BY AUTHORITY
NOTE
There is one Extraordinary issue to the Official Gazette, Series I No. 34 dated 21-11-2019, namely, Extraordinary dated 25-11-2019 from pages 1031 to 1032 from Department of Finance (R&C), Not. No. 38/1/2017-Fin(R&C)(26/2019-Rate) regarding Amendment of Government Notification dated 30-6-2019.
INDEX
Department Order/Notification Subject Pages
1. Education, Art & Culture Not.- DE/AE/3/216/17 Marg Suraksha Scheme. 1033 Director
-18/416
2. Finance T.C.-CCT/26-2/2018-19 Trade Circular.
Commercial Taxes /2180 Commissioner
1034
3.a. Law & Judiciary Not.- 10/4/2019-LA-279 The Banning of Unregulated Deposit Schemes 1036 Joint Secy.
Act, 2019.
b. -do- Not.- 10/4/2019-LA-280 The Companies (Amendment) Act, 2019. 1053
4. Public Health Not..- 38/164/2013-I/PHD/ Amendment to Deen Dayal Swasthya Seva 1063 Under Secretary (Part-VII)/2602 Yojana Scheme.
5. Revenue Ord.- 35/4/2016-RD/2387 Amendment to Government Order dated 1064 Under Secretary
30-3-2017.
GOVERNMENT OF GOA
Department of Education Art, & Culture
Directorate of Education
——
Notification
DE/AE/3/216/17-18
'Marg Suraksha' A Grant-in-Aid Scheme for Creating Awareness on Road Safety.
1. Short title, application and commence- ment.— (a) This scheme may be called, "Marg Suraksha" a Grant-in-Aid Scheme for Creating Awareness on Road Safety".
(b) It shall be applicable to Recognized Schools and Colleges in the State of Goa and operated by the Directorate of Education.
(c) This scheme shall come into effect with effect from the date of its publication in the Goa Government Official Gazette.
2. Objectives of the scheme.— The objective of the scheme is to promote awareness on Road Safety and Civic Responsibilities among students by establishing Civic Clubs in the Schools and Colleges in the State besides, to promote harmony and the spirit of brotherhood especially among students transcending Religious, Linguistic and Regional or Sectional diversities.
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 20193. Suggestive Activities.— (a) To prepare, print and circulate literature/resource material on Citizenship and Civic responsibilities.
(b) To conduct 'Training of Trainers' (ToT) for preparing teams of trainers, who will impart training to the members of the Civic Clubs.
(c) Organize seminars, conferences, debates, meetings etc. on Citizenship & Civic Sense.
(d) Formation of Peoples Teams working for realization of Citizenship and Civic Sense values.
4. Procedure for Application.— (a) The Organization shall submit their application in the Prescribed Format along with the required documents to the Directorate of Education.
(i) Registration Certificate of the
Organization.
(ii) Approval copy of Management.
(iii) Copy of Business of the Organization.
(iv) Copy of the latest Audited Statement of
the Organization by Chartered Accounts.
(v) Under taking specifying that organization is not availing any other financial benefits under any other Schemes of Government of Goa.
5. Procedure for Payment.— (a) The applications received by the Directorate of Education shall be scrutinized and placed for sanction by the Director of Education.
(b) The amount will be transferred in the account of the concerned organization under Direct Benefit Transfer System.
(c) The disbursement will be made as per the availability of funds in the budgetary provisions made for the financial year corresponding to the academic year concerned.
(d) The financial support under this scheme shall not be available to those who availing financial benefits under any other scheme of Government of Goa.
6. Relaxation.— The Government shall be empowered to relax any one or all the conditions or clauses of this scheme in genuine cases.
7. Interpretation.— Question arises if any, regarding interpretation of any clause, word, expression, the decision of the Government shall be final.
8. Grievance Redressal Mechanism.— Grievances if any, arising out of the implementation of this scheme, shall be heard and decided by the Secretary Education and his decision shall be final and binding.
This issues with the approval of the Government vide their U.O. No. 1211-F dated 23-04-2018 and concurrence of Finance (Exp.) Department under U. No. 9847 dated 20-04-2018.
By order and in the name of the
Governor of Goa.
Vandana Rao, IAS, Director (Education).
Porvorim, 1st November, 2019.
———ttt———
Department of Finance
Office of the Commissioner of Commercial Taxes
——
Trade Circular
CCT/26-2/2018-19/2180
Read:- (1) Trade Circular No. 1 of 2017-18 dated 14th September, 2017 published in Official Gazette, Series I No. 25 dated 21st September, 2017;
(2) Trade Circular No. 2 of 2017-18 dated 31st October, 2017 published in Official Gazette, Series I No. 31 dated 2nd November, 2017;
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019(3) Trade Circular No. 3 of 2017-18 dated 29th November, 2017 published in Official Gazette, Series I No. 35 dated 30th November, 2017;
(4) Trade Circular No. 4 of 2017-18 dated 4th January, 2018 published in the Official Gazette, Series I No. 41 dated 11th January, 2018;
(5) Trade Circular No. 5 of 2017-18 dated 19th Februar y, 2018 published in Official Gazette, Series I No. 47 dated 22nd February, 2018.
(6) Trade Circular No. 1 of 2018-19/ /2170 dated 11th September, 2018 published in Official Gazette, Series I No. 25 dated 20th September, 2018.
(7) Trade Circular No. 3 of 2018-19 dated 14th March, 2019 published in Official Gazette, Series I No. 51 dated 22nd March, 2019.
TRADE CIRCULAR
(No. 1 of 2019-20)
The last date for furnishing the statutory declaration Forms in respect of tax periods upto 30-06-2017 in case of Dealers who were registered under the Central Sales Tax Act, 1956 was 30-09-2017.
Vide Trade Circulars referred above, the said date was extended from time to time till 20-11-2018. Now, the Department has received many representations from Dealers requesting to provide another opportunity to apply and obtain declaration Forms in respect of earlier tax periods till 30-06-2017.
Considering the requests made by Dealers, it is now decided to give a last and final opportunity to all Dealers for filing online application for declaration Forms and to obtain the declaration Forms.
In view of above, the procedure for availing this last and final opportunity is hereby laid down as under:—
1. The final opportunity to submit manual application requesting to open window for filing online application for declaration forms should be exercised by the Dealers on or before 31-12-2019, in the following manner.
2. The Dealer shall make an application on a plain paper addressed to the Appropriate Assessing Authority in the local ward Office giving the category-wise details of the Declaration Forms required to be issued. A statement containing invoice-wise details of each transaction, inter alia, disclosing the date of invoice, invoice number, name of the Dealer to whom the Form is being issued, selling Dealer's TIN, commodity description, invoice value, purpose, etc. shall be annexed to the said application. The statement should disclose a clear demarcation of party-wise and quarter/month-wise forms to be issued with the sub-total of the value for each form.
3. The application along with the statement thereto shall be submitted at the inward counter of the jurisdictional ward office on or before 31-12-2019 and official acknowledge- ment shall be obtained by the Dealer. Since the facility of applying for declaration forms is being offered as a last and final opportunity, it should be ensured by the Dealer that the application and the statement annexed thereto is correct and complete in all respects.
