Section 28 of BUDS Act : Section 28: Offences To Be Cognizable And Non-Bailable

Explanation using Example

Imagine a situation where Mr. Sharma runs a company that offers investment opportunities with high returns. He promises investors that their money will double in a year without any clear explanation of how the investments work. This raises suspicions, and an investigation reveals that Mr. Sharma's company is not registered with any regulatory authority and is collecting deposits illegally. Under the Banning of Unregulated Deposit Schemes Act, 2019, Mr. Sharma's actions constitute an offence. According to Section 28 of the Act, when the police learn about this, they can immediately arrest Mr. Sharma without a warrant, as the offence is cognizable. Furthermore, Mr. Sharma cannot get bail easily because the offence is non-bailable, indicating the seriousness with which the law treats such unregulated deposit schemes.