LexThe KARNATAKA APPOINTMENT OF RECOVERY COMMISSIONER FOR SEIZURE AND ATTACHMENT OF PROPERTY OF ILLEGAL MINING AND PROCEEDS OF ACT, 2025
Karnataka · state statute
Open in Lexace · Ask the AI about this actKARNATAKA ACT NO. 45 OF 2025
THE KARNATAKA APPOINTMENT OF RECOVERY COMMISSIONER FOR
SEIZURE AND ATTACHMENT OF PROPERTY OF ILLEGAL MINING AND
PROCEEDS OF ACT, 2025
Arrangement of Sections
Sections:
1. Short title, commencement and application
2. Definitions
3. Appointment of Recovery Commissioner
4. Powers and duties of Recovery Commissioner
5. Recovery Commissioner to have powers of a civil court
6. Power of entry and search
7. Provisional attachment of property
8. Confirmation of attachment or forfeiture
9. Absolute attachment
10. Forfeiture of property
11. Appeal
12. Management of attached property
13. Protection of action taken in good faith
14. Power to make rules
15. Act not in derogation of other laws
16. Transitory provisions
17. Transfer of pending cases
18. Power to remove difficulty
STATEMENT OF OBJECTS AND REASONS
Act 45 of 2025 :- It is considered necessary to provide for the
appointment of Recovery Commissioner for seizure, attachment, forfeiture of
properties derived from illegal mining activities including multiple transactions
involving myriad number of lessees, transporters, ex porters, stock holders,
purchasers and other intermediaries, organized crime, cohesive conspiracy and
proceeds of crime in the State of Karnataka.
Whereas the Hon'ble Supreme Court in its Order dated: 16.9.2013 in an
interlocutory application number 189 o f writ petition 562/2009 has permitted
the CBI to refer the matters with respect to the exporters who had exported less
than 50000 MTS and were not enquired into in the preliminary enquiry and
also has permitted the CBI to refer the cases of exporters who had exported
less than 50000 MTS of iron ore without valid permit to refer to the
Government of Karnataka for taking for the necessary action under the
relevant laws as recommended by the Central Empowered committee vide
letter, dated: 5.9.2012. And in pur suant to the cabinet decision taken on
17.10.2013, issues relating to the illegal exports of iron ore through nine ports
were referred to CBI vide G.O No: HD 98 CID 2013, dated: 18.12.2013.
Accordingly the CBI has furnished intermittent details of the preliminary
enquiries, charge sheeted cases registered by various branches of the CBI.
Hence, the Bill.
[L.A. Bill No. 64 of 2025, File No. SAMVYASHAE 71 SHASANA 2025]
[Entries 5, 23 and 64 of List I I of the Seventh Schedu le to the Constitution of
India]
[Published in Karnataka Gazette Extra -ordinary No.5 49 in part -IVA
dated:09.09.2025]
KARNATAKA ACT NO. 45 OF 2025
(First published in the Karnataka Gazette Extra-ordinary on the 9th day of September, 2025)
THE KARNATAKA APPOINTMENT OF RECOVERY COMMISSIONER FOR
SEIZURE AND ATTACHMENT OF PROPERTY OF ILLEGAL MINING AND
PROCEEDS OF ACT, 2025
(Received the assent of the Governor on the 9th day of September, 2025)
An Act to provide for the appointment of Recovery Commissioner for
seizure, attachment , forfeiture of properties derived from illegal mining
activities including multiple transactions involving myriad number of lessees,
transporters, exporters, stock holders, purchasers and other intermediaries,
organized crime, cohesive conspiracy and proc eeds of crime in the State of
Karnataka.
Whereas, the Hon’ble Supreme Court in its Order dated: 16.9.2013 in
an interlocutory application number 189 of writ petition 562/2009 has
permitted the Central Bureau of Investigation (CBI) to refer the matters with
respect to the exporters who had exported less than 50000 MT S and were not
enquired into in the preliminary enquiry and also has permitted the Central
Bureau of Investigation (CBI) to refer the cases of exporters who had exported
less than 50000 MTS of iron ore without valid permit to refer to the
Government of Kar nataka for taking necessary action under the relevant laws
as recommended by the Central Empowered committee vide letter, dated:
5.9.2012.
And whereas, in pursuant to the cabinet decision taken on 17.10.2013,
issues relating to the illegal exports of iron ore through nine ports were referred
to CBI vide G.O No: HD 98 CID 2013, dated:18.12.2013. Accordingly the CBI
has furnished intermittent details of the preliminary enquiries, charge sheeted
cases registered by various branches of the Central Bureau of Inv estigation
(CBI).
