The Jammu and Kashmir Administrative Council (AC) on Friday approved the Banning of Unregulated Deposit Schemes Rules 2022 to protect the interests of depositors.
“The AC, which met here under the chairmanship of the Lieutenant Governor, Manoj Sinha today, approved the Jammu and Kashmir Banning of Unregulated Deposit Schemes Rules, 2022, under the Banning of Unregulated Deposit Schemes Act, 2019,” an official spokesman said.
The Act provides a comprehensive mechanism to ban unregulated deposits and to protect the interests of depositors.
Rajeev Rai Bhatnagar, Advisor to the Lieutenant Governor; Arun Kumar Mehta, Chief Secretary, J&K and Nitishwar Kumar, Principal Secretary to the Lieutenant Governor attended the meeting.
The Banning of Unregulated Deposit Schemes Act, 2019, puts a ban on the promotion, operation, and advertisement of unregulated deposit schemes, which lead to fraudulent default in the repayment or return of deposit amount on maturity, the spokesman said.
A prize chit or a money circulation scheme is also banned under the provisions of the Act, he added.
The Jammu and Kashmir Banning of Unregulated Deposit Schemes Rules, 2022, lay out the provisions and scope of powers and duties of the competent authority under the Act; powers vested while conducting investigation or inquiry; powers relating to absconding persons; power to seize properties; power to appoint legal practitioner and others; the power of government to empanel agencies for forensic or digital audit, valuation or sale of assets; valuation reports to be obtained while releasing properties attached; and ceiling for Self Help Groups.