Manner of provisional attachment and administration of attached property.

1. (1) Where the

Competent Authority have reason to believe that any deposit taker is soliciting deposits in

contravention of section 3 of the Act, the Competent Authority shall pass an interim order of the provisional attachment of the deposits held by the deposit taker and the money or other property acquired either in the name of the deposit taker or in the name of any other person on behalf of the deposit taker under sub-section (3) of section 7 of the Act in Form No.1. to that effect mentioning the details of the property to be attached .

1. (2) A copy of the order of provisional attachment shall be served to the owner of the property or any person who claims to be in possession of the property or any other person who has an interest in the said property.
2. (3) After passing the provisional attachment order under sub-rule (1), the Competent Authority shall direct the officers appointed under sub-section (2) of section 7 of the Act, to prepare and maintain details of the properties so attached and the expenditure incurred in this regard in Form No. 2.
3. (4) The officers appointed under sub-section (2) of section 7 of the Act, may seek assistance of Police, other officials of the Government, Central Government, financial institutions, society or body for the purpose of taking possession of the property so attached.
4. (5) The order of provisional attachment shall be published in a leading newspaper both in Malayalam and in English having wide circulation in the area or jurisdiction in which the deposit taker is located.
5. (6) The Competent Authority shall send a copy of the order of provisional attachment to the officials concerned of Revenue, Tax, or any other officials required in this regard to place incumberance on the said movable or immovable property, which shall be removed only on the written instruction from the Competent Authority to that effect.
6. (7) Where the Competent Authority is not able to serve the order of provisional attachment to a person specified in sub-rule (2), then such person shall be deemed to be served the order by the publication of the order in the manner prescribed under sub- rule (5).
7. (8) The officers appointed under sub-section (2) of section 7 of the Act, shall take possession of the immovable property by affixing the order of provisional attachment at a conspicuous place of such immovable property.
8. (9) Where the property to be attached is a movable property, the officers appointed under sub-section (2) of section 7 shall take actual possession of such property and retain it in his custody.
9. (10) The officers appointed under sub-section (2) of section 7 shall assess assets and liabilities of the deposit taker and prepare a complete record of depositors from whom the deposit taker has collected deposits pursuant to an Unregulated Deposit Scheme.
10. (11) The officers appointed under sub-section (2) of section 7, may appoint a valuer for the purpose of assessing assets and liabilities of the deposit taker under sub-rule(10).
11. (12) Where any property of which possession has been taken is of a perishable or hazardous nature, the officers appointed under sub-section (2) of section 7 of the Act, may dispose of such property keeping in mind the best interest of the depositors.
12. (13) The notice details and proceeds of sale under sub-rule (12) shall also be entered separately in Form 3.