Srinagar, July 22: The Administrative Council (AC) which met here under the chairmanship of the Lieutenant Governor, Manoj Sinha, on Friday approved the Jammu and Kashmir Banning of Unregulated Deposit Schemes Rules, 2022 under the “Banning of Unregulated Deposit Schemes Act, 2019.”
The Act provides a comprehensive mechanism to ban the unregulated deposits and to protect the interests of depositors.
Rajeev Rai Bhatnagar, Advisor to the Lieutenant Governor, Dr 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. A prize chit or a money circulation scheme is also banned under the provisions of the Act.
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; 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.