4. Upon receipt of the application, the jurisdictional Assessing Authority shall verify the same and upon being satisfied about the correctness of the application, open the window on the portal thereby enabling the applicant Dealer to apply online for the declaration forms.
5. The window may be kept open for a period not exceeding 7 days during which the applicant Dealer has to furnish online, the details for declaration forms required. The jurisdictional Assessing Authority, however, may keep the window open for a period beyond said seven days in genuine cases, depending upon the number of Forms or such other reasons as may be found to be genuine.
6. The Assessing Authority, inter-alia, shall ensure that there are no material differences OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 in the statement annexed to the physical application vis-a-vis the details furnished online. Upon being satisfied that there are no such differences and the Dealer is not otherwise ineligible for grant of declaration forms, the jurisdictional Assessing Authority shall dispose the online applications either by approving the declaration Forms or rejecting the request for valid reasons.
7. The process of downloading, printing and signing of declaration forms shall be completed by the Dealer at his end.
8. Invariably, the last date for submitting manual application by Dealer is 31-12-2019, and the jurisdictional Assessing Authority shall open the window within 5 working days from the date of receiving such application, and shall dispose the online application as early as possible and in any case on or before 31-01-2020. The process of downloading, printing and signing of declaration forms shall be completed by the Dealer at his end on or before 10-02-2020.
This issues with the approval of the
Government.
Dipak M. Bandekar, Commissioner of
Commercial Taxes.
Panaji, 21st November, 2019.
———ttt———
Department of Law & Judiciary
Legal Affairs Division
——
Notification
10/4/2019-LA-279
The Banning of Unregulated Deposit Schemes Act, 2019 (Central Act No. 21 of 2019), which has been passed by Parliament and assented to by the President on 31-07-2019 and published in the Gazette of India, Extraordinary, Part II, Section 1, dated 31-07-2019, is hereby published for the general information of the public.
Julio Barbosa Noronha, Joint Secretary
(Law).
Porvorim, 30th September, 2019.
THE BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 2019
Arrangement of Section
CHAPTER I
Preliminary
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
Banning of Unregulated Deposit Schemes
3. Banning of Unregulated Deposit Schemes.
4. Fraudulent default in Regulated Deposit
Schemes.
5. Wrongful inducement in relation to
Unregulated Deposit Schemes.
6. Certain scheme to be Unregulated Deposit
Scheme.
CHAPTER III
Authorities
7. Competent Authority.
8. Designated Court.
CHAPTER IV
Information on Deposit Takers
9. Central database.
10. Information of business by deposit taker.
11. Information to be shared.
CHAPTER V
Restitution to Depositors
12. Priority of depositors' claim.
13. Precedence of attachment.
14. Application for confirmation of attachment
and sale of property.
15. Confirmation of attachment by Designated
Court.
16. Attachment of property of mala fide transferees.
17. Payment in lieu of attachment.
18. Powers of Designated Court.
19. Appeal to High Court.
20. Power of Supreme Court to transfer cases.
CHAPTER VI
Offences and Punishments
21. Punishment for contravention of section 3.
22. Punishment for contravention of section 4.
23. Punishment for contravention of section 5.
24. Punishment for repeat offenders.
25. Offences by deposit takers other than
individuals.
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 201926. Punishment for contravention of section 10. 27. Cognizance of offences.
CHAPTER VII
Investigation, Search and Seizure
28. Offences to be cognizable and non-bailable. 29. Competent Authority to be informed of offences. 30. Investigation of offences by Central Bureau of
Investigation.
31. Power to enter, search and seize without
warrant.
32. Application of Code of Criminal Procedure, 1973 to proceedings before Designated Court.
CHAPTER VIII
Miscellaneous
33. Publication of advertisement of Unregulated
Deposit Scheme.
34. Act to have overriding effect.
35. Application of other laws not barred. 36. Protection of action taken in good faith. 37. Power of Central Government to make rules. 38. Power of State Government, etc., to make rules. 39. Laying of rules. 40. Power to amend First Schedule.
41. Act not to apply certain deposits. 42. Amendment to certain enactments. 43. Power to remove difficulties. 44. Repeal and saving.
THE FIRST SCHEDULE. THE SECOND SCHEDULE.
_______
THE BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 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. Short title, extent and commencement.— (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.
2. In this Act, unless the context otherwise
requires,—
(1) "appropriate Government" means in
respect of matters relating to,—
(i) the Union territor y 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;
18 of 2013.
(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—
10 of 1949.
(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 OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 2 of 1934.
(f) of section 45-I of the Reser ve 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 statutor y authority constituted under an Act of Parliament or a State Legislature;
42 of 1999.
(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 proper ty (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
54 of 2002.
Assets and Enforcement of Security Interest Act, 2002;
43 of 1951.
(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 par t 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 OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 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,—
18 of 2013.
(i) in respect of a company, the expression "deposit" shall have the same meaning as assigned to it under the Companies Act, 2013;
2 of 1934.
(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;
9 of 1932.
(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 Partner- ship Act, 2008;
6 of 2009.
18 of 2013.
(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;
(ii) a proprietorship concern;
(iii) a par tnership firm (whether
registered or not);
6 of 2009.
(iv) a limited liability partnership registered under the Limited Liability Partnership Act, 2008; .
(v) a company;
(vi) an association of persons;
2 of 1882.
(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;
10 of 1949.
(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 Cour t constituted by the appropriate Government under section 8;
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 20194 of 1938.
(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 ever y 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;
18 of 2013.
(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;
(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. Banning of Unregulated Deposit Schemes.— 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. Fraudulent default in Regulated Deposit Schemes.— 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. Wrongful inducement in relation to Unregulated Deposit Schemes.— 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.
43 of 1978.
6. Certain scheme to be Unregulated Deposit Scheme.— 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 OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 deemed to be an Unregulated Deposit Scheme under this Act.
CHAPTER III
Authorities
7. Competent Authority.— (1) The appropriate Government shall, by notification, appoint one or more officers not below the rank of Secretar y 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 par ticulars 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.
5 of 1908.
(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;
(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.
45 of 1860.
(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. Designated Court.— (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.
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019(2) No Court other than the Designated Court shall have jurisdiction in respect of any matter to which the provisions of this Act apply.
2 of 1974.
(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. Central database.— (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. Information of business by deposit taker.— (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.
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.
18 of 2013.
11. Information to be shared.— (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
54 of 2002.
31 of 2016.
12. Priority of depositors' claim.— 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. Precedence of attachment.— (1) Save as otherwise provided in the Securitisation and Reconstruction OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 54 of 2002.
31 of 2016.
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.
14. Application for confirmation of attachment and sale of property.— (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 territor y, the application for confirmation of such attachment shall be filed in that Court.
15. Confirmation of attachment by Designated Court.— (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 proper ty 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, af ter adopting such procedure as may be prescribed, pass an order—
(a) making the provisional order of
attachment absolute; or
(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.
