Delhi HC closes case concerning law banning unregulated deposit schemes

The Delhi High Court has closed the proceedings on a petition concerning the implementation of certain provisions of a law banning unregulated deposit schemes. A bench headed by Chief Justice Satish Chandra Sharma noted the steps taken by the authorities concerned in pursuance of the Banning of Unregulated Deposit Schemes Act and opined that no further orders from the court were required on the public interest litigation by Abhijit Mishra.

The court recorded that by a notification issued in September 2021, the Delhi government has appointed its Principal Secretary/Secretary (Revenue) as the "competent authority" under the Act and has also already framed the rules, which have been approved by the central government and are pending with the Reserve Bank of India.

As far as establishment of a special court under the law is concerned, the court added, a request for the same by the city government has been made to it.


"In light of the aforesaid, no further orders are required to be passed in the present PIL. The petition is disposed of," the bench, also comprising Justice Subramonium Prasad, said in its order dated October 13.

The petitioner had moved the high court in April 2020, claiming that in spite of the law coming into force in 2019, the Delhi government was yet to appoint a competent authority or set up designated courts under it or frame rules for its implementation.

The Act provides for a comprehensive mechanism to ban unregulated deposit schemes, other than deposits taken in the ordinary course of business, and to protect the interest of depositors."

The petitioner had contended that in the absence of rules for implementation of the Act, police officers did not know the procedure to be followed for prosecution of violations of this law.