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THE SPECIFIED BANK NOTES (CESSATION OF LIABILITIES) ACT, 2017
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ARRANGEMENT OF SECTIONS
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SECTIONS
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THE SPECIFIED BANK NOTES (CESSATION OF LIABILITIES) ACT, 2017 ACT NO. 2 OF 2017
[27th February, 2017.]
An Act to provide in the public interest for the cessation of liabilities on the specified bank notes and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:—
(2) It shall be deemed to have come into force on the 31st day of December, 2016.
(b) “grace period” means the period to be specified by the Central Government, by notification, during which the specified bank notes can be deposited in accordance with this Act;
(c) “notification” means a notification published in the Official Gazette;
(d) “Reserve Bank” means the Reserve Bank of India constituted by the Central Government under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934);
(e) “specified bank note” means a bank note of the denominational value of five hundred rupees or one thousand rupees of the series existing on or before the 8th day of November, 2016.
(2) The words and expressions used and not defined in this Act but defined in the Reserve Bank of India Act, 1934 (2 of 1934) or the Banking Regulation Act, 1949 (10 of 1949) shall have the meanings respectively assigned to them in those Acts.
(i) a citizen of India who makes a declaration that he was outside India between the 9th November, 2016 to 30th December, 2016, subject to such conditions as may be specified, by notification, by the Central Government; or
(ii) such class of persons and for such reasons as may be specified by notification, by the Central Government.
(2) The Reserve Bank may, if satisfied, after making such verifications as it may consider necessary that the reasons for failure to deposit the notes within the period specified in the notification referred to in section 3, are genuine, credit the value of the notes in his Know Your Customer compliant bank account in such manner as may be specified by it.
(3) Any person, aggrieved by the refusal of the Reserve Bank to credit the value of the notes under sub-section (2), may make a representation to the Central Board of the Reserve Bank within fourteen days of the communication of such refusal to him.
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Explanation.—For the purposes of this section, the expression “Know Your Customer compliant bank account” means the account which complies with the conditions specified in the regulations made by the Reserve Bank under the Banking Regulation Act, 1949 (10 of 1949).
Provided that nothing contained in this section shall prohibit the holding of specified bank notes—
(a) by any person—
(i) up to the expiry of the grace period; or
(ii) after the expiry of the grace period,—
(A) not more than ten notes in total, irrespective of the denomination; or
(B) not more than twenty-five notes for the purposes of study, research or numismatics;
(b) by the Reserve Bank or its agencies, or any other person authorised by the Reserve Bank;
(c) by any person on the direction of a court in relation to any case pending in the court.
1[(d) by the law enforcement agencies, such as the Central Board of Direct Taxes, Central Board of Indirect Taxes and Enforcement Directorate on production of the documents authorising such seizure or confiscation, as the case may be.]
Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention or default was committed without his knowledge or that he had exercised all due diligence to prevent the contravention or default.
(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 same was committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary, or other officer or employee of the company, such director, manager, secretary, other officer or employee shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purpose of this section,—
(a) “a company” means any body corporate and includes a firm, a trust, a co-operative society and other association of individuals;
(b) “director”, in relation to a firm or trust, means a partner in the firm or a beneficiary in the trust.
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Provided that no such order shall be made under this section after the expiry of a period of two years from the date of commencement of this Act.
(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.
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