(b) varying it by releasing a portion of
the property from attachment; or OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 (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. Attachment of property of mala fide transferees.— (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 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. Payment in lieu of attachment.— (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. Powers of Designated Court.— (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;
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019(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 Cour t 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 af ter 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
(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. Appeal to High Court.— 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 territor y where the Designated Court is situated.
20. Power of Supreme Court to transfer cases.— (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 ever y 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. Punishment for contravention of section 3.— (1) Any deposit taker who solicits deposits in contravention of section 3 shall be punishable with imprisonment for a OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 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 takr 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,—
45 of 1860.
(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.
22. Punishment for contravention of section 4.— Any deposit taker who contravenes the provisions of section 4 shall be punishable with imprisonment for a term which may extend to seven years, or with fine which shall not be less than five lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of the fraudulent default referred to in said section, whichever is higher, or with both.
23. Punishment for contravention of section 5.— Any person who contravenes the provisions of section 5 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 may extend to ten lakh rupees.
24. Punishment for repeat offenders.— Whoever having been previously convicted of an offence punishable under this Chapter, except the offence under section 26, is subsequently convicted of an offence shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to ten years and with fine which shall not be less than ten lakh rupees but which may extend to fifty crore rupees.
25. Offences by deposit takers other than individuals.— (1) Where an offence under this Act has been committed by a deposit taker other than an individual, every person who, at the time the offence was committed, was in charge of, and was responsible to, the deposit taker for the conduct of its business, as well as the deposit taker, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
(2) Nothing contained in sub-section (1) shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(3) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a deposit taker other than an individual, and it is proved that the offence—
(a) has been committed with the consent
or connivance of; or
(b) is attributable to any neglect on the part of any director, manager, secretary, promoter, partner, employee or other officer of the deposit taker, OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 such person shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
26. Punishment for contravention of section 10.— Whoever fails to give the intimation required under sub-section (1) of section 10 or fails to furnish any such statements, information or particulars as required under sub-section (2) of that section, shall be punishable with fine which may extend to five lakh rupees.
27. Cognizance of offences.— Notwith- standing anything contained in section 4, no Designated Court shall take cognizance of an offence punishable under that section except upon a complaint made by the Regulator:
Provided that the provisions of section 4 and this section shall not apply in relation to a deposit taker which is a company.
CHAPTER VII
Investigation, Search and Seizure
2 of 1974.
28. Offences to be cognizable and non-bailable.— Notwithstanding anything contained in the Code of Criminal Procedure, 1973 every offence punishable under this Act, except the offence under section 22 and section 26, shall be cognizable and non-bailable.
29. Competent Authority to be informed of offences.— The police officer shall, on recording information about the commission of an offence under this Act, inform the same to the Competent Authority.
30. Investigation of offences by Central Bureau of Investigation.— (1) On receipt of information under section 29 or otherwise, if the Competent Authority has reason to believe that the offence relates to a deposit scheme or deposit schemes in which—
(a) the depositors, deposit takers or properties involved are located in more than one State or Union territory in India or outside India; and
(b) the total value of the amount involved is of such magnitude as to significantly affect the public interest,
the Competent Authority shall refer the matter to the Central Government for investigation by the Central Bureau of Investigation.
25 of 1946.
(2) The reference made by the Competent Authority under sub- section (1) shall be deemed to be with the consent of the State Government under section 6 of the Delhi Special Police Establishment Act, 1946.
(3) On the receipt of the reference under sub-section (1), the Central Government may transfer the investigation of the offence to the Central Bureau of Investigation under section 5 of the Delhi Special Police Establishment Act, 1946. 25 of 1946.
31. Power to enter, search and seize without warrant.— (1) Whenever any police officer, not below the rank of an officer in-charge of a police station, has reason to believe that anything necessary for the purpose of an investigation into any offence under this Act may be found in any place within the limits of the police station of which he is in-charge, or to which he is attached, such officer may, with the written authorisation of an officer not below the rank of Superintendent of Police, and after recording in writing so far as possible, the thing for which the search is to be made and subject to the rules made in this behalf, authorise any officer subordinate to him,—
(a) to enter and search any building, conveyance or place, between sunrise and sunset, which he has reason to suspect is being used for purposes connected with the promotion or conduct of any deposit taking scheme or arrangement in contravention of the provisions of this Act;
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019(b) in case of resistance, to break open any door and remove any obstacle to such entry, if necessary by force, with such assistance as he considers necessary, for exercising the powers conferred by clause (a);
(c) to seize any record or property found as a result of the search in the said building, conveyance or place, which are intended to be used, or reasonably suspected to have been used, in connection with any such deposit taking scheme or arrangement in contravention of the provisions of this Act; and
(d) to detain and search, and if he thinks proper, take into custody and produce before any Designated Court any such person whom he has reason to believe to have committed any offence punishable under this Act:
Provided that if such officer has reason to believe that the said written authorisation cannot be obtained without affording opportunity for the concealment of evidence or facility for the escape of an offender, he may, without the said written authorisation, enter and search such building, conveyance or place, at any time between sunset and sunrise af ter recording the grounds in writing.
(2) Where it is not practicable to seize the record or property, the officer authorised under sub-section (1), may make an order in writing to freeze such property, account, deposits or valuable securities maintained by any deposit taker about which a complaint has been made or credible information has been received or a reasonable suspicion exists of their having been connected with the promotion or conduct of any deposit taking scheme or arrangement in contravention of the provisions of this Act and it shall be binding on the concerned bank or financial or market establishment to comply with the said order:
Provided that no bank or financial or market establishment shall freeze such account, deposit or valuable securities, for a period beyond thirty days unless the same is authorised by the order of the Designated Court:
Provided further that, if at any time, it becomes practicable to seize the frozen property, the officer authorised under sub- section (1) may seize such property.
Explanation.—For the purposes of this
section, the expressions,—
(i) "freezing of account" shall mean that no transaction, whether deposit or withdrawal shall be allowed in the said account; and
(ii) "freezing of property" shall mean that no transfer, conversion, disposition or movement of property shall be allowed.
(3) Where an officer takes down any information in writing or records grounds for his belief or makes an order in writing under sub-section (1) or sub-section (2), he shall, within a time of seventy-two hours send a copy thereof to the Designated Court in a sealed envelope and the owner or occupier of the building, conveyance or place shall, on application, be furnished, free of cost, with a copy of the same by the Designated Court.
(4) All searches, seizures and arrests under this section shall be made in accordance with the provisions of the Code of Criminal Procedure, 1973.
2 of 1974.
32. Application of Code of Criminal Procedure, 1973 to proceedings before Designated Court.— (1) The Designated Court may take cognizance of offences under this Act without the accused being committed to it for trial.
2 of 1974.
(2) Save as otherwise provided in section 31, the provisions of the Code of Criminal Procedure, 1973 shall apply—
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019(a) to all arrests, searches and seizures
made under this Act;
(b) to the proceedings under this Act and for the purposes of the said provisions, the Designated Court shall be deemed to be a Court of Session and the persons conducting the prosecution before the Designated Court, shall be deemed to be Public Prosecutors.
