Revenue Department, Government of Karnataka
The Karnataka Protection of Interest of
Depositors in Financial Establishments Act, 2004, is enforced by the Revenue
Department, Government of Karnataka through the District Commissioners /
Under Section 3 of the Act,
the Government or the District Magistrates in their respective jurisdiction,
suo moto or on receipt of any complaint may cause investigation of a complaint
or fraudulent transaction referred to in this section.
If the Government is satisfied that any Financial
Establishment has failed - (a) to return the deposit after maturity or on
demand by depositor: or (b) to pay interest or other assured benefit: or (c) to
provide the service against such deposit; or: Where the
Government has reason to believe that any Financial Establishment is acting in
and detrimental to the interest of the depositors with an intention to defraud
them; or Where the
Government is satisfied that such Financial Establishment is not likely to
return the deposits or make payment of interest or other benefits assured or to
provide the services against which the deposit is received, the Government may, in order to protect the interests of the depositors
of such Financial Establishments, after recording reasons in writing, issue an
order by publishing it in the official gazette, attaching the money or property
believed to have been acquired by such financial establishment either in its
own name or in the name of any other person from and out of the deposits
collected by the financial establishments.
The Government shall, by notification, appoint an officer not below the
rank of an Assistant Commissioner to be the Competent Authority for the purpose
of this Act.
For further details, please see
the Act in the section Important Legislation.