The Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004
The Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004
This law regulates financial establishments that accept deposits, such as chit funds and money lending firms, creating legal protections for people who invest their savings with them. It applies to any entity that collects money with the promise to return it with interest, excluding banks and government-controlled companies. By establishing a specific authority to oversee compliance and facilitate recovery of deposits, the Act safeguards ordinary citizens from financial fraud. Its main purpose is to ensure depositors can trust these institutions with their hard-earned money and provides recourse in case of mismanagement or dishonest schemes.
- 0. Preamble
- 1. Short title and commencement
- 2. Definitions
- 3. Attachment of properties on default of return of deposits
- 6. Duties and powers of Competent Authority
- 7. Assessment of assets and deposit liabilities
- 8. Report by the Competent Authority
- 9. Fraudulent default by Financial Establishment
- 9A. Cognizance of offence and power to club cases
- 10. Special Court
- 11. Powers of the Special Court regarding realization of assets and payment to depositors
- 12. Powers of Special Court regarding attachment
- 13. Attachment of property of malafide transferees
- 14. Security in lieu of attachment
- 15. Administration of property attached
- 16. Appeal
- 17. Special Public Prosecutor
- 18. Procedure and powers of Special Court regarding offences
- 19. Act to override other laws
- 20. Protection of action taken in good faith
- 21. Power to make rules
- 22. Power to remove difficulties
PDF: pending for this language.