CHAPTER VIII
Miscellaneous
33. Publication of advertisement of Unregulated Deposit Scheme.— Where any newspaper or other publication of any nature, contains any statement, information or advertisement promoting, soliciting deposits for, or inducing any person to become a member of any Unregulated Deposit Scheme, the appropriate Government may direct such newspaper or publication to publish a full and fair retraction, free of cost, in the same manner and in the same position in such newspaper or publication as may be prescribed.
34. Act to have overriding effect.— Save as otherwise expressly provided in this Act, the provisions of this Act shall have effect notwithstanding anything contained in any other law for the time being in force, including any law made by any State or Union territory.
35. Application of other laws not barred.— The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.
36. Protection of action taken in good faith.— No suit, prosecution or other legal proceedings shall lie against the appropriate Government or the Competent Authority or any officer of the appropriate Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.
37. Power of Central Government to make rules.— (1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
(a) the information and other particulars to be taken into consideration before issuing an order, and the manner of attachment, under sub-section (3) of section 7;
(b) the information to be shared under
sub-section (2) of section 9;
(c) the form and manner in which and the time within which the intimation shall be given under sub-section (1) of section 10;
(d) the par ticulars contained in the application to be filed by the Competent Authority before the Designated Court under sub-section (1) of section 14;
(e) the procedure to be adopted by the Designated Court before issuing an order under sub-section (3) of section 15;
(f) rules under sub-section (1) of
section 31;
(g) the manner of publication of
advertisement under section 33; and
(h) any other matter which is required
to be, or may be, prescribed.
38. Power of State Government, etc., to make rules.— (1) The State Government or Union territory Government, as the case may be, in consultation with the Central Government, by notification, make rules for carrying out the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 rules may provide for all or any of the following matters, namely:—
(a) ceiling for self-help groups under
clause (j) of sub-section (4) of section 2;
(b) purpose and ceiling under clause (k)
of sub-section (4) of section 2;
(c) the manner of provisional attachment of property by the Competent Authority under sub-section (3) of section 7;
(d) other matters under clause (f) of sub-
section (4) of section 7;
(e) the rules relating to impounding and custody of records under sub-section (8) of section 7; and
(f) any other matter which is required
to be, or may be, prescribed.
39. Laying of rules.— (1) Every rule 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 rule, or both Houses agree that the rule should not be made, the rule 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.
(2) Ever y rule made by a State Government or the Union territor y Government, as the case may be, shall be laid, as soon as may be after it is made, before each House of the State Legislature or the Union territory Legislature, as the case may be, where it consists of two Houses, or where such Legislature consists of one House, before that House.
40. Power to amend First Schedule.— (1) The Central Government may, having regard to the objects of this Act, and if it considers necessar y or expedient so to do, by notification, add to, or as the case may be, omit from the First Schedule, any scheme or arrangement, and on such addition, or omission, such scheme or arrangement shall become, or cease to be, a Regulated Deposit Scheme, as the case may be.
(2) A copy of every notification issued under this section shall, as soon as may be after it has been issued, be laid before each House of Parliament.
41. Act not to apply certain deposits.— The provisions of this Act shall not apply to deposits taken in the ordinary course of business.
42. Amendment to certain enactments.— The enactments specified in the Second Schedule shall be amended in the manner specified therein.
43. Power to remove difficulties.— (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 three years from the 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.
Ord. 7 of 2019.
44. Repeal and saving.— (1) The Banning of Unregulated Deposit Schemes 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.
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019THE FIRST SCHEDULE
[See section 2 (15)]
Regulated Deposit Schemes
(1) The Regulator and Regulated Deposit Scheme refers to the regulators and schemes and arrangements listed in the following Table, namely:—
TABLE
Sl. No. Regulator Regulated Deposit Scheme
(1)
(2)
(3)
1. The Securities and (i) Any scheme or an arrangement [as defined under section 11 AA Exchange Board of the Securities and Exchange Board of India Act, 1992 (15 of of India 1992)] launched, sponsored or carried out by a Collective Investment Management Company registered with the Securities and Exchange Board of India under the Securities and Exchange Board of India (Collective Investment Scheme) Regulations, 1999.
(ii) Any scheme or an arrangement registered with the Securities and Exchange Board of India under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.
(iii) Any scheme or an arrangement, pursuant to which funds are managed by a portfolio manager, registered under the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993.
(iv) Any scheme or an arrangement regulated under the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 or providing for employee benefits as permitted under the Companies Act, 2013 (18 of 2013).
(v) Any other scheme or an arrangement registered under the Securities and Exchange Board of India Act, 1992 (15 of 1992), or the regulations made thereunder.
(vi) Any amount received as contributions in the nature of subscriptions to a mutual fund registered with Securities and Exchange Board of India under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.
2. The Reserve Bank of (i) Any scheme under which deposits are accepted by Non-Banking India Financial Companies as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934) and registered with the Reserve Bank of India; or any other scheme or an arrangement registered under the Reserve Bank of India Act, 1934.
(ii) Any scheme or an arrangement under which funds are accepted by individuals or entities engaged as Business Correspondents and Facilitators by banks subject to the guidelines and circulars issued by the Reserve Bank of India from time to time.
(iii) Any scheme or an arrangement under which funds are received by a system provider operating as an authorised payment system under the Payment and Settlement Systems Act, 2007 (51 of 2007).
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019(1)
(2)
(3)
(iv) Any other scheme or an arrangement regulated under the Reserve Bank of India Act, 1934 (2 of 1934), or the guidelines or circulars of the Reserve Bank of India.
3. The Insurance A contract of insurance pursuant to a certificate of registration Regulatory and obtained in accordance with the Insurance Act, 1938 (4 of 1938). Development Authority of India
4. The State Government (i) Any scheme or an arrangement made or offered by a co-operative or Union territory society registered under the Co-operative Societies Act, 1912 (2 Government of 1912) or a society being a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State or Union territory.
(ii) Any scheme or an arrangement commenced or conducted as a chit business with the previous sanction of the State Government in accordance with the provisions of the Chit Funds Act, 1982 (40 of 1982).
(iii) Any scheme or an arrangement regulated by any enactment relating to money lending which is for the time being in force in any State or Union territory.
(iv) Any scheme or an arrangement by a prize chit or money circulation scheme under section 11 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (43 of 1978).
5. The National Any scheme or an arrangement for acceptance of deposits registered Housing Bank under the National Housing Bank Act, 1987 (53 of 1987).
6. The Pension Fund Any scheme or an arrangement under the Pension Fund Regulatory Regulatory and and Development Authority Act, 2013 (23 of 2013). Development Authority
7. The Employees' Any scheme, Pension Scheme or Insurance Scheme framed under Provident Fund the Employees' Provident Fund and Miscellaneous Provisions Act, Organisation 1952 (19 of 1952).
8. The Central Registrar, Any scheme or an arrangement for acceptance of deposits from Multi-State Co- voting members by a Multi-State Co-operative Society registered operative Societies under the Multi-State Co-operative Societies Act, 2002 (39 of 2002).