And whereas, it is expedient to provide for the appointment of Recovery
Commissioner for seizure, attachment and forfeiture of properties derived from
illegal mining activities including multiple transactions involving myriad
number of l essees, transporters, exporters, stock holders, purchasers and
other intermediaries, organized crime, cohesive conspiracy and proceeds of
crime in the State of Karnataka and for matters connected therewith or
incidental thereto.
Be it enacted by the Karnat aka State Legislature in the seventy sixth
year of the Republic of India as follows:-
1. Short title, commencement and application. - (1) This Act may be
called the Karnataka Appointment of Recovery Commissioner for seizure and
attachment of property of Illegal Mining and proceeds of crime Act, 2025.
(2) It shall come into force from such date as the State Government
may, by notification, appoint.
(3) The provisions of this Act shall be applicable to all the cases
enumerated in Government order number CI 282 MM 2011(p), dated:
22.11.2013, 06.06.2017, 21.03.2018, 22.11.2024 and to such other cases as
may be notified by the State Government, from time to time.
2. Definitions.- (1) In this Act, unless the context otherwise requires,-
(a) "attachment" means t he prohibition of transfer, disposal, or
movement of property by an order of the Recovery Commissioner;
(b) "forfeiture" means the permanent deprivation of rights in property by
order of the Recovery Commissioner;
(c) "illegal mining" and “illegal mining a ctivity” means illegal extraction,
removal or transportation of minerals and illegal mining activities including
multiple transactions involving myriad number of lessees, transporters,
exporters, stock holders, purchasers and other intermediaries, organized crime,
cohesive conspiracy in contravention of the provisions of the Mines and
Minerals (Development and Regulation) Act, 1957 (Central Act 67 of 1957) or
relevant Laws and rules made there under;
(d) “prescribed” means prescribed by rules made under this Act;
(e) "property" includes any movable or immovable property, money,
valuable security or other assets derived or obtained, directly or indirectly, from
illegal mining activities including multiple transactions involving myriad
number of lessees, transporters, exporters, stock holders, purchaser and other
intermediaries, organized crime, cohesive conspiracy;
(f)“Recovery Commissioner” means the officer appointed under section
3; and
(g) “State Government” means the Government of Karnataka.
(2) All other words and expression used but not defined shall have the
same meaning as assigned to them in the Mines and Minerals (Development
and Regulation) Act, 1957 (Central Act 67 of 1957) or other relevant Laws and
rules made thereunder.
3. Appointment of Recove ry Commissioner. - (1) The State
Government shall, by notification, appoint a serving or retired officer not below
the rank of Additional Chief Secretary to Government to be the Recovery
Commissioner for the purpose of supervising recovery proceedings under this
Act.
(2) The Recovery Commissioner shall have jurisdiction over the entire
State or such area as may be specified in the notification.
(3) The Recovery Commissioner shall supervise, coordinate, and control
the functions of Recovery Officers appointed under this Act.
4. Powers and duties of Recovery Commissioner. - The Recovery
Commissioner shall exercise and perform the following powers and duties,
namely:-
(a) exercise overall supervisory jurisdiction over attachment, seizure,
and recovery operation;
(b) issue directions to subordinate officers for timely enforcement of
attachment or forfeiture order;
(c) receive complaints from individuals and persons and examine the
person or persons making the affidavit accompanying the complaint;
(d) examine the records and reports submitted by subordinate officer;
(e) hear administrative appeals against actions taken by subordinate
officer;
(f) recommend further legal or criminal action where necessary; and
(g) submit periodic reports to the State Government.
5. Recovery Commissioner to have powers of a civil court. - In
exercising the functions conferred on the Recovery Commissioner under this
Act, he shall have all the powers of a civil court, while trying a suit under the
Code of Civil Procedure, 1908 (Centra l 5 of 1908) in respect of the following
matters, namely:-
(a) summoning and enforcing the attendance of any person and
examining him on oath;
(b) requiring the discovery and production of any document;
(c) proof of facts by affidavits;
(d) appointing co mmissions for examination of witness or documents;
and
(e) any other matter, as may be prescribed.
6. Power of entry and search. - (1) The Recovery Commissioner or any
officer authorized by him may, after recording reasons in writing and with due
authorization,-
(a) enter any premises or place where any property liable for seizure is
kept; and
(b) conduct search for documents, records, or assets relevant to
recovery.
(2) The search shall be conducted in accordance with the provisions of
the Bharatiya Nagarik Suraksha Sanhita, 2023 (Central Act 46 of 2023)and the
Criminal Law amendment Ordinance, 1944 relating to search and seizure.
