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The Banning of Unregulated Deposit Schemes Act MCQs Set-2
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1. Section 9 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Punishment
b. Central database
c. Appeals
d. Attachment of property
2. Under Section 9(1), the Central Government may designate:
a. A police officer
b. An authority to create and maintain an online database
c. A Sessions Court
d. A political authority
3. The authority under Section 9(1) may be:
a. Only a newly constituted authority
b. Only an existing authority
c. Either an existing or newly constituted authority
d. Only a judicial authority
4. The online database under Section 9 relates to information on:
a. Banks only
b. Depositors only
c. Deposit takers operating in India
d. Foreign companies only
5. The database contemplated under Section 9 is to be:
a. Offline and confidential
b. Judicial in nature
c. Online database
d. Maintained by State Governments only
6. The authority designated under Section 9(1) may require information from:
a. Regulators
b. Competent Authority
c. Both A and B
d. Depositors only
7. Information shared under Section 9(2) relates to:
a. Election records
b. Deposit takers
c. Criminal convictions only
d. Land disputes
8. The information required under Section 9(2) shall be:
a. As may be prescribed
b. As directed by Supreme Court only
c. Determined by depositors
d. Prescribed by High Court rules
9. The power to designate authority under Section 9 lies with:
a. Appropriate Government
b. Central Government
c. Reserve Bank of India
d. Parliament
10. Under Section 9(2), the authority may require sharing of information by:
a. Regulator or Competent Authority
b. District Collector only
c. Police authorities only
d. Public prosecutors only
11. Section 10 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Designated Courts
b. Information of business by deposit taker
c. Punishment for offences
d. Appeals
12. Under Section 10(1), every deposit taker commencing business after commencement of the Act shall:
a. Seek permission from High Court
b. Intimate the authority referred to in Section 9(1)
c. Register with police authorities
d. Obtain Parliamentary approval
13. The intimation under Section 10(1) shall be given:
a. In such form and manner as may be prescribed
b. Orally only
c. Through court proceedings only
d. Without any time limit
14. The authority referred to in Section 10(1) is the authority mentioned under:
a. Section 7
b. Section 8
c. Section 9(1)
d. Section 11
15. Under Section 10(2), the Competent Authority may act when it has reason to believe that:
a. Deposits are accepted pursuant to an Unregulated Deposit Scheme
b. A civil dispute exists
c. Taxes are unpaid
d. Banking licence has expired
16. The Competent Authority may direct a deposit taker to furnish:
a. Statements
b. Information or particulars relating to deposits
c. Connected details regarding deposits received
d. All of the above
17. The requirement of intimation under Section 10(1) applies to:
a. Deposit takers accepting or soliciting deposits under Section 2(4)