9. The Ministry of (i) Deposits accepted or permitted under the provisions of Chapter Corporate Affairs, V of the Companies Act, 2013 (18 of 2013). Government of India
(ii) Any scheme or an arrangement under which deposits are accepted by a company declared as a Nidhi or a Mutual Benefit Society under section 406 of the Companies Act, 2013 (18 of 2013).
(2) The following shall also be treated as Regulated Deposit Schemes under this Act, namely:—
(a) deposits accepted under any scheme or an arrangement registered with any regulatory body in India constituted or established under a statute; and
(b) any other scheme as may be notified by the Central Government under this Act.
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019THE SECOND SCHEDULE (See section 42)
Amendments to Certain Enactments
Part I
Amendment to The Reserve Bank of India
Act, 1934
Amendment of section 45-I of Act 2 of 1934.— In the Reserve Bank of India Act, 1934, in section 45-I, in clause (bb), after Explanation II, the following Explanation shall be inserted, namely:—
"Explanation III.— The amounts accepted by a co-operative society from the members or shareholders, by whatever name called, but excluding the amounts received as share capital, shall be deemed to be deposits for the purposes of this clause, if such members or shareholders are nominal or associate members, by whatever name called, who do not have full voting rights in the meetings of such co-operative society.".
PART II
Amendments to the Securities and Exchange
Board of India Act, 1992
Amendment of section 11 of Act 15 of 1992.— In the Securities and Exchange Board of India Act, 1992,—
(i) in section 11, in sub-section (4), for clause (e), the following clause shall be substituted, namely:—
"(e) attach, for a period not exceeding ninety days, bank accounts or other property of any intermediary or any person associated with the securities market in any manner involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder:
Provided that the Board shall, within ninety days of the said attachment, obtain confirmation of the said attachment from the Special Court, established under section 26A, having jurisdiction and on such confirmation, such attachment shall continue during the pendency of the aforesaid proceedings and on conclusion of the said proceedings, the provisions of section 28A shall apply:
Provided further that only property, bank account or accounts or any transaction entered therein, so far as it relates to the proceeds actually involved in violation of any of the provisions of this Act, or the rules or the regulations made there under shall be allowed to be attached.";
(ii) in section 28A, after Explanation 3, the following Explanation shall be inserted, namely:-
43 of 1961.
"Explanation 4.— The interest referred to in section 220 of the Income-tax Act, 1961 shall commence from the date the amount became payable by the person.".
Part III
Amendment to the Multi-State Co-operative
Societies Act, 2002
Amendment of section 67 of Act 39 of 2002.—In the Multi-State Co-operative Societies Act, 2002, in section 67, in sub-section (1),—
(a) after the words "receive deposits", the words "from its voting members" shall be inserted;
(b) the following Explanation shall be
inserted, namely:—
"Explanation.— For the removal of doubts, it is hereby clarified that a multi-State co-operative society shall not be entitled to receive deposits from persons other than voting members.".
________
Notification
No. 10/4/2019-LA-280
The Companies (Amendment) Act, 2019 (Central Act No. 22 of 2019), which has been passed by Parliament and assented to by the President on 31-07-2019 and published in the Gazette of India, Extraordinary, Part II, Section 1, dated 31-07-2019, is hereby published for the general information of the public.
Julio Barbosa Noronha, Joint Secretary
(Law).
Porvorim, 30th September, 2019.
________
THE COMPANIES (AMENDMENT) ACT, 2019
AN
ACT
further to amend the Companies Act, 2013.
Be it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 20191. Short title and commencement.— (1) This Act may be called the Companies (Amendment) Act, 2019.
(2) The provisions of this Act, except sections 6, 7 and 8, clauses (i), (iii) and clause (iv) of section 14, sections 20 and 21, section 31, sections 33, 34 and 35, sections 37 and 38 shall be deemed to have come into force on the 2nd day of November, 2018.
(3) The provisions of sections 6, 7 and 8, clauses (i), (iii) and clause (iv) of section 14, sections 20 and 21, section 31, sections 33, 34 and 35, sections 37 and 38 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 these provisions and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
18 of 2013.
2. Amendment of section 2.— In section 2 of the Companies Act, 2013 (hereinafter referred to as the principal Act), in clause (41),—
(a) for the first proviso, the following
provisos shall be substituted, namely:—
"Provided that where a company or body corporate, which is a holding company or a subsidiary or associate company of a company incorporated outside India and is required to follow a different financial year for consolidation of its accounts outside India, the Central Government may, on an application made by that company or body corporate in such form and manner as may be prescribed, allow any period as its financial year, whether or not that period is a year:
Provided further that any application pending before the Tribunal as on the date of commencement of the Companies (Amendment) Act, 2019, shall be disposed of by the Tribunal in accordance with the provisions applicable to it before such commencement.";
(b) in the second proviso, for the words "Provided fur ther that", the words "Provided also that" shall be substituted.
3. Insertion of new section 10A.— After section 10 of the principal Act, the following section shall be inserted, namely:—
"10A. Commencement of business, etc.— (1) A company incorporated after the commencement of the Companies (Amendment) Act, 2019 and having a share capital shall not commence any business or exercise any borrowing powers unless—
(a) a declaration is filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in such form and verified in such manner as may be prescribed, with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration; and
(b) the company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12.
(2) If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.
(3) Where no declaration has been filed with the Registrar under clause (a) of sub- -section (1) within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.".
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 20194. Amendment of section 12.— In section 12 of the principal Act, after sub-section (8), the following sub-section shall be inserted, namely:—
"(9) If the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company in such manner as may be prescribed and if any default is found to be made in complying with the requirements of sub-section (1), he may without prejudice to the provisions of sub-section (8), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.".
5. Amendment of section 14.— In section
14 of the principal Act,—
(i) in sub-section (1), for the second proviso, the following provisos shall be substituted, namely:—
"Provided further that any alteration having the effect of conversion of a public company into a private company shall not be valid unless it is approved by an order of the Central Government on an application made in such form and manner as may be prescribed:
Provided also that any application pending before the Tribunal, as on the date of commencement of the Companies (Amendment) Act, 2019, shall be disposed of by the Tribunal in accordance with the provisions applicable to it before such commencement.";
(ii) in sub-section (2), for the word "Tribunal", the words "Central Government" shall be substituted.
6. Amendment of section 26.— In section
26 of the principal Act,—
(i) in sub-sections (4), (5) and (6), for the word "registration", the word "filing"shall be substituted;
(ii) sub-section (7) shall be omitted.
7. Amendment of section 29.— In section
29 of the principal Act,—
(i) in sub-section (1), in clause (b), the
word "public" shall be omitted;
(ii) after sub-section (1), the following
sub-section shall be inserted, namely:—
22 of 1996.
"(1A) In case of such class or classes of unlisted companies as may be prescribed, the securities shall be held or transferred only in dematerialised form in the manner laid down in the Depositories Act, 1996 and the regulations made thereunder.".
