Under Section 12 of the Banning of Unregulated Deposit Schemes Act, 2019, amounts due to depositors…
Section 12 makes amounts due to depositors payable "in priority over all other debts" and over revenues, taxes, cesses and other rates payable to the appropriate Government…
Choose your answer
Under Section 12 of the Banning of Unregulated Deposit Schemes Act, 2019, amounts due to depositors shall be paid:
Answer and explanation
Correct answer C
Section 12 makes amounts due to depositors payable "in priority over all other debts" and over revenues, taxes, cesses and other rates payable to the appropriate Government or a local authority. Depositors therefore do not rank equally with, or behind, Government dues, subject only to the SARFAESI Act and the Insolvency and Bankruptcy Code.