b. Judges only
c. Government departments only
d. Political parties only
18. The Explanation to Section 10 clarifies that the requirement of intimation applies to:
a. Companies accepting deposits under Chapter V of the Companies Act, 2013
b. Foreign Governments only
c. Courts only
d. Insurance tribunals only
19. The power under Section 10(2) may be exercised by:
a. Designated Court
b. Competent Authority
c. Parliament
d. Registrar of Companies only
20. The time within which intimation under Section 10(1) is to be made shall be:
a. Determined by each deposit taker
b. Prescribed
c. Fixed by Supreme Court
d. Unlimited
21. Section 11 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeals
b. Information to be shared
c. Attachment of property
d. Punishment
22. Under Section 11(1), the Competent Authority shall share information received under Section 29 with:
a. Central Bureau of Investigation
b. Authority designated under Section 9
c. Both A and B
d. High Court only
23. The authority referred to in Section 11(1) is designated by:
a. Supreme Court
b. Central Government
c. Reserve Bank of India
d. State Government only
24. Under Section 11(2), which authority may share information relating to offences under the Act?
a. Appropriate Government
b. Income-tax authorities
c. Regulators or investigation agencies
d. All of the above
25. Information under Section 11(2) shall be shared with:
a. Police or Central Bureau of Investigation
b. Consumer forum only
c. Civil Courts only
d. Election Commission
26. Section 11(3) applies to the principal officer of:
a. Banking company
b. State Bank of India
c. Co-operative bank
d. All of the above
27. Under Section 11(3), the duty to inform arises when the principal officer has reason to believe that:
a. A client is evading taxes
b. A client is a deposit taker acting in contravention of the Act
c. A company has defaulted in loans
d. A civil suit is pending
28. The information under Section 11(3) shall be given:
a. Within thirty days
b. After court permission
c. Forthwith
d. Only after investigation
29. Under Section 11(3), the information shall be provided to:
a. High Court
b. Competent Authority
c. Parliament
d. Registrar of Companies
30. Which of the following banks is specifically mentioned in Section 11(3)?
a. Regional Rural Bank
b. Multi-State Co-operative Bank
c. Subsidiary Bank
d. All of the above
31. Section 12 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Designated Courts
b. Priority of depositors’ claim
c. Appeals
d. Investigation powers
32. Under Section 12, amounts due to depositors shall be paid:
a. After payment of taxes
b. Equally with Government dues
c. In priority over all other debts and Government dues
d. Only after court approval
33. The priority under Section 12 applies against:
a. Revenues and taxes
b. Cesses and rates payable to Government or local authority
c. Other debts
d. All of the above
34. Section 12 is subject to:
a. Companies Act, 2013 only
b. SARFAESI Act, 2002 and Insolvency and Bankruptcy Code, 2016
c. Criminal Procedure Code only
d. Income Tax Act only
35. Section 13 deals with:
a. Fraudulent default
b. Precedence of attachment
c. Central database
d. Search and seizure
36. Under Section 13(1), an order of provisional attachment passed by the Competent Authority shall have:
a. No legal effect
b. Equal status with all attachments
c. Precedence and priority over other attachments
d. Priority only over private debts
37. The precedence under Section 13(1) is available to the extent of:
a. Government tax claims
b. Claims of depositors
c. Claims of shareholders
d. Claims of local authorities
38. The provisional attachment referred to in Section 13 is passed by:
a. Designated Court
b. High Court
c. Competent Authority
d. Central Bureau of Investigation
39. Section 13 gives priority over attachments made for recovery of:
a. Debts
b. Revenues and taxes
c. Cesses and other rates payable to Government or local authority
d. All of the above
40. Sections 12 and 13 both begin with the phrase:
a. “Without prejudice to”
b. “Notwithstanding anything contained”
c. “Save as otherwise provided in the SARFAESI Act, 2002 or the Insolvency and Bankruptcy Code, 2016”