8. Amendment of section 35.— In section 35 of the principal Act, in sub-section (2), in clause (c), for the words "delivery of a copy of the prospectus for registration", the words "filing of a copy of the prospectus with the Registrar" shall be substituted.
9. Amendment of section 53.— In section 53 of the principal Act, for sub-section (3), the following sub-section shall be substituted, namely:—
"(3) Where any company fails to comply with the provisions of this section, such company and every officer who is in default shall be liable to a penalty which may extend to an amount equal to the amount raised through the issue of shares at a discount or five lakh rupees, whichever is less, and the company shall also be liable to refund all monies received with interest at the rate of twelve per cent. per annum from the date of issue of such shares to the persons to whom such shares have been issued.".
10. Amendment of section 64.— In section 64 of the principal Act, for sub-section (2), the following sub-section shall be substituted, namely:—
"(2) Where any company fails to comply with the provisions of sub-section (1), such company and every officer who is in default shall be liable to a penalty of one OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 thousand rupees for each day during which such default continues, or five lakh rupees whichever is less.".
11. Amendment of section 77.— In section 77 of the principal Act, in sub-section (1), for the first and second provisos, the following provisos shall be substituted, namely:—
"Provided that the Registrar may, on an application by the company, allow such registration to be made—
(a) in case of charges created before the commencement of the Companies (Amendment) Act, 2019, within a period of three hundred days of such creation; or
(b) in case of charges created on or af ter the commencement of the Companies (Amendment) Act, 2019, within a period of sixty days of such creation,
on payment of such additional fees as may be prescribed:
Provided further that if the registration is not made within the period specified—
(a) in clause (a) to the first proviso, the registration of the charge shall be made within six months from the date of commencement of the Companies (Amendment) Act, 2019, on payment of such additional fees as may be prescribed and different fees may be prescribed for different classes of companies;
(b) in clause (b) to the first proviso, the Registrar may, on an application, allow such registration to be made within a further period of sixty days after payment of such ad valorem fees as may be prescribed.".
12. Amendment of section 86.— Section 86 of the principal Act shall be numbered as sub-section (1) thereof and after sub-section (1) as so numbered, the following sub-section shall be inserted, namely:—
"(2) If any person wilfully furnishes any false or incorrect information or knowingly suppresses any material information, required to be registered in accordance with the provisions of section 77, he shall be liable for action under section 447.".
13. Substitution of new section for section 87.— For section 87 of the principal Act, the following section shall be substituted, namely:—
"87. Rectification by Central Government in Register of charges.— The Central Government on being satisfied that—
(a) the omission to give intimation to the Registrar of the payment or satisfaction of a charge, within the time required under this Chapter; or
(b) the omission or misstatement of any particulars, in any filing previously made to the Registrar with respect to any charge or modification thereof or with respect to any memorandum of satisfaction or other entry made in pursuance of section 82 or section 83,
was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of creditors or shareholders of the company, it may, on the application of the company or any person interested and on such terms and conditions as it deems just and expedient, direct that the time for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or misstatement shall be rectified.".
14. Amendment of section 90.— In section
90 of the principal Act,—
(i) after sub-section (4), the following
sub-section shall be inserted, namely:—
"(4A) Ever y company shall take necessary steps to identify an individual who is a significant beneficial owner in relation to the company and require him to comply with the provisions of this section.";
(ii) for sub-section (9), the following sub-
section shall be substituted, namely:—
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019"(9) The company or the person aggrieved by the order of the Tribunal may make an application to the Tribunal for relaxation or lifting of the restrictions placed under sub-section (8), within a period of one year from the date of such order:
Provided that if no such application has been filed within a period of one year from the date of the order under sub-section (8), such shares shall be transferred, without any restrictions, to the authority constituted under sub- section (5) of section 125, in such manner as may be prescribed.";
(iii) af ter sub-section (9), as so substituted, the following sub-section shall be inserted, namely:—
"(9A) The Central Government may make rules for the purposes of this section.";
(iv) in sub-section (11), after the word, brackets and figure "sub-section (4)", the words, brackets, figure and letter "or required to take necessary steps under sub-section (4A)" shall be inserted.
15. Amendment of section 92.— In section 92 of the principal Act, for sub-section (5), the following sub-section shall be substituted, namely:—
"(5) If any company fails to file its annual return under sub-section (4), before the expiry of the period specified therein, such company and its every officer who is in default shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees.".
16. Amendment of section 102.— In section 102 of the principal Act, for sub-section (5), the following sub-section shall be substituted, namely:—
"(5) Without prejudice to the provisions of sub-section (4), if any default is made in complying with the provisions of this section, every promoter, director, manager or other key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees or five times the amount of benefit accruing to the promoter, director, manager or other key managerial personnel or any of his relatives, whichever is higher.".
17. Amendment of section 105.— In section 105 of the principal Act, in sub-section (3), for the words "punishable with fine which may extend to five thousand rupees", the words "liable to a penalty of five thousand rupees" shall be substituted.
18. Amendment of section 117.— In section 117 of the principal Act, for sub-section (2), the following sub-section shall be substituted, namely:—
"(2) If any company fails to file the resolution or the agreement under sub- section (1) before the expiry of the period specified therein, such company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of twenty- five lakh rupees and every officer of the company who is in default including liquidator of the company, if any, shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees.".
19. Amendment of section 121.— In section 121 of the principal Act, for sub-section (3), the following sub-section shall be substituted, namely:—
"(3) If the company fails to file the report under sub-section (2) before the expiry of the period specified therein, such company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 which such failure continues, subject to a maximum of five lakh rupees and every officer of the company who is in default shall be liable to a penalty which shall not be less than twenty-five thousand rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of one lakh rupees.".
20. Amendment of section 132.— In section
132 of the principal Act,—
(a) after sub-section (1), the following
sub-section shall be inserted, namely:—
"(1A) The National Financial Reporting Authority shall perform its functions through such divisions as may be prescribed.";
(b) after sub-section (3), the following sub-sections shall be inserted, namely:—
"(3A) Each division of the National Financial Reporting Authority shall be presided over by the Chairperson or a full-time Member authorised by the Chairperson.
(3B) There shall be an executive body of the National Financial Repor ting Authority consisting of the Chairperson and full-time Members of such Authority for efficient discharge of its functions under sub-section (2) [other than clause (a)] and sub-section (4).";
(c) in sub-section (4), in clause (c), for sub-clause (B), the following sub-clause shall be substituted, namely:—
"(B) debarring the member or the firm
from—
I. being appointed as an auditor or internal auditor or undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate; or
II. performing any valuation as
provided under section 247,
for a minimum period of six months or such higher period not exceeding ten years as may be determined by the National Financial Reporting Authority.".
