Banning of unregulated Deposit Schemes Act, 2019

This 2025 edition of The Banning of Unregulated Deposit Schemes Act, 2019 (No 21 of 2019) furnishes India’s frontline statute for protecting small investors from illicit “get-rich-quick” schemes and ponzi operations. Fully consolidated with the Banning of Unregulated Deposit Schemes Rules, 2020 (S.O. 663 E, dt. 12-2-2020), the volume reproduces the law verbatim—accompanied by crisp short comments that flag definitions, registration triggers, and enforcement powers—while retaining full Bare-Act integrity for examinations and courtroom citation.

Core statutory coverage

• Total prohibition—no person may solicit, accept, or manage money under any deposit scheme that is not specifically regulated by SEBI, RBI, IRDAI, NHB, or other competent regulators.
• Whitelisting concept—deposit schemes are lawful only if expressly listed in the First Schedule; everything else is banned by default.
• Mandatory reporting—state governments must maintain online public portals of authorised schemes; regulators share intelligence through a central database.
• Attachment & confiscation powers—District Magistrates and Designated Authorities can provisionally attach property, seize records, and secure investor funds ex-parte.
• Special courts & speedy trial—dedicated courts empowered to order disgorgement and restitution within tight timelines.
• Stringent penalties—imprisonment up to 10 years and fines up to ₹ 50 crore for promoters and key associates of illegal schemes.
• Role of professional facilitators—auditors, lawyers, and valuers liable for willful participation or concealment.

This edition is particularly suited for

• AIBE candidates and law students studying financial-fraud and investor-protection statutes.
• Banking & NBFC compliance officers, chartered accountants, and company secretaries vetting fund-raising products.
• Law-enforcement agencies, economic-offences wings, and public prosecutors building attachment and restitution cases.
• Policy analysts, journalists, and consumer-rights NGOs monitoring ponzi-scheme crackdowns and restitution outcomes.

Presented verbatim yet enriched with pinpoint explanatory notes, this Bare Act offers clarity, authenticity, and instant practical insight—indispensable for statutory compliance, professional practice, and academic mastery.