d. “Subject to approval of the High Court”
41. Under Section 13(2)(a), a provisional attachment shall continue until:
a. Expiry of thirty days
b. Order of the Competent Authority
c. Order under Section 15(3) or 15(5) by the Designated Court
d. Approval of the Central Government
42. The order continuing or modifying attachment is passed by:
a. Competent Authority
b. Designated Court
c. Police authority
d. Reserve Bank of India
43. Under Section 13(2)(b), attached money or property shall vest in:
a. State Government
b. Deposit taker
c. Competent Authority
d. Central Bureau of Investigation
44. The attached property shall remain vested in the Competent Authority:
a. Permanently
b. Till further order of the Designated Court
c. For one year only
d. Till police investigation ends
45. Under Section 13(3), the Competent Authority shall open an account in:
a. Co-operative society
b. Foreign bank
c. Scheduled bank
d. Post office only
46. Money realised under the Act shall not be utilised except under:
a. Instructions of depositors
b. Orders of police
c. Instructions of the Designated Court
d. Approval of local authority
47. Under Section 13(4), the Competent Authority shall not dispose of attached property except:
a. On oral request of depositors
b. In accordance with order of Designated Court
c. With police approval
d. After one year
48. Section 13(5) empowers the Competent Authority to order immediate sale of:
a. Immovable property only
b. Perishable items or assets
c. Government property
d. Court records
49. The power under Section 13(5) may be exercised when the Competent Authority:
a. Receives permission from Parliament
b. Thinks it expedient
c. Is directed by police
d. Obtains consent of deposit taker
50. Proceeds from sale of perishable assets under Section 13(5) shall be:
a. Distributed among officers
b. Deposited in Government treasury permanently
c. Utilised in the same manner as other property under the Act
d. Returned immediately to deposit taker
51. Section 14 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeals
b. Application for confirmation of attachment and sale of property
c. Punishment for offences
d. Information sharing
52. Under Section 14(1), the Competent Authority shall file an application before:
a. High Court
b. Supreme Court
c. Designated Court
d. Civil Judge
53. The application under Section 14(1) is for:
a. Acquittal of accused
b. Making provisional attachment absolute
c. Grant of bail
d. Recovery of taxes
54. The Competent Authority shall file the application within:
a. Fifteen days
b. Thirty days from provisional attachment
c. Ninety days
d. One year
55. The period for filing application under Section 14(1) may extend up to:
a. Forty-five days
b. Sixty days
c. Ninety days
d. One hundred twenty days
56. Extension of time under Section 14(1) requires:
a. Approval of depositors
b. Reasons to be recorded in writing
c. Permission of police authorities
d. Notification by Central Government
57. The application under Section 14(1) may seek permission to sell attached property by:
a. Public auction
b. Private sale if necessary
c. Both A and B
d. Government allotment only
58. Particulars in the application under Section 14(1) shall be:
a. Prescribed
b. Decided by deposit taker
c. Determined by local authority
d. Fixed by High Court Rules only
59. Under Section 14(2), where attachment is made with permission of a Designated Court in another State, confirmation application shall be filed:
a. Before any local court
b. Before Supreme Court
c. In that Court
d. Before police authority
60. Section 14(2) applies when money or property has been attached:
a. By private agreement
b. On permission granted by Designated Court in another State or Union Territory
c. Under Income Tax Act only
d. Without any court order
61. Section 15 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Search and seizure
b. Confirmation of attachment by Designated Court
c. Appeals
d. Punishment
62. Upon receipt of an application under Section 14, the Designated Court shall:
a. Dismiss the application automatically
b. Issue notice
c. Transfer the matter to High Court
