Frequently Asked Questions

Penal provisions of PIDFE Act

Frequently Asked Questions

1. There are many jewellery shops taking money from the public in instalments. Does this amount to acceptance of deposits?

A. The money accepted by jewellery shops in instalments for the purpose of delivering jewellery within 365 days is not deposit. If, in return for the money received, the jewellery shop promises to return the principal amount along with or without interest, or if the jewellery is delivered after more than 365 days of receiving the instalments, it is deposit.

2. What are Money Circulation schemes?

A. Money circulation schemes are schemes promising easy or quick money upon enrolment of members. Rather than coming from sale of products or services, income under these pyramid structure schemes are primarily linked with enrolling more and more members from whom hefty subscription fees are taken. All members are required to enrol more members. A portion of the amount so collected is distributed among the members at the top of the pyramid. Any break in the chain leads to the collapse of the pyramid. Members lower in the pyramid are affected more.

3. What are Ponzi schemes?

A. Ponzi schemes collect money from the public on promises of high returns. As there is no asset creation, money collected from one depositor is paid as returns to another. Since there is no other activity generating returns, such schemes eventually become unviable.

4. What precautions should be taken by the public when someone offers a scheme that promises high rates of return?

A. Before investing, please ensure that the entity is registered with one of the financial regulators and is authorised to accept public deposit. Generally, investing for high returns is fraught with risk and extreme caution is advised.

5. Can one lodge an FIR online through this website?

A. No. Any complaints received online through the website is treated as an enquiry. For lodging an FIR, the complainant has to approach the concerned Police Station.

6. Do Non Banking Financial Corporations (NBFCs) come under the purview of West Bengal Protection of Interest of Depositors in Financial Establishments (WBPIDFE) Act?

A. Yes.

7. After the case has been started under WBPIDFE Act against a Company, where can I apply for recovery of my deposit with the Company? What is the procedure for such application?

In this regard, the Directorate of Economic Offences (DEO), West Bengal will publish advertisement in the print media and also on this website. Application for recovery of deposit will need to be submitted in the prescribed format to DEO. The format will be given in the advertisement. The deposit receipt will need to be attached with the application. The application has to be submitted within the due date given in the advertisement. If this deadline is missed, there is another opportunity for submitting the application. At a later date, the designated Court will issue notice for everyone with interest in the assets to submit their application.

8. Which is the designated Court for trial of cases under WBPIDFE Act?

A. 3rd Court of Additional District & Sessions Judge in the Headquarters of all the Districts except Uttar Dinajpur, Court of District & Sessions Judge, Uttar Dianjpur and the Court of Judge, Bench – II, City Sessions Court, Calcutta.

9. If aggrieved with the order of the designated Court, whom can I approach?

A. High court at Calcutta is the appellate Court.
10. Can I apply for recovery of my deposit online?

The deposit receipt has to be deposited physically and a receipt collected from DEO in this regard.

11. As a Financial Establishment under WBPIDFE Act, do I have to file any returns with DEO?

A. Yes, it is mandated to file two returns as per Form I and Form II of the Rules under the Act. These should be filed physically or by post at present. Efforts are on to facilitate digital filing.