43. Staff of National Housing Bank.-
(1) The National Housing Bank may appoint such number of
officers and other employees as it considers necessary or desirable for the
efficient performance of its functions and determine the terms and conditions
of their appointment and service.
(2) The duties and conduct, terms and conditions of service and
the establishment and maintenance of provident fund or any other fund for the
benefit of the officers and other members of staff of the National Housing Bank
shall be such as may be prescribed.
(3) The National Housing Bank may depute any officer or any
member of its staff for such period and on such terms and conditions as it may
determine, to any institution including a housing finance institution.
(4) Nothing contained the this section shall empower the
National Housing Bank to depute any officer or member of its staff to any
institution on any salary, emoluments or other terms and conditions which is or
are less favourable to him than that or those to which he is entitled to
immediately before such deputation.
(5) The
National Housing Bank may, without prejudice to the provisions of section 54AA
of the Reserve Bank of India Act, 1934, receive or take on deputation any
officer or other employees from any institution including a housing finance
institution for such period and on such terms and conditions as it may think
necessary in the interest of the National Housing Bank.
32[43A. Delegation of powers.- The Board may, by
general or special order, delegate to an officer or officers of the National
Housing Bank, subject to such conditions and limitations, if any, as may be
specified in the order, such of its powers and duties under this Act as it may
deem necessary. ]
44. Obligation as to fidelity and
secrecy.- (1) The National Housing Bank shall not, except as otherwise
required by this Act or any other law, divulge any information relating to, or
to the affairs of, its constituents except in circumstances in which it is, in
accordance with the law or practice and usage customary among bankers,
necessary or appropriate for the National Housing Bank to divulge such
information.
(2) Every director, member of a committee, auditor, advisor,
officer or other employee of the National Housing Bank or of the Reserve Bank,
whose services are utilised by the National Housing Bank under the provisions
of this Act, shall, before entering upon his duties, make a declaration of
fidelity and secrecy in the form set out in the First Schedule to this Act.
33[(3) Nothing
contained in this section shall apply to the credit information disclosed under
the Credit Information Companies (Regulation) Act, 2005.]
45.Defects in appointment not to
invalidate acts, etc.- (1) No act or proceeding of the Board or of any committee of
the National Housing Bank shall be questioned on the ground merely of the
existence of any vacancy in, or defect in the constitution of, the Board or the
committee, as the case may be.
(2) No act done by any person acting in good faith as a
director of the Board or as a member of a committee of the National Housing
Bank shall become invalid merely on the ground that he was qualified to be a
director or that there was any other defect in his appointment.
34[45A. Arrangement with National Housing Bank on appointment
of directors to prevail.- (1)
Where any arrangement entered into by the National Housing Bank with a housing
finance institution which is a company provides for the appointment by the National
Housing Bank of one or more directors of such housing finance institution, such
provision and any appointment of directors made in pursuance thereof shall be
valid and effective notwithstanding anything to the contrary contained in the
Companies Act, 1956 or in any other law for the time being in force or in the
memorandum, articles of association or any other instrument relating to that
housing finance institution, or any provision regarding share qualification,
age limit, number of directorships, removal from office of directors and such
like conditions contained in any such law or instrument aforesaid, shall not
apply to any director appointed by the National Housing Bank in pursuance of
the arrangement as aforesaid.
(2) any director appointed as aforesaid shall-
(a) hold office during the pleasure of the National Housing
Bank and may be removed or substituted by any person by order in writing of the
National Housing Bank;
(b) not incur any obligation or liability by reasons only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or anything in relation thereto;
(b) not incur any obligation or liability by reasons only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or anything in relation thereto;
(c) not be liable to retirement by rotation and shall not be
taken into account for computing the number of directors liable to such
retirement. ]
46.Protection of action taken under
the Act.- No suit or other legal proceeding
shall lie against the National Housing Bank or any director or any officer or
other employee of the National Housing Bank or any other person authorised by
the National Housing Bank to discharge any functions under this Act for any
loss or damage caused or likely to be caused by anything which is in good faith
done or intended to be done in pursuance of this Act or of any other law or
provision having the force of law.
