Sections 33, 34, 35 and 36 of the Banning of Unregulated Deposit Schemes Act, 2019
Sections 33 to 36 form part of Chapter VIII, "Miscellaneous", of the Banning of Unregulated Deposit Schemes Act, 2019 ("BUDS Act"). They deal with retraction of advertisements promoting an Unregulated Deposit Scheme, the overriding effect of the Act, the continued application of other laws, and protection for specified governmental action taken in good faith.
- Section 33: permits the appropriate Government to require a newspaper or other publication to publish a full and fair retraction of material promoting an Unregulated Deposit Scheme.
- Section 34: gives the BUDS Act overriding effect over inconsistent laws, unless the Act itself expressly provides otherwise.
- Section 35: clarifies that the BUDS Act operates in addition to other laws and does not generally exclude them.
- Section 36: protects the appropriate Government, the Competent Authority and specified officers from proceedings for acts done or intended in good faith under the Act or rules.
Section 33 - Publication of advertisement of Unregulated Deposit Scheme
Statutory text: Where any newspaper or other publication of any nature contains any statement, information or advertisement promoting, soliciting deposits for, or inducing any person to become a member of any Unregulated Deposit Scheme, the appropriate Government may direct such newspaper or publication to publish a full and fair retraction, free of cost, in the same manner and in the same position in such newspaper or publication as may be prescribed.
Section 33 is a corrective-publication provision. It does not merely address a deposit taker; it allows the appropriate Government to require the newspaper or other publication carrying the promotional material to issue a retraction. The object is to counter the same publicity through which the unregulated scheme was promoted.
Rule 11: how the retraction must be published
Rule 11 of the Banning of Unregulated Deposit Schemes Rules, 2020 supplements Section 33. Under the Rule, the appropriate Government may direct the owner of a print or electronic publication to publish a full and fair retraction unequivocally withdrawing the earlier offer, promotion or inducement. The retraction must be as prominent as the original material, use a format and font that immediately attracts attention, and be published free of cost within two days from the Government's direction. The Government may require republication where the first retraction does not sufficiently engage readers' attention.
Section 34 - Act to have overriding effect
Statutory text: Save as otherwise expressly provided in this Act, the provisions of this Act shall have effect notwithstanding anything contained in any other law for the time being in force, including any law made by any State or Union territory.
Section 34 is a non-obstante provision. Where another law is inconsistent with the BUDS Act on a matter governed by the Act, Section 34 gives the BUDS Act overriding effect, subject to any express provision in the BUDS Act itself to the contrary.
The section expressly extends this priority to laws made by a State or Union territory. Its operation must, however, be read with Section 35, which preserves the application of other laws where they can operate alongside the BUDS Act.
Section 35 - Application of other laws not barred
Statutory text: The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.
Section 35 is a saving provision. It confirms that the BUDS Act is generally cumulative: remedies, liabilities, regulatory requirements and proceedings available under other applicable laws are not displaced merely because the BUDS Act also applies.
How Sections 34 and 35 work together
Sections 34 and 35 are complementary. Section 35 allows other laws to continue to operate alongside the BUDS Act. Section 34 addresses the narrower situation of inconsistency: where simultaneous operation is not possible because another law conflicts with the BUDS Act, the BUDS Act prevails, unless it expressly provides otherwise.
Section 36 - Protection of action taken in good faith
Statutory text: No suit, prosecution or other legal proceedings shall lie against the appropriate Government or the Competent Authority or any officer of the appropriate Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.
Section 36 protects the appropriate Government, the Competent Authority and officers of the appropriate Government against suits, prosecutions and other legal proceedings in respect of acts done, or intended to be done, in good faith under the BUDS Act or rules made under it.
Key definitions relevant to Sections 33-36
Unregulated Deposit Scheme - Section 2(17): A scheme or arrangement under which deposits are accepted or solicited by a deposit taker by way of business and which is not a Regulated Deposit Scheme specified in the First Schedule.
Appropriate Government - Section 2(1): The Government identified by the Act according to the relevant State or Union territory. For a State, it is the State Government; the Act separately specifies the position for Union territories.
Competent Authority - Section 2(3) read with Section 7: An Authority appointed by the appropriate Government under Section 7 of the BUDS Act.
Official legal resources
For authoritative verification, consult the official text of the Banning of Unregulated Deposit Schemes Act, 2019 on India Code and the Banning of Unregulated Deposit Schemes Rules, 2020 issued by the Department of Financial Services, Ministry of Finance.
Last reviewed: 14 September 2026.