7. Provisional attachment of property. - (1) Upon reasonable belief
that property was acquired through illegal mining, the Recov ery Commissioner
may provisionally attach such property:
Provided that, in case of property acquired through illegal mining is
situated outside the State of Karnataka, the Recovery Commissioner may do so
after obtaining prior approval from the State Government.
(2) The provisional attachment shall remain in force for a period of sixty
days unless confirmed or vacated by the Recovery Commissioner.
8. Confirmation of attachment or forfeiture. - All orders of
attachment and forfeiture passed by a Recovery Comm issioner shall be
submitted for confirmation by the State Government.
9. Absolute attachment. - (1) On receipt of an application under the
provisions of this Act, the Recovery Commissioner shall, unless for reasons to
be recorded in writing, is of the opinion that,-
(i) there exist prima facie grounds to believe that the person in respect
of whom the application is made has acquired property through illegal mining;
or
(ii) has procured thereby any money or other property through illegal
mining
-shall pass without delay, an absolute order attaching the money or
other property alleged to have been so procured, including the property
alienated to the family members or any other person or if it transpires that
such money or other property is not available for attachment, such other
property of the said person of equivalent value, as he may think fit:
Provided that the Recovery Commissioner may, if he thinks fit before
passing such order, and shall before refusing to pass such order, examine the
person or persons making the affidavit accompanying the application.
(2) At the same time as The Recovery Commissioner passes an order
under sub -section (1), he shall issue to the person whose money or other
property is being attached, a notice, accompanied by copies of the order, the
application and affidavits and of the evidence, if any, recorded, calling upon
him to show cause on a date to be specified in the notice, why the order of
attachment shall not be made absolute.
(3) The Recovery Commissioner shall also issue , copies of the
documents accompanying the notice under sub -section (2), to all persons
represented to him as having or being likely to claim, any interest or title in the
property of the person to whom notice is issued under the said sub -section
calling upon each such person to appear on the same date as specified in the
notice under the said sub -section and make objection if he so desires, to the
attachment of the property or any portion thereof on the ground that he has an
interest in such property or portion thereof.
(4) Any person claiming an interest in the attached property or any
portion thereof may, notwithstanding that no notice has been served upon him
under this section, make an objection as aforesaid to the Recovery
Commissioner at any time befo re an order is passed under sub -section (1) or
sub-section (3), as the case may be.
10. Forfeiture of property. - Upon conviction for an offence relating to
illegal mining, the Recovery Commissioner may order the forfeiture of any
property proven to be acquired through such means.
11. Appeal.- An appeal against any order of the Recovery Commissioner
under this Act shall lie before the authority, as may be notified by the State
Government, not below the rank of Chief Secretary to Government, within sixty
days from the date of such order.
12. Management of attached property. - (1) The State Government
may appoint an Administrator to manage the attached property.
(2) The Administrator shall maintain proper accounts, inventories, and
comply with audits.
13. Protection of action taken in good faith. - No suit, prosecution or
other legal proceeding shall lie against the Government or any officer appointed
under the provisions of this Act, for acts done in good faith in pursuance of this
Act.
14. Power to mak e rules. - (1)The State Government may, by
notification, make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
powers, such rules may provide for,-
(i) procedures for seizure, attachment and forfeiture;
(ii) formats for registers, notices and reports;
(iii) time limits and procedures for appeals;
(iv) appointment of Recovery Officers and staff, as may deem fit; and
(v) procedure of disposal or auction of forfeited property or absolutely
attached property.
(3) Every rule made under this Act shall be laid, as soon as may be,
after it is made, before each House of the State Legislature, 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 in
which it is so laid or the session or sessions immediately following, both
Houses agree in making any modification in the r ule or both Houses agree that
the rule shall not be made, the rule 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 or omitted to be done under that rule.
15. Act not in derogation of other laws. - The provisions of this Act
shall be in addition to, and not in derogation of, any other law for the time
being in force.
16. Transitory provisions.- (1)Notwithstanding anything contained in
this Act, until the Recovery Commissioner is formally appointed under section
3, the State Government may, by order published in the official Gazette,
designate existing officers of the Revenue Departm ent, Police Department or
the Department of Mines and Geology to discharge the functions of the
Recovery Commissioner for a period not exceeding six months from the date of
commencement of this Act.
(2) Any action taken, orders issued or proceedings initia ted by officers
so designated shall deemed to have been validly taken or done under the
authority of this Act.
(3) The State Government shall ensure that the permanent institutional
framework under this Act, including the appointment of the Recovery
Commissioner, is established within six months from the date of
commencement of this Act.
(4) The designated officers shall hand over all records, inventories, and
pending matters to the duly appointed Recovery Commissioner immediately
upon their assumption of office.