47.Indemnity of directors.- (1) Every
director shall be indemnified by the National Housing Bank against all losses
and expenses incurred by him in, or in relation to, the discharge of his
duties, except such as are caused by his own willful act or default.
(2) A director shall not be responsible for any other director or for any officer or other employee of the National Housing Bank or for any loss or expenses resulting to the National Housing Bank from the insufficiency or deficiency of the value of, or title to, any property or security acquired or taken on behalf of the National Housing Bank or the insolvency or wrongful act of any debtor or any person under obligation to the National Housing Bank or anything done in good faith in the execution of the duties of his office in relation thereto.
35 [47A. (1) Notwithstanding anything contained in any other law for the
time being in force, where a nomination in respect of any deposit, bonds or
other securities is made with the National Housing Bank in the prescribed
manner, the amount due on such deposits, bonds or securities shall, on the
death of the depositor or holder thereof, vest in, and be payable to, the
nominee subject to any right, title or interest of any other person to such
deposits, bonds or securities.
(2) Any payment made by the National Housing Bank in accordance with the provisions of sub-section (1) shall be a full discharge of its liability in respect of such deposits, bonds or securities.]
36 [48. ……omitted ……..w.e.f. 1st
April,2002]
49.(1) Whoever
in any return, balance sheet, or other document or in any information required
or furnished by or under or for the purposes of any provision of this Act,
wilfully makes a statement which is false in any material particular, knowing
it to be false, or wilfully omits to make a material statement, shall be
punishable with imprisonment for a term which may extend to three years and
shall also be liable to fine.
(2) If any person fails to produce any
book, account or other document, or to furnish any statement or information
which, under the provisions of this Act, it is his duty to produce or furnish,
he shall be punishable with fine which may extend to two thousand rupees in
respect of each offence and in the case of a continuing failure, with an additional
fine which may extend to one hundred rupees for every day during which the
failure continues after conviction for the first such failure.
37 [(2A) If any
person contravenes the provisions of sub-section (1) of section 29A, he
shall be punishable with imprisonment for a term which shall not be less than
one year but which may extend to five years and with fine which shall not be
less than one lakh rupees but which may extend to five lakh rupees.
(2B) If any auditor fails to comply with any direction given or order made by the National Housing Bank under section 33, he shall be punishable with fine which may extend to five thousand rupees.
(2C) Whoever fails to comply with any order made by the authorised officer under sub-section (2) of section 36A, shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to a fine of not less than rupees fifty for every day during which such non-compliance continues; ]
(3) If any person 38[other than an auditor]
–
(a) receives
any deposit in contravention of any direction given or order made under Chapter
V; or
39[(aa) fails to comply with any direction given or order made by the National Housing Bank under any of the provisions of Chapter V; or]
(b) issues any prospectus or advertisement otherwise than in accordance with section 35 or any order made under section 30, as the case may be;
he shall be punishable with
imprisonment for a term which may extend to three years and shall also be
liable to fine which may extend,-
(i) in the
case of a contravention falling under clause (a), to twice the amount of
deposit received; and
(ii) in the case of a contravention falling under clause (b), to twice the amount of the deposit called for by the prospectus or advertisement.
(4) If any other provision of this Act is contravened or if any
default is made in complying with any other requirement of this Act, or of any
order, regulation or direction made or given or condition imposed thereunder,
any person guilty of such contravention or default shall be punishable with
fine which may extend to two thousand rupees and where a contravention or
default is a continuing one, with further fine which may extend to one hundred
rupees for every day, after the first, during which the contravention or
default continues.
50. Offences by companies.- (1) Where an
offence has been committed by a company, every person who, at the time the
offence was committed, was in charge of, and was responsible to, the company
for the conduct of the business of the company, as well as the company, shall
be deemed to be guilty of the offence and shall be liable to be proceeded
against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.- For the purposes of this section-
(a)
"company" means anybody corporate and includes a firm or other
association of individuals; and
(b) "director", in relation to a firm, means a partner in the
firm.
