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 in 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 2*** receive or take on deputation any officer or other employee
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.
3
[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 4
[National Housing Bank or the Reserve Bank,
as the case may be,] 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
4
[National Housing Bank or the Reserve Bank, as the case may be,] to divulge such information.
1. Subs. by Act 15 of 2000, s. 21, for “three months” (w.e.f. 12-6-2000).
2. The words, figures and letters “, without prejudice to the provisions of section 54AA of the Reserve Bank of India Act, 1934
(2 of 1934),” Omitted by Act 13 of 2018, s. 175 (w.e.f. 1-6-2018).
3. Ins. by Act 15 of 2000. s. 22 (w.e.f. 12-6-2000).
4. Subs. by Act 23 of 2019, s. 168, for “National Housing Bank” (w.e.f. 9-8-2019).
30
(2) Every director, member of a committee, auditor, adviser, 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.
1
[(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
disqualified to be a director or that there was any other defect in his appointment.
2
[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
3
[Companies Act, 2013 (18 of 2013)] 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 director-ships, 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;
(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
4
[the National Housing Bank or the Reserve Bank] or any director or any officer or other employee of
4
[the National Housing Bank or the Reserve Bank] or any other person authorised by 4
[the National
Housing Bank or the Reserve 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 wilful 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 of anything done in good faith in the execution of the duties
of his office in relation thereto.
1. Ins. by Act 30 of 2005, s. 34 and Schedule (w.e.f. 14-12-2006).
2. Ins. by Act 15 of 2000, s. 23 (w.e.f. 12-6-2000).
3. Subs. by Act 13 of 2018, s. 176, for “Companies Act, 1956 (1 of 1956)” (w.e.f. 1-6-2018).
4. Subs. by Act 23 of 2019, s. 169, for “the National Housing Bank” (w.e.f. 9-8-2019).
31
1
[47A. Nomination in respect of deposits, bonds, etc.—(1) Notwithstanding anything contained in
any other law for the lime 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.]
48. [Explanation from tax on income.]—Omitted by the Finance Act, 2001 (14 of 2001), s. 141
(w.e.f. 1-4-2002).
49. Penalties.—(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* * * * *
3
[(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.
2* * * * *
(2C) Whoever fails to comply with 4
[any order made by the National Company Law Tribunal] 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 1
[other than an auditor]—
(a) receives any deposit in contravention of any direction given or order made under
Chapter V; or
5* * * * *
(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 the 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.
6* * * * *
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:
1. Ins. by Act 15 of 2000, s. 24 (w.e.f. 12-6-2000).
2. Sub-sections (2) and (2B) omitted by Act 18 of 2023, s. 2 and Schedule (w.e.f. 22-01-2024).
3. Ins. by s. 25, ibid. (w.e.f. 12-6-2000).
4. Subs. by s. 170, ibid., for “any order made by the authorised officer” (w.e.f. 9-8-2019).
5. Clause (aa) omitted by Act 18 of 2023, s. 2 and Schedule (w.e.f. 22-1-2024).
6. Sub-section (4) omitted by s. 2 and Schedule, ibid., (w.e.f. 22-1-2024).
32
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 any body 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 1
[the National Housing Bank or the
Reserve Bank] generally or specially authorised in writing in this behalf by 1
[the National Housing Bank
or the Reserve 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 (2 of 1974), a
Magistrate may, if he sees reason so to do, dispense with the personal attendance of the officer of 1
[the
National Housing Bank or the Reserve Bank] filing the complaint but the Magistrate may in his
discretion, at any stage of the proceedings, direct the personal attendance of the complainant.
2
[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.
3
[52A. Power of National Housing Bank and Reserve Bank to impose 4
[penalty].—(1)
Notwithstanding anything contained in section 49, if the contravention or default of the nature referred to
in the said section is committed by a housing finance institution which is a company, the National
Housing Bank or the Reserve Bank, as the case may be, may impose on such company—
(a) a penalty not exceeding 5
[twenty-five thousand]; or
(b) where the contravention or default is under sub-section (2A) or clause (a) 6*** of
sub-section (3) of that section, a penalty not exceeding 7
[ten 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 8
[one
lakh] rupees for every day, after the first, during which the contravention or default continues.