d. Conduct police inquiry only
63. Under Section 15(1), notice shall be issued to:
a. Deposit taker
b. Person whose property is attached
c. Both A and B
d. Police authorities only
64. The notice under Section 15(1) requires the person to show cause within:
a. Fifteen days
b. Thirty days from issue of notice
c. Sixty days
d. Ninety days
65. The show cause notice under Section 15(1) relates to why:
a. Bail should not be granted
b. Attachment should not be made absolute
c. Investigation should not continue
d. Taxes should not be recovered
66. The Designated Court may also consider whether attached properties should be:
a. Released immediately
b. Gifted to Government
c. Sold
d. Destroyed
67. Under Section 15(2), notice shall also be issued to persons:
a. Having or likely to claim interest or title in the property
b. Working in Government offices
c. Filing tax returns
d. Serving as witnesses only
68. Persons notified under Section 15(2) may:
a. File criminal appeal only
b. Raise objections to attachment
c. Seek transfer of case automatically
d. Demand compensation immediately
69. Persons claiming interest in the property are required to appear:
a. On the same date as persons under Section 15(1)
b. On any date of their choice
c. Before police authorities only
d. After disposal of attachment proceedings
70. The Designated Court under Section 15 acts upon an application filed under:
a. Section 10
b. Section 12
c. Section 14
d. Section 18
71. Under Section 15(3), the Designated Court shall pass an order after:
a. Police investigation only
b. Adopting such procedure as may be prescribed
c. Approval of State Government
d. Direction of RBI
72. Under Section 15(3)(a), the Designated Court may:
a. Cancel all proceedings
b. Make the provisional order of attachment absolute
c. Transfer property to Government
d. Grant compensation to accused
73. Under Section 15(3)(b), the Designated Court may:
a. Release the entire property compulsorily
b. Vary the attachment by releasing a portion of property
c. Destroy attached property
d. Convert attachment into imprisonment
74. Under Section 15(3)(c), the Designated Court may:
a. Cancel the provisional order of attachment
b. Close the investigation permanently
c. Order acquittal
d. Remove Competent Authority
75. In case of orders under clause (a) or (b), the Competent Authority may be directed to sell the property by:
a. Public auction
b. Private sale if necessary
c. Both A and B
d. Government allotment only
76. Under Section 15(4), the Designated Court shall not release property from attachment unless:
a. The deposit taker or person concerned has interest in such property
b. Sufficient property remains for repayment to depositors
c. Both A and B
d. Police grant permission
77. While varying or cancelling attachment, the Court must ensure:
a. Government taxes are paid first
b. Sufficient amount remains for repayment to depositors
c. Property is transferred abroad
d. Criminal trial is concluded
78. The Designated Court may release property only if satisfied that:
a. The deposit taker has no connection with property
b. The concerned person has interest in such property
c. Property belongs to Government
d. Depositors consent unanimously
79. Under Section 15(5), the Designated Court may issue directions for:
a. Criminal prosecution only
b. Equitable distribution among depositors
c. Sale of Government land
d. Appointment of police officers
80. Money distributed under Section 15(5) may consist of:
a. Money attached
b. Money realised from sale of attached property
c. Both A and B
d. Government grants only
81. Section 16 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeals
b. Attachment of property of mala fide transferees
c. Punishment for offences
d. Information sharing
82. Under Section 16(1), the Designated Court may act when it believes that the deposit taker transferred property:
a. In good faith
b. For commensurate consideration
c. Otherwise than in good faith and not for commensurate consideration
d. Under court order
83. The Designated Court may issue notice to:
a. Only direct transferees
b. Any transferee whether or not property was received directly from deposit taker