51. Cognizance of offences.- (1) No court shall take cognizance of any offence punishable
under this Act except upon a complaint in writing made by an officer of the
National Housing Bank, generally or specially authorised in writing in this
behalf by the National Housing Bank, and no court other than that of a
Metropolitan Magistrate or a Judicial Magistrate of the first class or a court
superior thereto shall try any such offence.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, a Magistrate may, if he sees reasons so to do, dispense with the personal attendance of the officer of the National Housing Bank filing the complaint but the Magistrate may in his discretion, at any stage of the proceedings, direct the personal attendance of the complainant.
40[52.Application of fine.- A
court imposing fine under the Act may direct that the fine, if realised shall
be applied-
(a) firstly
in, or towards payment of, the cost of the proceedings, and
(b) secondly
for repayment of the deposit to the person to whom repayment of the deposit was
to be made, and on such payment, the liability of the housing finance
institution to make repayment of the deposit shall, to the extent of the amount
paid by the Court, stand discharged.
52A. Power of National Housing Bank
to impose fine.- (1) Notwithstanding anything contained in section 49, if the
contravention or default of the nature referred to in section 49 is committed
by a housing finance institution which is a company, the National Housing Bank
may impose on such institution-
(a) a penalty not exceeding five thousand rupees; or
(b) where the contravention or default is under sub-section (2A)
or clause (a) or clause (aa) of sub-section (3) of section
49, a penalty not exceeding five lakh rupees or twice the amount involved in
such contravention or default, where the amount is quantifiable, whichever is
more; and where such contravention or default is a continuing one, further
penalty which may extend to twenty-five thousand rupees for every day, after
the first, during which the contravention or default continues.
(2) For the purpose of imposing penalty under sub-section (1),
the National Housing Bank shall serve a notice on the housing finance
institution requiring it to show cause why the amount specified in the notice
should not be imposed as a penalty and a reasonable opportunity of being heard
shall also be given to such housing finance institution.
(3) Any penalty imposed by the National Housing Bank under this
section shall be payable within a period of thirty days from the date on which
notice issued by the National Housing Bank demanding payment of the sum is
served on the housing finance institution and, in the event of failure of the
housing finance institution to pay the sum within such period, may be levied on
a direction made by the principal civil court having jurisdiction in the area
where the registered office or the head office of the housing finance
institution is situated:
Provided that no such direction
shall be made, except on an application made by an officer of the National
Housing Bank authorised in this behalf, to the principal civil court.
(4) The court which makes a direction under sub-section (3),
shall issue a certificate specifying the sum payable by the housing finance
institution and every such certificate shall be enforceable in the same manner
as if it were a decree made by the court in a civil suit.
(5) No
complaint shall be filed against any housing finance institution in any court
of law pertaining to any contravention or default in respect of which any
penalty has been imposed by the National Housing Bank under this section.
(6)
Where any complaint has been filed against a housing finance institution in a
court in respect of contravention or default of the nature referred to in
section 49, no proceedings for imposition of penalty against the housing
finance institution shall be taken under this section.]
53.Bankers’ Books Evidence Act 18 of 1891, to apply in relation
to National Housing Bank.-
The Bankers' Books Evidence Act, 1891, shall apply in relation to the National
Housing Bank as if it were a bank as defined in section 2 of that Act.
54. Liquidation of National Housing Bank.- No provisions of law relating to the
winding up of companies shall apply to the National Housing Bank and the
National Housing Bank shall not be placed in liquidation save by order of the
Central Government and in such manner as it may direct.
41[54A.Power to make rules.- (1) The
Central Government may, by notification, make rules to carry out the provisions
of this Act.
(2) Without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:-
(a)
qualifications for appointment as a recovery officer under sub-section (1)
of section 36D;
(b) the
salaries and allowances and other terms and conditions of service of the
officers and other employees of the Appellate Tribunal under sub-section (3)
of section 36M;
(c) the salaries and allowances and
other terms and conditions of service of the Presiding Officers of the
Appellate Tribunal under section 36N; and
(d) the procedure for the investigation
of misbehaviour or incapacity of the Presiding Officers of the Appellate Tribunals
under sub-section (3) of section 36P.]
