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The Banning of Unregulated Deposit Schemes Act MCQs Set-3
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1. Section 19 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Powers of Competent Authority
b. Appeal to High Court
c. Investigation procedure
d. Punishment
2. Under Section 19, an appeal lies against:
a. Interim police order
b. Final order of the Designated Court
c. Order of Competent Authority only
d. RBI directions only
3. Who may file an appeal under Section 19?
a. Any person aggrieved
b. Competent Authority
c. Both A and B
d. Only deposit taker
4. The appeal under Section 19 shall be filed before:
a. Supreme Court
b. District Court
c. High Court
d. Consumer Forum
a. Thirty days
b. Forty-five days
c. Sixty days
d. Ninety days
6. The sixty-day limitation period is counted from:
a. Date of filing complaint
b. Date of attachment
c. Date of final order
d. Date of investigation
7. The High Court may entertain an appeal after expiry of sixty days if:
a. Depositors consent
b. Sufficient cause prevented filing within time
c. State Government permits
d. Competent Authority directs
8. The proviso to Section 19 grants the High Court power to:
a. Review criminal convictions only
b. Condone delay upon sufficient cause
c. Amend the Act
d. Transfer property automatically
9. For purposes of Section 19, “High Court” means:
a. Any High Court in India
b. High Court where appellant resides
c. High Court of the State or Union Territory where the Designated Court is situated
d. Supreme Court bench concerned
10. The appeal under Section 19 may be filed by:
a. Competent Authority also
b. Only depositors
c. Only accused persons
d. Only State Government
11. Section 20 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeal to High Court
b. Power of Supreme Court to transfer cases
c. Punishment for offences
d. Attachment of property
12. Under Section 20(1), the power to transfer cases is vested in:
a. High Court
b. Designated Court
c. Supreme Court
d. Competent Authority
13. The Supreme Court may transfer a case when:
a. There is a default in deposit schemes referred to in Section 30
b. A civil dispute arises
c. Police investigation is incomplete
d. Taxes remain unpaid
14. Under Section 20(1), a case may be transferred from:
a. One High Court to another High Court
b. One Designated Court to another Designated Court
c. One police station to another
d. One civil court to another civil court
15. The Supreme Court acts under Section 20 only on:
a. Suo motu cognizance
b. Application filed by Competent Authority or interested party
c. Recommendation of police only
d. Order of Designated Court only
16. Every application under Section 20(2) shall be supported by:
a. Government notification
b. Affidavit
c. Police report
d. Income-tax return
17. Under Section 20(3), compensation may be ordered if the application is:
a. Delayed
b. Unsupported by affidavit
c. Frivolous or vexatious
d. Filed by Competent Authority
18. Compensation under Section 20(3) may be awarded to:
a. State Government only
b. Any person who opposed the application
c. Supreme Court registry
d. Designated Court judge
19. The maximum compensation under Section 20(3) is:
a. Rs. 10,000
b. Rs. 25,000
c. Rs. 50,000
d. Rs. 1,00,000
20. The amount of compensation under Section 20(3) shall be such sum as the Supreme Court considers:
a. Mandatory
b. Appropriate in the circumstances of the case
c. Equal to the deposit amount
d. Fixed by statute without discretion
21. Section 21 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeal to High Court
b. Punishment for contravention of Section 3
c. Powers of Designated Court
d. Information sharing
22. A deposit taker soliciting deposits in contravention of Section 3 shall be punished with imprisonment:
a. Up to 1 year only
b. Not less than 1 year but up to 5 years
c. Not less than 2 years but up to 7 years
d. Not less than 3 years but up to 10 years
23. Fine for soliciting deposits in contravention of Section 3 shall not be less than:
a. Rs. 50,000
b. Rs. 1 lakh
c. Rs. 2 lakh
d. Rs. 5 lakh
24. A deposit taker accepting deposits in contravention of Section 3 shall be punished with imprisonment:
a. Not less than 1 year but up to 5 years