c. Only Government authorities
d. Only banking institutions
84. Under Section 16(1), the transferee may be required to show cause why:
a. Criminal prosecution should not begin
b. Equivalent value of his property should not be attached
c. Tax should not be imposed
d. Deposit should not be refunded
85. The attachment under Section 16 relates to property equivalent to:
a. Market rent of transferred property
b. Proper value of the property transferred
c. Government valuation only
d. Stamp duty payable
86. Under Section 16(2), attachment may be ordered where the transferee:
a. Appears and proves good faith
b. Does not appear and show cause on specified date
c. Refunds deposits immediately
d. Files appeal before High Court
87. The Designated Court may order attachment if satisfied that the transfer was:
a. Bona fide and lawful
b. Supported by adequate consideration
c. Not bona fide and not for commensurate consideration
d. Approved by Government
88. Under Section 16(2), the property attached shall be:
a. Entire property of transferee compulsorily
b. Property equivalent in value to transferred property
c. Only immovable property
d. Government property
89. The notice under Section 16(1) specifies:
a. Date for appearance and showing cause
b. Date for criminal trial only
c. Date for police interrogation only
d. Date fixed by depositors
90. The authority empowered under Section 16 is:
a. Competent Authority
b. Designated Court
c. Reserve Bank of India
d. Local authority
91. Section 17 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeals
b. Payment in lieu of attachment
c. Punishment for offences
d. Information sharing
92. Under Section 17(1), an application may be made before:
a. Police authority
b. Competent Authority
c. Confirmation of attachment
d. High Court only
93. The application under Section 17(1) is made to:
a. District Magistrate
b. Designated Court
c. Central Government
d. Reserve Bank of India
94. Under Section 17(1), permission may be sought to deposit:
a. Government tax
b. Fair value of the property in lieu of attachment
c. Court fees only
d. Bank guarantee only
95. Which of the following persons may apply under Section 17(1)?
a. Deposit taker
b. Person referred to in Section 15(1)
c. Transferee referred to in Section 16
d. All of the above
96. Section 17 applies where the property:
a. Is permanently confiscated
b. Is about to be attached or has been provisionally attached
c. Belongs to Government only
d. Is outside India only
97. Under Section 17(2), while permitting deposit in lieu of attachment, the Designated Court may order payment towards:
a. Damages
b. Costs
c. Interest only
d. Penalty only
98. The amount deposited under Section 17(1) represents:
a. Market rent of property
b. Fair value of the property
c. Government valuation only
d. Stamp duty payable
99. The power under Section 17(2) is exercised by:
a. Competent Authority
b. Designated Court
c. Central Bureau of Investigation
d. Local authority
100. Under Section 17, payment in lieu of attachment may be allowed:
a. Only after confirmation of attachment
b. Before confirmation of attachment
c. Only after criminal conviction
d. Only after appellate order
101. Section 18 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeals
b. Powers of Designated Court
c. Investigation by police
d. Penalties
102. Under Section 18(1)(a), the Designated Court has power to:
a. Arrest debtors
b. Approve the statement of dues of the deposit taker due from various debtors
c. Dissolve companies
d. Grant banking licences
103. The Designated Court may assess:
a. Criminal liability only
b. Value of assets of the deposit taker
c. Election disputes
d. Tax rates
104. Under Section 18(1)(b), the Designated Court may finalise:
a. List of depositors and their respective dues
b. Police investigation report
c. Government budget
d. List of judges
105. The Designated Court may direct the Competent Authority to:
a. Take possession of assets of the deposit taker
b. Sell or transfer attached assets
c. Realise attached assets
d. All of the above
106. Attached assets under Section 18(1)(c) may be sold by:
a. Public auction
b. Private sale
c. Either A or B depending on nature of assets
d. Government allotment only
107. Sale proceeds realised under Section 18(1)(c) shall be credited to:
a. Government treasury only
b. Personal account of deposit taker
c. Bank account of the Competent Authority
d. High Court account
108. Under Section 18(1)(e), where realised money is insufficient, the Designated Court may order:
a. Full payment compulsorily
b. Proportionate payment to depositors
c. Waiver of all deposits
d. Imprisonment of depositors
109. Section 18(1)(f) empowers the Designated Court to direct disgorgement of:
a. Wrongful gain made or loss averted
b. Government grants only
c. Court fees only
d. Insurance premiums
110. Under Section 18(1)(g), the Designated Court may:
a. Pass any other order deemed fit for realisation of assets and repayment to depositors
b. Amend the Constitution
c. Dissolve Parliament
d. Appoint Governors
111. Under Section 18(2), an application may be made by:
a. Any person interested in attached property
b. Only the deposit taker
c. Only Government authorities
d. Only depositors
112. Before passing an order under Section 18(2), the Designated Court shall:
a. Obtain approval from Parliament
b. Give the Competent Authority an opportunity of being heard
c. Seek police permission
d. Consult the RBI
113. Under Section 18(2), the Designated Court may pass such order as it considers:
a. Arbitrary
b. Punitive only
c. Just and reasonable
d. Temporary only
114. Section 18(2)(a) permits provision of sums reasonably necessary for:
a. Maintenance of applicant and family
b. Expenses connected with defence in criminal proceedings
c. Both A and B
d. Foreign travel expenses
115. Criminal proceedings referred to in Section 18(2)(a) must be initiated:
a. In Supreme Court
b. Before police authority
c. In the Designated Court under the Act
d. Before consumer forum
116. Under Section 18(2)(b), the Designated Court may safeguard:
a. Political interests
b. Interest of any business affected by attachment
c. Foreign investments only
d. Government contracts only
117. The property referred to in Section 18(2) must be:
a. Attached and vested in the Competent Authority
b. Government property only
c. Unattached movable property
d. Property outside India only
118. For purposes of Section 18, “deposit taker” includes:
a. Directors
b. Promoters and managers
c. Members of the establishment
d. All of the above
119. The Explanation to Section 18 also includes:
a. Only shareholders
b. Any person whose property or assets have been attached under the Act
c. Government servants only
d. Judicial officers only
120. Maintenance expenses under Section 18(2)(a) may be provided from:
a. Any Government fund
b. Property attached and vested in the Competent Authority in which applicant claims interest
c. Police welfare fund
d. Court fines only
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