7. Competent Authority. — (1) The appropriate Government shall, by notification, appoint one or
more officers not below the rank of Secretary to that Government, as the Competent Authority for the
purposes of this Act.
(2) The appropriate Government may, by notification, appoint such other officer or officers as it thinks
fit, to assist the Competent Authority in discharging its functions under this Act.
(3) Where the Competent Authority or officers appointed under sub-section (2), for the purposes of
this section, has reason to believe (the reason for such belief to be recorded in writing), on the basis of
such information and particulars as may be prescribed, that any deposit taker is soliciting deposits in
contravention of section 3, he may, by an order in writing, provisionally attach the deposits held by the
deposit taker and the money or other property acquired either in the name of the deposit taker or in the
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name of any other person on behalf of the deposit taker from the date of the order, in such manner as may
be prescribed.
(4) The Competent Authority shall, for the purposes of sub-section (3), have the same powers as vested
in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while conducting investigation or
inquiry in respect of the following matters, namely:—
(a) discovery and inspection;
(b) enforcing the attendance of any person, including any officer of a reporting entity and
examining him on oath;
(c) compelling the production of records;
(d) receiving evidence on affidavits;
(e) issuing commissions for examination of witnesses and documents; and
(f) any other matter which may be prescribed.
(5) The Competent Authority shall have power to summon any person whose attendance he considers
necessary whether to give evidence or to produce any records during the course of any investigation or
proceeding under this section.
(6) All the persons so summoned shall be bound to attend in person or through authorised agents, as
such officer may direct, and shall be bound to state the truth upon any subject respecting which they are
examined or make statements, and produce such documents as may be required.
(7) Every proceeding under sub-sections (4) and (5) shall be deemed to be a judicial proceeding within
the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860).
(8) Subject to any rules made in this behalf by the Central Government, any officer referred to in subsection (2) may impound and retain in his custody for such period, as he thinks fit, any records produced
before him in any proceedings under this Act:
Provided that the officer or officers referred to in sub-section (2) shall not—
(a) impound any records without recording his reasons for so doing; or
(b) retain in his custody any such records for a period exceeding three months, without obtaining
the previous approval of the Competent Authority.
8. Designated Court. — (1) The appropriate Government shall, with the concurrence of the Chief
Justice of the concerned High Court, by notification, constitute one or more Courts known as the
Designated Courts for such area or areas or such case or cases as may be specified in such notification,
which shall be presided over by a Judge not below the rank of a District and Sessions Judge or Additional
District and Sessions Judge.
(2) No Court other than the Designated Court shall have jurisdiction in respect of any matter to which
the provisions of this Act apply.
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(3) When trying an offence under this Act, the Designated Court may also try an offence, other than an
offence under this Act, with which the accused may, under the Code of Criminal Procedure, 1973 (2 of
1974), be charged at the same trial.