9
[(1A) If any person or housing finance institution which is a company fails to produce any book,
account or other document, or to furnish any statement or information, which, under the provisions of this
Act, is the duty of such person or housing finance institution to produce or furnish, the National Housing
1. Subs. by Act 23 of 2019, s. 171, for “the National Housing Bank,” (w.e.f. 9-8-2019).
2. Subs. by Act 15 of 2000, s. 26, for section 52 (w.e.f. 12-6-2000).
3. Subs. by Act 23 of 2019, s. 172, for section 52A (w.e.f. 9-8-2019).
4. Subs. by Act 18 of 2023, s. 2 and Schedule, for “fine” (w.e.f. 22-1-2024).
5. Subs. by s. 2 and Schedule, ibid., for “five thousand” (w.e.f. 22-1-2024).
6. The word, brackets and letters “or clause (aa)” omitted by s. 2 and Schedule, ibid., (w.e.f. 22-1-2024).
7. Subs. by s. 2 and Schedule, ibid., for “five lakh” (w.e.f. 22-1-2024).
8. Subs. by s. 2 and Schedule, ibid., for “twenty-five thousand” (w.e.f. 22-1-2024).
9. Ins. by s. 2 and Schedule, ibid., (w.e.f. 22-1-2024).
33
Bank or the Reserve Bank, as the case may be, may impose on such person or housing finance institution,
a penalty not exceeding one lakh fifty thousand rupees in respect of each contravention or default and
where such contravention or default is a continuing one, further penalty which may extend to seven
thousand five hundred rupees for every day, after the first, during which the contravention or default
continues.
(1B) If any auditor fails to comply with any direction given or order made by the National Housing
Bank or the Reserve Bank under section 33, the National Housing Bank or the Reserve Bank, as the case
may be, may impose on such person a penalty not exceeding ten lakh rupees.
(1C) If any person (other than an auditor) or housing finance institution which is a company fails to
comply with any direction given or order made by the National Housing Bank or the Reserve Bank under
any of the provisions of Chapter V, the National Housing Bank or the Reserve Bank, as the case may be,
may impose on such person or housing finance institution, a penalty not exceeding ten 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
one lakh rupees for every day, after the first, during which the contravention or default continues.
(1D) 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, the National Housing Bank or the Reserve Bank, as the case may be, may impose on any
person or housing finance institution which is a company, guilty of such contravention or default, a
penalty not exceeding one lakh rupees in respect of each contravention or default and where such
contravention or default is a continuing one, further penalty which may extend to ten thousand rupees for
every day, after the first, during which the contravention or default continues.]
(2) For the purpose of imposing penalty under 1
[this section], the National Housing Bank or the
Reserve Bank, as the case may be, shall serve a notice on the 2
[person or housing finance institution]
which is a company 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 2
[person or
housing finance institution.]
(3) Any penalty imposed by the National Housing Bank or the Reserve Bank, as the case may be,
under this section shall be payable within a period of thirty days from the date on which notice issued by
the National Housing Bank or the Reserve Bank, as the case may be, demanding payment of the sum is
3
[served on the person or housing finance institution] which is a company and, in the event of 4
[failure of
such person or 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 5
[the area where such person ordinarily
resides or, as the case may be, the registered office] or the head office of such 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 or the Reserve Bank, as the case may be, 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 6
[person or] housing finance institution which is a company 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 which is a company 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 or the Reserve Bank, as the case may be, under this section.
1. Subs. by Act 18 of 2023, s. 2 and Schedule, for “sub-section (1)” (w.e.f. 22-1-2024).
2. Subs. by s. 2 and Schedule, ibid., for “housing finance institution” (w.e.f. 22-1-2024).
3. Subs. by s. 2 and Schedule, ibid., for “served on the housing finance institution” (w.e.f. 22-1-2024).
4. Subs. by s. 2 and Schedule, ibid., for “failure of such housing finance institution” (w.e.f. 22-1-2024).
5. Subs. by s. 2 and Schedule, ibid., for “the area where the registered office” (w.e.f. 22-1-2024).
6. Ins. by s. 2 and Schedule, ibid., (w.e.f. 22-1-2024).
34
(6) Where any complaint has been filed against a housing finance institution which is a company in a
court in respect of contravention or default of the nature referred to in section 49, no proceedings for
imposition of penalty against such 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 provision 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.
1
[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. Power of the Board to make regulations.—(1) The Board may, with the previous approval of
2*** 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:—
(a) the fees and allowances that may be paid to the directors for attending the meetings of the
Board or its committees under sub-section (5) of section 7;
3
[(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;
(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., is to be furnished under section 32;
3
[(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;
1. Ins. by Act 15 of 2000, s. 27 (w.e.f. 12-6-2000).
2. The words “the Reserve Bank and in consultation with” omitted by Act 13 of 2018, s. 177 (w.e.f. 1-6-2018).
3. Ins. by Act 15 of 2000, s. 28 (w.e.f. 12-6-2000).
35
(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
1
[(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 2*** 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 3
[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 sessions
aforesaid, both Houses agree in making any modification in the 3
[rules, regulation or scheme] or both
Houses agree that the 3
[rules, regulation or scheme] should not be made, the 3
[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 3
[rules, regulation or scheme.]
56. [Amendment of certain enactments.]—Rep. by Repealing and Amending Act 2001, (30 of 2001),
s. 2 and the First Schedule (w.e.f. 3-9-2001).
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.