21. Amendment of section 135.— In section
135 of the principal Act,—
(a) in sub-section (5), —
(i) after the words "three immediately preceding financial years,", the words "or where the company has not completed the period of three financial years since its incorporation, during such immediately preceding financial years," shall be inserted;
(ii) in the second proviso, after the words "reasons for not spending the amount" occurring at the end, the words, brackets, figure and letters "and, unless the unspent amount relates to any ongoing project referred to in sub- section (6), transfer such unspent amount to a Fund specified in Schedule VII, within a period of six months of the expiry of the financial year" shall be inserted;
(b) after sub-section (5), the following sub-sections shall be inserted, namely:—
"(6) Any amount remaining unspent under sub-section (5), pursuant to any ongoing project, fulfilling such conditions as may be prescribed, undertaken by a company in persuance of its Corporate Social Responsibility Policy, shall be transferred by the company within a period of thirty days from the end of the financial year to a special account to be opened by the company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account, and such amount shall be spent by the company in pursuance of its obligation towards the Corporate Social Responsibility Policy within a period of three financial years from the date of such transfer, failing which, the company shall transfer the OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 same to a Fund specified in Schedule VII, within a period of thirty days from the date of completion of the third financial year.
(7) If a company contravenes the provisions of sub-section (5) or sub- section (6), the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees and every officer of such company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.
(8) The Central Government may give such general or special directions to a company or class of companies as it considers necessar y to ensure compliance of provisions of this section and such company or class of companies shall comply with such directions.".
22. Amendment of section 137.— In section 137 of the principal Act, in sub-section (3),—
(a) for the words "punishable with fine", the words "liable to a penalty" shall be substituted;
(b) for the portion beginning with the words "punishable with imprisonment", and ending with the words "five lakh rupees or with both", the words "shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees" shall be substituted.
23. Amendment of section 140.— In section 140 of the principal Act, for sub-section (3), the following sub-section shall be substituted, namely:—
"(3) If the auditor does not comply with the provisions of sub-section (2), he or it shall be liable to a penalty of fifty thousand rupees or an amount equal to the remuneration of the auditor, whichever is less, and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees.".
24. Amendment of section 157.— In section 157 of the principal Act, for sub-section (2), the following sub-section shall be substituted, namely:—
"(2) If any company fails to furnish the Director Identification Number under sub- section (1), such company shall be liable to a penalty of twenty-five thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of one lakh rupees, and every officer of the company who is in default shall be liable to a penalty of not less than twenty-five thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of one lakh rupees.".
25. Substitution of new section for section 159.— For section 159 of the principal Act, the following section shall be substituted, namely:—
"159. Penalty for default of certain provisions.— If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.".
26. Amendment of section 164.— In section 164 of the principal Act, in sub-section (1), OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019 after clause (h), the following clause shall be inserted, namely:—
"(i) he has not complied with the provisions of sub-section (1) of section 165.".
27. Amendment of section 165.— In section 165 of the principal Act, in sub-section (6), for the portion beginning with the words "punishable with fine" and ending with the words "contravention continues", the words "liable to a penalty of five thousand rupees for each day after the first during which such contravention continues" shall be substituted.
28. Amendment of section 191.— In section 191 of the principal Act, for sub-section (5), the following sub-section shall be substituted, namely:—
"(5) If a director of the company makes any default in complying with the provisions of this section, such director shall be liable to a penalty of one lakh rupees.".
29. Amendment of section 197.— In section
197 of the principal Act,—
(a) sub-section (7) shall be omitted;
(b) for sub-section (15), the following sub-section shall be substituted, namely:—
"(15) If any person makes any default in complying with the provisions of this section, he shall be liable to a penalty of one lakh rupees and where any default has been made by a company, the company shall be liable to a penalty of five lakh rupees.".
30. Amendment of section 203.— In section 203 of the principal Act, for sub-section (5), the following sub-section shall be substituted, namely:—
"(5) If any company makes any default in complying with the provisions of this section, such company shall be liable to a penalty of five lakh rupees and every director and key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees and where the default is a continuing one, with a further penalty of one thousand rupees for each day after the first during which such default continues but not exceeding five lakh rupees.".
31. Amendment of section 212.— In section
212 of the principal Act,—
(a) in sub-section (8), for the words "If the Director, Additional Director or Assistant Director", the words "If any officer not below the rank of Assistant Director" shall be substituted;
(b) in sub-section (9), for the portion beginning with the words "The Director" and ending with the word, brackets and figure "sub-section (8)", the words, brackets and figure "The officer authorised under sub-section (8) shall, immediately after arrest of such person under such sub- section" shall be substituted;
(c) in sub-section (10),—
(i) for the words "Judicial Magistrate", the words "Special Court or Judicial Magistrate" shall be substituted;
(ii) in the proviso, for the words "Magistrate's court", the words "Special Court or Magistrate's court" shall be substituted;
(d) after sub-section (14), the following
sub-section shall be inserted, namely:—
"(14A) Where the report under sub- section (11) or sub-section (12) states that fraud has taken place in a company and due to such fraud any director, key managerial personnel, other officer of the company or any other person or entity, has taken undue advantage or benefit, whether in the form of any asset, property or cash or in any other manner, the Central Government may file an application before the Tribunal for appropriate orders with regard to disgorgement of such asset, property or cash and also for holding such director, key managerial personnel, other officer or any other person liable personally without any limitation of liability.".
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 201932. Amendment of section 238.— In section 238 of the principal Act, in sub-section (3), for the words "punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees", the words "liable to a penalty of one lakh rupees" shall be substituted.
33. Amendment of section 241.— In section
241 of the principal Act,—
(a) in sub-section (2), the following
proviso shall be inserted, namely:—
"Provided that the applications under this sub-section, in respect of such company or class of companies, as may be prescribed, shall be made before the Principal Bench of the Tribunal which shall be dealt with by such Bench.";
(b) after sub-section (2), the following sub-sections shall be inserted, namely:—
"(3) Where in the opinion of the Central Government there exist circumstances suggesting that––
(a) any person concerned in the conduct and management of the affairs of a company is or has been in connection therewith guilty of fraud, misfeasance, persistent negligence or default in carrying out his obligations and functions under the law or of breach of trust;
(b) the business of a company is not or has not been conducted and managed by such person in accordance with sound business principles or prudent commercial practices;
(c) a company is or has been conducted and managed by such person in a manner which is likely to cause, or has caused, serious injury or damage to the interest of the trade, industry or business to which such company pertains; or
(d) the business of a company is or has been conducted and managed by such person with intent to defraud its creditors, members or any other person or otherwise for a fraudulent or unlawful purpose or in a manner prejudicial to public interest,
the Central Government may initiate a case against such person and refer the same to the Tribunal with a request that the Tribunal may inquire into the case and record a decision as to whether or not such person is a fit and proper person to hold the office of director or any other office connected with the conduct and management of any company.
(4) The person against whom a case is referred to the Tribunal under sub- section (3), shall be joined as a respondent to the application.
(5) Ever y application under sub-
section (3)—
(a) shall contain a concise statement of such circumstances and materials as the Central Government may consider necessar y for the purposes of the inquiry; and
5 of 1908.
(b) shall be signed and verified in the manner laid down in the Code of Civil Procedure, 1908, for the signature and verification of a plaint in a suit by the Central Government.".