b. Not less than 2 years but up to 7 years
c. Not less than 3 years but up to 10 years
d. Up to 2 years only
25. Fine for accepting deposits in contravention of Section 3 shall not be less than:
a. Rs. 2 lakh
b. Rs. 3 lakh
c. Rs. 5 lakh
d. Rs. 10 lakh
26. Fraudulent default in repayment after accepting deposits in contravention of Section 3 is punishable with imprisonment:
a. Not less than 1 year but up to 5 years
b. Not less than 2 years but up to 7 years
c. Not less than 3 years but up to 10 years
d. Life imprisonment
27. Under Section 21(3), the minimum fine for fraudulent default is:
a. Rs. 2 lakh
b. Rs. 3 lakh
c. Rs. 5 lakh
d. Rs. 10 lakh
28. The maximum fine under Section 21(3) may extend to:
a. Ten lakh rupees only
b. Aggregate deposits collected
c. Twice the aggregate funds collected from subscribers, members or participants
d. Unlimited amount fixed by Court
29. For purposes of Section 21, the expression “fraudulently” has the same meaning as assigned in:
a. Companies Act, 2013
b. Indian Penal Code, section 25
c. Criminal Procedure Code
d. Indian Evidence Act
30. Under the Explanation to Section 21, entirely impracticable or unviable terms of a Deposit Scheme are:
a. Irrelevant
b. Conclusive proof of innocence
c. Relevant facts showing intention to defraud
d. Valid contractual clauses
31. Section 22 of the Banning of Unregulated Deposit Schemes Act, 2019 provides punishment for contravention of:
a. Section 3
b. Section 4
c. Section 5
d. Section 6
32. A deposit taker contravening Section 4 may be punished with imprisonment:
a. Up to 5 years
b. Up to 7 years
c. Not less than 7 years
d. Up to 10 years
33. Under Section 22, the minimum fine shall not be less than:
a. Rs. 2 lakh
b. Rs. 5 lakh
c. Rs. 10 lakh
d. Rs. 25 lakh
34. The maximum fine under Section 22 may extend to:
a. Rs. 10 crore
b. Rs. 20 crore
c. Rs. 25 crore
d. Rs. 50 crore
35. Under Section 22, the fine may extend to:
a. Three times the amount of profits made out of fraudulent default
b. Twice the deposit amount only
c. Ten times the profits
d. Unlimited amount fixed by Government
36. Under Section 22, the higher amount between statutory maximum and profits multiplier shall apply based on:
a. Lower amount
b. Whichever is higher
c. Judicial discretion only
d. Depositor preference
37. Section 23 provides punishment for contravention of:
a. Section 3
b. Section 4
c. Section 5
d. Section 6
38. Any person contravening Section 5 shall be punished with imprisonment:
a. Not less than 1 year but up to 5 years
b. Not less than 2 years but up to 7 years
c. Up to 10 years only
d. Life imprisonment
39. The fine under Section 23 may extend to:
a. Rs. 2 lakh
b. Rs. 5 lakh
c. Rs. 10 lakh
d. Rs. 25 lakh
40. Punishment under Section 23 applies to:
a. Deposit takers only
b. Companies only
c. Any person contravening Section 5
d. Regulators only
41. Section 24 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeals
b. Punishment for repeat offenders
c. Attachment of property
d. Information sharing
42. Section 24 applies to persons previously convicted of an offence punishable under this Chapter except:
a. Section 21
b. Section 22
c. Section 23
d. Section 26
43. A repeat offender under Section 24 shall be punished with imprisonment:
a. Not less than 1 year but up to 5 years
b. Not less than 2 years but up to 7 years
c. Not less than 5 years but up to 10 years
d. Life imprisonment
44. The minimum fine under Section 24 is:
a. Rs. 5 lakh
b. Rs. 10 lakh
c. Rs. 25 lakh
d. Rs. 50 lakh
45. The maximum fine under Section 24 may extend to:
a. Rs. 10 crore
b. Rs. 25 crore
c. Rs. 50 crore
d. Rs. 100 crore
46. Under Section 25(1), where an offence is committed by a deposit taker other than an individual:
a. Only the company is liable
b. Only directors are liable
c. Persons in charge and responsible for conduct of business are also deemed guilty
d. Liability is excluded
47. Under Section 25(2), a person may avoid liability if he proves:
a. He resigned later
b. Offence was committed without his knowledge or despite due diligence
c. Depositors suffered no loss
d. Government approved the scheme
48. Section 25(3) applies where the offence was committed with:
a. Consent or connivance
b. Neglect of director, manager, secretary, promoter, partner, employee or officer
