The Tamil Nadu Protection of Interests of Depositors (In Financial establishments) Act 1997 (Act 44/1997) was enacted to protect the deposits made by the public in the Financial Establishments and matters relating thereto. The Act received the assent of the President in August 1997 and came into force on 07.08.1997. The TNPID Protection of Interests of Depositors (In Financial Establishments) Rules, 1997 were also framed under the above act.
"Deposit" means the deposit of money either in one lump sum or by installments made with the Financial Establishment for a fixed period, for interest or for return in any kind or for any service;
"Financial Establishment" means an individual, an association of individuals, a firm or a company registered under the Companies Act, 1956 (Central Act 1 of 1956) carrying on the business of receiving deposits under any scheme or arrangement or in any other manner but does not include a corporation or a co-operative society owned or controlled by any State Government or the Central Government, or a banking company as defined in section 5(c) of the Banking Regulation Act 1949 (Central Act X of 1949).
Under Section 4(1) of the Act, the Government is vested with powers to appoint the Competent Authority to exercise control over the properties attached by the Government.
In exercise of such powers, vide G.O Ms. No 1484, Home Department dated 09.10.1997, the Commissioner of Land Administration was appointed as the Competent Authority under section 4(1) of the Act.
Subsequently, in G.O Ms. No. 250 Home Department dated 21.03.2002 the Additional Commissioner of Land Administration was appointed the Competent Authority (CA) in lieu of the Commissioner of Land Administration.
Further, in G.O.Ms.No. 1049 Home (CTS.IIA) Department dated 26.08.2004, the Government appointed the District Revenue Officers of the districts as Competent Authorities under section 4(1) of the Act in lieu of the Additional Commissioner of Land Administration.
As per G.O (Ms). No. 1697 Home (Courts. IIA) Department Dated: 24.12.1999, a special wing in police department, namely the Economic Offences Wing-II (Financial Institutions) was created to deal with the cases relating to non-banking financial companies and unincorporated financial institutions, and it was ordered that at the district level, the EOW(Financial Institutions) will function under the control of the Superintendent of Police of the district.
In G.O Ms No. 1018, Home (Courts.II) Department, dated 05.07.2007, two special courts were constituted with presiding officers in the cadre of District Judge and with appropriate staff strength, one each at Madurai and Coimbatore, for the exclusive trial of the cases registered under the TNPID Act.
The Government Vide G.O.Ms.No 1027 Home (Courts.VIA) Department dated 20.09.2021, G.O.Ms.No. 1142 Home (Courts.VIA) Department dated 08.10.2021 and G.O. Ms.No 1321 Home (Courts. VIA) Department dated 16.11.2021, last ordered the appointment of law officers/Special Public Prosecutors on three years tenure basis in the TNPID Courts at Madurai, Coimbatore and Chennai respectively.
A person who has been deprived of his money by reason of default made by the financial establishment to return the deposit after the maturity or a person who has failed to get interest on deposit or a person who has failed to get a service for which deposit has been made, can file a complaint.