Provisional attachment under Section 7(3) of the Banning of Unregulated Deposit Schemes Act, 2019 may…
Under section 7(3) the Competent Authority may order provisional attachment where, on prescribed information and particulars, it has "reason to believe" that a deposit taker…
Choose your answer
Provisional attachment under Section 7(3) of the Banning of Unregulated Deposit Schemes Act, 2019 may be ordered where the Competent Authority believes that:
Answer and explanation
Correct answer B
Under section 7(3) the Competent Authority may order provisional attachment where, on prescribed information and particulars, it has "reason to believe" that a deposit taker is soliciting deposits in contravention of section 3. Running a scheme listed as regulated in the First Schedule, a civil suit or unpaid tax does not trigger the power.