c. Both A and B
d. Judicial approval
49. Under Section 25(3), which of the following persons may also be deemed guilty?
a. Director
b. Partner
c. Employee
d. All of the above
50. The liability under Section 25 arises in relation to offences committed by:
a. Individual deposit takers only
b. Deposit takers other than individuals
c. Government authorities only
d. Courts only
51. Section 26 of the Banning of Unregulated Deposit Schemes Act, 2019 provides punishment for contravention of:
a. Section 3
b. Section 5
c. Section 10
d. Section 15
52. Under Section 26, failure to give intimation required under Section 10(1) is punishable with:
a. Imprisonment only
b. Fine only
c. Community service
d. Attachment of property only
53. The maximum fine under Section 26 may extend to:
a. Rs. 1 lakh
b. Rs. 2 lakh
c. Rs. 5 lakh
d. Rs. 10 lakh
54. Section 26 also applies where a person fails to furnish:
a. Statements
b. Information or particulars required under Section 10(2)
c. Both A and B
d. Income-tax returns only
55. Under Section 27, cognizance of offences punishable under Section 4 can be taken only upon:
a. Police report
b. Complaint made by the Regulator
c. Private complaint by depositor
d. Order of Competent Authority
56. Section 27 begins with the phrase:
a. “Subject to the provisions of this Act”
b. “Without prejudice to”
c. “Notwithstanding anything contained in section 4”
d. “Save as otherwise provided”
57. The court barred from taking cognizance under Section 27 is:
a. High Court
b. Supreme Court
c. Designated Court
d. Consumer Forum
58. The proviso to Section 27 states that Sections 4 and 27 shall not apply in relation to:
a. Partnership firms
b. Companies
c. Co-operative societies
d. Trusts
59. Under Section 27, the complaint for cognizance must be made by:
a. Depositor
b. Police officer
c. Regulator
d. District Magistrate
60. Failure to furnish statements or particulars under Section 10(2) attracts:
a. Civil liability only
b. Punishment under Section 26
c. Automatic attachment
d. Imprisonment up to ten years
61. Section 28 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeals
b. Offences to be cognizable and non-bailable
c. Attachment of property
d. Information sharing
62. Under Section 28, every offence punishable under the Act shall be:
a. Non-cognizable and bailable
b. Cognizable and non-bailable
c. Cognizable and bailable
d. Compoundable only
63. Section 28 begins with the phrase:
a. “Without prejudice to”
b. “Save as otherwise provided”
c. “Notwithstanding anything contained in the Code of Criminal Procedure, 1973”
d. “Subject to the approval of the High Court”
64. Which of the following offences are excluded from Section 28?
a. Offence under Section 21
b. Offence under Section 22
c. Offence under Section 26
d. Both B and C
65. The offences excluded under Section 28 are:
a. Cognizable and non-bailable
b. Non-cognizable and bailable automatically
c. Not covered by the declaration under Section 28
d. Compoundable only
66. Section 29 deals with:
a. Powers of Designated Court
b. Competent Authority to be informed of offences
c. Appeal to High Court
d. Priority of depositors’ claims
67. Under Section 29, the duty to inform the Competent Authority lies upon:
a. Depositor
b. Designated Court
c. Police officer
d. Regulator only
68. The police officer shall inform the Competent Authority:
a. After completion of trial
b. On recording information about commission of an offence under the Act
c. Only after arrest of accused
d. After permission of High Court
69. The information referred to in Section 29 relates to:
a. Civil disputes only
b. Commission of an offence under the Act
c. Tax recovery proceedings
d. Company incorporation
70. Under Section 28, offences under the Act are generally:
a. Bailable
b. Cognizable and non-bailable except Sections 22 and 26
c. Non-cognizable only
d. Triable only by Magistrate
71. Section 30 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeal to High Court
b. Investigation of offences by Central Bureau of Investigation
c. Punishment for offences
d. Attachment of property
72. Under Section 30(1), the Competent Authority may act:
a. Only on court direction
b. On receipt of information under Section 29 or otherwise
c. Only after conviction
d. Only on complaint by depositors