34. Amendment of section 242.— In section 242 of the principal Act, after sub-section (4), the following sub-section shall be inserted, namely:—
"(4A) At the conclusion of the hearing of the case in respect of sub-section (3) of section 241, the Tribunal shall record its decision stating therein specifically as to whether or not the respondent is a fit and proper person to hold the office of director or any other office connected with the conduct and management of any company.".
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 201935. Amendment of section 243.— In section
243 of the principal Act,––
(a) after sub-section (1), the following sub-sections shall be inserted, namely:—
"(1A) The person who is not a fit and proper person pursuant to sub-section (4A) of section 242 shall not hold the office of a director or any other office connected with the conduct and management of the affairs of any company for a period of five years from the date of the said decision:
Provided that the Central Government may, with the leave of the Tribunal, permit such person to hold any such office before the expiry of the said period of five years.
(1B) Notwithstanding anything contained in any other provision of this Act, or any other law for the time being in force, or any contract, memorandum or ar ticles, on the removal of a person from the office of a director or any other office connected with the conduct and management of the affairs of the company, that person shall not be entitled to, or be paid, any compensation for the loss or termination of office.";
(b) in sub-section (2), after the word, brackets and figure "sub-section (1)", the words, brackets, figure and letter "or sub- section (1A)" shall be inserted.
36. Amendment of section 248.— In section 248 of the principal Act, in sub-section (1),—
(a) in clause (c), for the word and figures "section 455,", the words and figures "section 455; or" shall be substituted;
(b) after clause (c) and before the long line, the following clauses shall be inserted, namely:—
"(d) the subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company and a declaration to this effect has not been filed within one hundred and eighty days of its incorporation under sub-section (1) of section 10A; or
(e) the company is not carrying on any business or operations, as revealed after the physical verification carried out under sub-section (9) of section 12.".
37. Amendment of section 272.— In section 272 of the principal Act, in sub-section (3), for the words, brackets and letter "or clause (e) of that sub-section", the words "of that section" shall be substituted.
38. Amendment of section 398.— In section 398 of the principal Act, in sub-section (1), in clause (f), the word "prospectus," shall be omitted.
39. Amendment of section 441.— In section
441 of the principal Act,—
(a) in sub-section (1), in clause (b), for the words "does not exceed five lakh rupees", the words "does not exceed twenty-five lakh rupees" shall be substituted;
(b) for sub-section (6), the following sub-
section shall be substituted, namely:—
2 of 1974.
"(6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any offence which is punishable under this Act with imprisonment only or with imprisonment and also with fine shall not be compoundable.".
40. Amendment of section 446B.— In section 446B of the principal Act, for the por tion beginning with the words "punishable with fine" and ending with the words "specified in such sections", the words "liable to a penalty which shall not be more than one-half of the penalty specified in such sections" shall be substituted.
41. Amendment of section 447.— In section 447 of the principal Act, in the second proviso, for the words "twenty lakh rupees", the words "fif ty lakh rupees" shall be substituted.
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 201942. Amendment of section 454.— In section
454 of the principal Act,—
(i) for sub-section (3), the following sub-
section shall be substituted, namely:—
"(3) The adjudicating officer may, by
an order—
(a) impose the penalty on the company, the officer who is in default, or any other person, as the case may be, stating therein any non-compliance or default under the relevant provisions of this Act; and
(b) direct such company, or officer who is in default, or any other person, as the case may be, to rectify the default, wherever he considers fit.";
(ii) in sub-section (4), for the words "such company and the officer who is in default", the words "such company, the officer who is in default or any other person" shall be substituted;
(iii) in sub-section (8),—
(a) in clause (i), for the words "does not pay the penalty imposed by the adjudicating officer or the Regional Director", the words, brackets and figures "fails to comply with the order made under sub-section (3) or sub- section (7), as the case may be," shall be substituted;
(b) in clause (ii)—
(i) for the words "Where an officer of a company", the words "Where an officer of a company or any other person" shall be substituted;
(ii) for the words "does not pay the penalty", the words, brackets and figures "fails to comply with the order made under sub-section (3) or sub- section (7), as the case may be," shall be substituted.
43. Insertion of new section 454A.— After section 454 of the principal Act, the following section shall be inserted, namely:—
"454A. Penalty for repeated default.— Where a company or an officer of a company or any other person having already been subjected to penalty for default under any provisions of this Act, again commits such default within a period of three years from the date of order imposing such penalty passed by the adjudicating officer or the Regional Director, as the case may be, it or he shall be liable for the second or subsequent defaults for an amount equal to twice the amount of penalty provided for such default under the relevant provisions of this Act.".
Ord. 6 of 2019.
44. Repeal and savings.— (1) The Companies (Amendment) Second 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.
———ttt———
Department of Public Health ——
Notification
38/164/2013-I/PHD/(Part-VII)/2602
"Deen Dayal Swasthya Seva Yojana" Scheme published in the Official Gazette, Series I of No. 38 dated 22-12-2016.
Read: (1) Notification No. 38/164/2013-I/
/PHD (Part-III) dated 12-12-2016.
(2) Notification No. 38/164/2013-I/PHD
(Part-VII)/1786 dated 18-09-2017.
Government is pleased to further amend the scheme "Deen Dayal Swasthya Seva Yojana" published in the Official Gazette, Series I of No. 38 dated 22-12-2016 (hereinafter called "the said scheme"), namely,—
In the said scheme read at preamble (1), the sub-clause (i) of clause 6 substituted vide Notification read at preamble (2)" stands omitted and the following sub-clause (i) of clause 6 shall be substituted to read as under:-
"Government employees and their dependants shall not be entitled under the Scheme".
OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 35 28TH NOVEMBER, 2019This Notification shall come into force with
immediate effect.
By order and in the name of the
Governor of Goa.
Swati A. Dalvi, Under Secretary (Health).
Porvorim, 19th November, 2019.
———ttt———
Department of Revenue
——
Order
35/4/2016-RD/2587
In exercise of the powers conferred by clause (a) of sub-section (1) of section 9 of the Indian Stamp Act, 1899 (Central Act 2 of 1899), as in force in the State of Goa, read with section 21 of the General Clauses Act, 1897 (10 of 1897), the Government of Goa hereby amends the Government Order No. 35/4/2016-RD dated 30-03-2017, published in the Official Gazette (Extraordinary), Series I No. 52 dated 30-3-2017 (hereinafter referred to as the "principal Order"), as follows, namely:—
In the principal order, in clause (i) in sub- clause (d), following shall be inser ted, namely:—
"Provided that in case of subsequent conveyance of land, between the same parties, within a span of one year from the date of execution of earlier conveyance, and such land is adjacent to the land which is a subject matter of earlier conveyance, then the stamp duty chargeable on subsequent conveyance shall be calculated taking into consideration the land which is a subject matter of earlier conveyance".
This order shall come into force with
immediate effect.
By order and in the name of the
Governor of Goa.
Sudin A. Natu, Under Secretary (Revenue-I).
Porvorim, 14th November, 2019.
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