LI Network
Published on: January 31, 2024 at 11:08 IST
In a significant move, the Delhi Government, under the leadership of Chief Minister Arvind Kejriwal, has greenlit the establishment of two designated Courts, each to be presided over by an additional sessions judge, across every judicial district in Delhi. These Courts are tasked specifically with handling cases related to unregulated deposit schemes.
This decision, rooted in Section 8 of the Banning of Unregulated Deposit Schemes Act, 2019, ratified by the Indian Parliament, has garnered the stamp of approval from the Chief Justice of the Delhi High Court.
The official announcement, disseminated via a press release, indicates that the proposal has been forwarded by the Delhi Chief Minister to the Lieutenant Governor (LG) for the issuance of a corresponding notification.
The Banning of Unregulated Deposit Schemes Act, 2019, is a legislative measure aimed at implementing a comprehensive framework to outlaw unregulated deposit schemes, excluding those undertaken in the regular course of business. Its primary objective is to safeguard the interests of depositors, particularly those susceptible to fraudulent schemes.
As defined in the Act, a “deposit” encompasses any monetary amount received in advance, loan, or any other form, with a promise of return, whether in cash, kind, or services, with or without accompanying benefits such as interest or bonuses.
However, certain exceptions are outlined within the Act, such as loans from scheduled banks or cooperative banks, financial assistance from public financial institutions, loans from relatives, or credit transactions between buyers and sellers.
Effective from the Act’s commencement date, it prohibits any entity from promoting, operating, or advertising unregulated deposit schemes. Additionally, jurisdiction over matters falling under the Act exclusively lies with the designated courts.
These Courts are empowered to adjudicate not only offenses specified within the Act but also other offenses under the purview of the Code of Criminal Procedure, 1973, if charged simultaneously.