73. The Competent Authority may refer the matter for CBI investigation when depositors, deposit takers or properties are located:
a. In one district only
b. In more than one State or Union Territory in India or outside India
c. Only outside India
d. Only in Union Territories
74. Under Section 30(1)(b), the total value involved must be of such magnitude as to:
a. Affect foreign trade only
b. Significantly affect public interest
c. Affect banking licences only
d. Exceed one crore rupees compulsorily
75. The matter under Section 30(1) is referred by the Competent Authority to:
a. Supreme Court
b. State Government
c. Central Government
d. Reserve Bank of India
76. The investigation referred to under Section 30 is conducted by:
a. State police
b. Designated Court
c. Central Bureau of Investigation
d. Income-tax authorities
77. Under Section 30(2), the reference made by the Competent Authority shall be deemed to be:
a. Approval of High Court
b. Consent of the State Government under Section 6 of the Delhi Special Police Establishment Act, 1946
c. Order of Supreme Court
d. Direction of RBI
78. Under Section 30(3), the Central Government may transfer investigation to the CBI under:
a. Section 5 of the Delhi Special Police Establishment Act, 1946
b. Section 154 CrPC
c. Section 138 Companies Act
d. Section 25 IPC
79. The Competent Authority must have reason to believe that:
a. Civil liability exists
b. Conditions mentioned in Section 30(1)(a) and (b) are satisfied
c. Only one depositor is affected
d. The offence is compoundable
80. Section 30 applies to offences relating to:
a. Deposit scheme or deposit schemes
b. Election disputes
c. Land acquisition only
d. Family settlements
81. Section 31 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeal to High Court
b. Power to enter, search and seize without warrant
c. Punishment for offences
d. Attachment of property
82. Under Section 31(1), the police officer exercising powers must not be below the rank of:
a. Constable
b. Sub-Inspector
c. Officer in-charge of a police station
d. Inspector General
83. The police officer may act when he has reason to believe that anything necessary for investigation may be found:
a. Anywhere in India without limitation
b. Within limits of the police station of which he is in-charge or attached
c. Only outside India
d. Only in court premises
84. Exercise of powers under Section 31(1) requires written authorisation from an officer not below the rank of:
a. Inspector
b. Deputy Superintendent of Police
c. Superintendent of Police
d. District Magistrate
85. Before conducting search, the officer shall record in writing, so far as possible:
a. Details of depositors only
b. Thing for which the search is to be made
c. Criminal history of accused
d. Value of attached property only
86. Under Section 31(1)(a), entry and search may be conducted:
a. Between sunset and sunrise only
b. Between sunrise and sunset
c. Only at midnight
d. At any time without restriction
87. Under Section 31(1)(b), in case of resistance, the officer may:
a. Withdraw immediately
b. Break open doors and remove obstacles using necessary force
c. Seek civil court decree first
d. Confiscate property without entry
88. Under Section 31(1)(c), the officer may seize:
a. Any record or property connected with deposit schemes in contravention of the Act
b. Government property only
c. Judicial records only
d. Election materials only
89. Under Section 31(1)(d), the officer may take into custody a person whom he has reason to believe:
a. Is a Government servant
b. Has committed an offence punishable under the Act
c. Is a witness only
d. Owes taxes
90. A person taken into custody under Section 31(1)(d) may be produced before:
a. Consumer Forum
b. High Court only
c. Designated Court
d. Local authority
91. Section 39 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Appeal to High Court
b. Laying of rules
c. Punishment for offences
d. Attachment of property
92. Under Section 39(1), rules made by the Central Government shall be laid before:
a. Supreme Court
b. Each House of Parliament
c. State Legislature only
d. Designated Court
93. Central Government rules are laid before Parliament for a total period of:
a. 15 days
b. 30 days
c. 60 days
d. 90 days
94. The 30-day laying period may be comprised in:
a. Only one session
b. One session or two or more successive sessions
c. Only winter session
