Andhra Pradesh Protection of Depositors of Financial Establishments (Amendment) Act, 20031
| [Andhra Pradesh Act No. 12 of 2003] | [25th April, 2003] |
An Act to Amend the Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Fifty-fourth Year of the Republic of India as follows:-
1 The following Act of the Andhra Pradesh Legislative Assembly which was reserved by the Governor on the 25th April, 2003 for the consideration and assent of the President received the assent of, the President on the 3rd July, 2003 and the said assent is hereby first published on the 14th July, 2003 in the Andhra Pradesh Gazette for general information:-
STATEMENT OF OBJECTS AND REASONS
The Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 (A.P. Act No. 17 of 1999), has been broadly fashioned on the lines of the Tamil Nadu protection of Interest of Depositors (in Financial Establishment) Act, 1997.
According to section 2(c) of the Act, 17/1999 "a company registered under the Companies Act, 1956" and "Non-banking financial company as defined in clause (f) of Section 45-I of the Reserve Bank of India Act, 1934" are exempted from the purview of "Financial Establishments" as defined thereunder. As a result a sizeable cross section of financial establishments are getting excluded from the regulatory framework of this important Act. To plug these loopholes in the Act, it has been decided to delete the exemption given to the aforesaid categories of financial establishments and to bring them also under the purview of this Act, by suitably amending the Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999.
This Bill seeks to give effect to the above decisions.
1. Short title extent and commencement.- (1) This Act may be called the Andhra Pradesh Protection of Depositors of Financial Establishments (Amendment) Act, 2003.
(2) it extends to the whole of the State of Andhra Pradesh.
(3) It shall come into force on such date as the Government may by notification appoint.
2. Amendment of section 2.- In the Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 (Act 17 of 1999), in section 2, for clause (c), the following clause shall be substituted, namely:-
"(c) ‘Financial Establishments’ means any person or group of individuals accepting deposit under any scheme or arrangement or in any other manner but does not include a corporation or a co-operative society owned or controlled by any State Government or the Central Government or a banking company as defined under clause (c) of section 5 of the Banking regulation Act, 1949 (Central Act 10 of 1949).".