55.Powers of the Board to make
regulations.- (1) The Board may, with the previous approval of the Reserve
Bank and in consultation with the Central Government, by notification, make
regulations not inconsistent with this Act to provide for all matters for which
provision is necessary or expedient for the purpose of giving effect to the
provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-
(a) the fees
and allowance that may be paid to the directors for attending the meetings of
the Board or its committees under sub-section (5) of section 7;
42 [(aa)
the manner in which directors shall
be elected under clause (ca) of sub-section (1) of section 6; ]
(b) the times
and places at which the Board may meet, and the rules of procedure that may be
followed in regard to the transaction of business under sub-section (1)
of section 11;
(c) the
number of members that the Executive Committee may consist, the functions that
it may discharge and times and places at which it shall meet and the rules of
procedure that it may follow in the transaction of business under section 12;
(d) the manner and terms of issue and redemption of bonds and debentures under clause (a) of sub-section (1) of section 15;
(d) the manner and terms of issue and redemption of bonds and debentures under clause (a) of sub-section (1) of section 15;
(e) the
manner in which and the conditions subject to which the National Housing Bank
may borrow in foreign currency under sub-section (1) of section 16;
(f) the form
in which the statements, information, etc., are to be furnished under section
32;
43[(fa) the form of application to be made under section 36E and
the documents to be annexed to such application;
(fb) the form in which notice of demand is required to be served on the borrower under sub-section (1) of section 36F;
(fc) the manner in which the property shall be transferred under sub- section (2) of section 36G;
(fd) the form in which the appeal can be filed with the Appellate Tribunal under section 36S and the amount of fee required to be deposited with such appeal; ]
(g) the special fund, reserve fund and other funds to be created under sub-section (2) of section 37;
(h) the form and manner in which the balance sheet and accounts shall be prepared and maintained under sub-section (1) of section 38;
(i) the duties and conduct, salaries, allowances and conditions of service of the officers and other members of staff of the National Housing Bank under section 43;
(j) the establishment and maintenance of provident fund and any other fund for the benefit of officers and other members of staff of the National Housing Bank under section 43; and
44[(ja) the manner in which nomination may be made under
sub-section (1) of section 47A.]
(k) any other matter which is to be, or may be, prescribed.
(3) Any regulation which may be made by the Board under this
Act may be made by the Reserve Bank, in consultation with the Central
Government, before the expiry of three months from the date of establishment of
the National Housing Bank, and any regulation so made may be altered and
rescinded by the Board in the exercise of its powers under this Act.
(4) The power to make regulations conferred by this section
shall include the power to give retrospective effect to the regulations or any
of them from a date not earlier than the date of commencement of this Act, but
no retrospective effect shall be given to any regulation so as to prejudicially
affect the interests of any person to whom such regulation may be applicable.
(5)
The Central Government shall cause every 45[rules, regulation or
scheme] made under this Act to be laid, as soon as may be after it
is made, before each House of Parliament, while it is in session, for a total
period of thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately
following the session or the successive session aforesaid, both Houses agree in
making any modification in the 45[rules, regulation or scheme]
or both Houses agree that the 3[rules, regulation or scheme]
should not be made, the 45[rules, regulation or scheme]
shall thereafter have effect only in such modified form or be of no effect, as
the case may be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that 45[rules,
regulation or scheme].
56. Amendment of certain
enactments.- The enactments specified in the
Second Schedule to this Act shall be amended in the manner provided therein and
unless otherwise provided in that Schedule, such amendments shall take effect
on and from the date of establishment of the National Housing Bank under
section 3.
57.
Power to remove difficulties.- If any difficulty arises in giving effect
to the provisions of this Act, the Central Government may, by order, not
inconsistent with the provisions of this Act, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of three years from the commencement of this Act.