d. Only monsoon session
95. If both Houses agree to modify a rule, it shall thereafter have effect only in:
a. Original form
b. Modified form
c. Suspended form
d. Repealed form
96. If both Houses agree that the rule should not be made, it shall:
a. Continue in original form
b. Be of no effect
c. Be enforced partially
d. Be sent to Supreme Court
97. Modification or annulment of rules is:
a. Retrospective with penalties
b. Without prejudice to validity of anything previously done
c. Automatically void ab initio
d. Applicable only prospectively with fines
98. Under Section 39(2), State/UT rules shall be laid before:
a. Parliament
b. Supreme Court
c. State Legislature or Union territory Legislature
d. High Court
99. If a State Legislature has two Houses, rules are laid before:
a. Governor only
b. Both Houses
c. High Court
d. Central Government
100. Section 39 primarily deals with:
a. Judicial review
b. Legislative control over delegated legislation
c. Criminal investigation
d. Property attachment
101. Section 40 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Laying of rules
b. Power to amend First Schedule
c. Appeal to High Court
d. Investigation by CBI
102. Under Section 40(1), the Central Government may by notification:
a. Repeal the Act
b. Add to or omit from the First Schedule
c. Create new courts
d. Grant bail
103. Any scheme added to the First Schedule under Section 40 becomes:
a. Unregulated Deposit Scheme
b. Regulated Deposit Scheme
c. Illegal deposit scheme automatically
d. Private contract only
104. A scheme omitted from the First Schedule under Section 40 shall:
a. Become criminal offence
b. Cease to be a Regulated Deposit Scheme
c. Become a banking scheme
d. Be transferred to RBI control
105. Under Section 40(2), every notification issued shall be laid before:
a. Supreme Court
b. Each House of Parliament
c. State Legislature only
d. Designated Court
106. Section 41 provides that the Act shall not apply to:
a. All banking transactions
b. Deposits taken in ordinary course of business
c. Foreign investments
d. Government contracts
107. Section 41 creates an exemption for deposits taken:
a. Under fraud schemes
b. In ordinary course of business
c. Under criminal intent
d. Without documentation
108. Section 42 deals with:
a. Punishment provisions
b. Amendment to certain enactments
c. Bail provisions
d. Search and seizure
109. Amendments under Section 42 are specified in:
a. First Schedule
b. Second Schedule
c. Third Schedule
d. Fourth Schedule
110. Section 40 primarily empowers the Central Government to:
a. Create new offences
b. Modify regulatory status of schemes in First Schedule
c. Conduct investigations
d. Issue arrest warrants
111. Section 43 of the Banning of Unregulated Deposit Schemes Act, 2019 deals with:
a. Amendment of Schedules
b. Power to remove difficulties
c. Appeal to High Court
d. Punishment for offences
112. Under Section 43(1), the Central Government may remove difficulties by:
a. Ordinance only
b. Order published in the Official Gazette
c. Supreme Court direction
d. State notification only
113. Any order under Section 43 must be:
a. Inconsistent with the Act
b. Consistent with the provisions of the Act
c. Approved by High Court
d. Approved by RBI only
114. The power to remove difficulties under Section 43 can be exercised up to:
a. 1 year from commencement
b. 2 years from commencement
c. 3 years from commencement
d. 5 years from commencement
115. Orders under Section 43 shall be laid before:
a. Supreme Court
b. Each House of Parliament
c. State Legislature only
d. Designated Court
116. Section 44(1) provides for repeal of:
a. Companies Act, 2013
b. RBI Act, 1934
c. Banning of Unregulated Deposit Schemes Ordinance, 2019
d. CrPC, 1973
117. Section 44(2) is a:
a. Penal provision
b. Saving clause
c. Definition clause
d. Procedural rule
118. Under Section 44(2), actions taken under the Ordinance shall be deemed to have been taken under:
a. Companies Act, 2013
b. This Act
c. IPC only
d. RBI guidelines only
119. The effect of Section 44(2) is:
a. Retrospective invalidation
b. Continuation/validation of past actions
c. Creation of new offences
d. Suspension of courts
120. Section 44 deals with:
a. Investigation powers
b. Repeal and saving
c. Attachment of property
d. Bail provisions
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