17. Transfer of pending cases .- From the date of commencement of
this Act all cases pending before any court in respect of seizure, attachment of
illegal mining activities, including properties derived from illegal mining
activities including multi ple transactions involving myriad number of lessees,
transporters, exporters, stock holders, purchasers and other intermediaries,
organized crime, cohesive conspiracy shall be transferred to the Recovery
Commissioner.
18. Power to remove difficulty.- If any difficulty arises in giving effect
to the provisions of this Act, the State Government may, by an order, published
in the official Gazette, make such provisions not inconsistent with the
provisions of this Act, which appear to it to be necessary or exp edient for the
purposes of removing the difficulty:
Provided that, no such order shall be made under this section after the
expiry of the period of two years from the date of commencement of this Act.
The above translation of ಕರ್ನಾಟಕ ಅಕ ರ ಮ ಗಣಿಗಾರಿಕೆ ಮತ್ತ ು ಅರಾಧದ
ಉತ್ಪ ತ್ತ ು ಗಳಿಂದಾದ ಸವ ತ್ ು ನ್ನು ವಶಡಿಸಿಕೊಳ್ಳು ವುದಕ್ಕಾ ಗಿ ಮತ್ತ ು ಜಪ್ತ ು ಗಾಗಿ ವಸೂಲಾತ್ತ ಆಯುಕ ು ರ
ನೇಮಕ್ಕತ್ತ ಅಧಿನಿಯಮ, 2025 ( 2025ರ ಕರ್ನಾಟಕ ಅಧಿನಿಯಮ ಸಂಖ್ಯೆ : 45 ) be published in
the official Gazette under Article 348 of the Constitution of India.
THAAWARCHAND GEHLOT
GOVERNOR OF KARNATAKA
By Order and in the name of
the Governor of Karnataka,
G. SRIDHAR
Secretary to Government
Department of Parliamentary
Affairs and Legislation
ಕರ್ನಾಟಕ ಸರ್ಕಾರ
ಸಂಖ್ಯೆ :ಸಿಐ 16 ಎಿಂಐಸಿ 2025 ಕರ್ನಾಟಕ ಸಕ್ಕಾರದ ಸಚಿವಾಲಯ,
ಡಾ. ಅಿಂಬೇಡ್ಾ ರ್ ವೀದಿ, ವಕ್ಕಸ ಸೌಧ
ಬಿಂಗಳೂರು ದಿ:30.09.2025
ಅಧಿಸೂಚನೆ
ಕರ್ನಾಟಕ ಅಕ ರ ಮ ಗಣಿಗಾರಿಕೆ ಮತ್ತ ು ಅರಾಧದ ಉತ್ಪ ತ್ತ ು ಗಳಿಂದಾದ ಸವ ತ್ ು ನನ್ನು
ವಶಡಿಸಿಕೊಳ್ಳು ವುದಕ್ಕಾ ಗಿ ಮತ್ತ ು ಜಪ್ತ ು ಗಾಗಿ ವಸೂಲಾತ್ತ ಆಯುಕ ು ರ ನೇಮಕ್ಕತ್ತ ಅಧಿನಿಯಮ,
2025(2025ರ ಕರ್ನಾಟಕ ಅಧಿನಿಯಮ ಸಂಖ್ಯೆ : 45) ರ 1ನೇ ರ ಕರಣದ (2)ನೇ ಉ ರ ಕರಣದ
ರ ದತ್ ು ವಾದ ಅಧಿಕ್ಕರವನ್ನು ಚಲಾಯಿಸಿ ಕರ್ನಾಟಕ ಸಕ್ಕಾರವು ಈ ಮೂಲಕ ಸಹ
ಅಧಿನಿಯಮವು/ಅಧಿನಿಯಮದ ಎಲಾ ಾ ಉಬಂಧಗಳ್ಳ ದಿ:03.10.2025ರಿಿಂದ ಬರತ್ಕ ಾ ದ್ದ ಿಂದು
ಗೊತ್ತ ು ಡಿಸಿದ್.
ಕರ್ನಾಟಕ ರಾಜೆ ಪಾಲರ ಆದೇಶಾನ್ನಸಾರ
ಮತ್ತ ು ಅವರ ಹೆಸರಿನಲ್ಲ ಾ
(ಸಿ ಸುಜಾತ್)
ಪ್ತೀಠಾಧಿಕ್ಕರಿ
ವಶೇಷ ತ್ನಿಖಾ ಮತ್ತ ು ಸಮನವ ಯ ಕೊೀಶ
ವಾಣಿಜೆ ಮತ್ತ ು ಕೈಗಾರಿಕೆ ಇಲಾಖ್ಯ