Sections 41, 42, 43 and 44 of the Banning of Unregulated Deposit Schemes Act, 2019
Sections 41 to 44 are the concluding provisions of the Banning of Unregulated Deposit Schemes Act, 2019 ("BUDS Act"). They deal with deposits taken in the ordinary course of business, consequential amendments to other enactments, the Central Government's limited power to remove implementation difficulties, and repeal and saving of the 2019 Ordinance.
Section 41 - Act not to apply to certain deposits
The provisions of this Act shall not apply to deposits taken in the ordinary course of business.
Meaning and legal effect
Section 41 creates a specific statutory exclusion. Where an amount is genuinely received as a deposit in the ordinary course of a lawful business, the BUDS Act does not apply merely because money has been received. The provision should be read with the definition of "deposit" in Section 2 and with the overall object of the Act, which is aimed at unregulated deposit schemes rather than ordinary commercial receipts.
Section 42 - Amendment to certain enactments
The enactments specified in the Second Schedule shall be amended in the manner specified therein.
Meaning and legal effect
Section 42 is a consequential-amendment provision. It does not itself reproduce every amendment. Instead, the legal changes are contained in the Second Schedule to the BUDS Act. The Second Schedule must therefore be consulted whenever the effect of Section 42 on another enactment is in issue.
Section 43 - Power to remove difficulties
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty:
Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
Meaning and legal effect
Section 43 permits the Central Government to address implementation difficulties by an order published in the Official Gazette, but the order cannot be inconsistent with the Act. The section also imposed a three-year outer limit from commencement for making such an order. In addition, every such order is required to be placed before both Houses of Parliament.
Section 44 - Repeal and saving
(1) The Banning of Unregulated Deposit Schemes Ordinance, 2019, is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.
Meaning and legal effect
Section 44 repeals the Ordinance that preceded the Act, while protecting continuity. Acts, orders, proceedings or other action validly taken under the Ordinance are treated as having been done or taken under the BUDS Act itself.
Official source and current reference
The Banning of Unregulated Deposit Schemes Act, 2019 is Central Act No. 21 of 2019 and received assent on 31 July 2019. The Act is available from the official India Code portal maintained by the Government of India.
This article is intended as a convenient statutory reference. For court, compliance or transaction work, the official Act, applicable rules, notifications and subsequent legal developments should also be checked.