LexThe Kerala Banning of Unregulated Deposit Schemes Rules
Kerala · state statute
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Home (PS) Department
GOVERNMENT OF KERALA
No:SC1/55/2022/Home
Home (SC) Department
Thiruvananthapuram,
Dated:07-04-2022
U.O NOTE
Sub:
Home- India Code Portal -uploading of Acts -reg.
Ref:
U.O (Note) No.PS/197/2021/Home dated 10.03.2022.
Attention of Home (PS) Department may be drawn to the
reference cited and a copy of the Kerala Banning of Unregulated
Deposit Schemes Rules, 2021 may be forwarded to that Department for
further necessary action.
AJIKUMAR G
UNDER SECRETARY
Forwarded / By order,
Section Officer.
I/5234265/2022
GOVERNMENT OF KERALA
NOTIFICATION
In exercise of the powers conferred by section 38 of the Banning of Unregulated Deposit
Schemes Act, 2019 (Central Act 21 of 2019), the Government of Kerala, in consultation with the
Central Government, hereby make the following rules, namely:-
Home (SC) Department.
Dated, Thiruvananthapuram, 25 th November, 2021
10 th Vrischikam, 1197
4th Agrahayana, 1943.
G.O.(P) No. 76/2021/Home.
©
േകരള സർകാർ
Government of Kerala
2021
േകരള ഗസറ്
KERALA GAZETTE
അസാധാരണം
EXTRAORDINARY
ആധികാരികമായി ്പസിദെപടുതുനത
PUBLISHED BY AUTHORITY
Regn.No. KERBIL/2012/45073
dated 05-09-2012 with RNI
Reg No.KL/TV(N)/634/2021-2023
വാല്ം 10
Vol. X
തിരുവനനപുരം,
വ്ാഴം
Thiruvananthapuram,
Thursday
2021 നവംബർ 25
25th November 2021
1197 വൃശികം 10
10th Vrischikam 1197
1943 അ്ഗഹായനം 4
4th Agrahayana 1943
നമർ
No.
3472
S. R. O. No. 871/2021
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RULES
1. Short title and commencement.- (1) These rules may be called the Kerala Banning of
Unregulated Deposit Schemes Rules, 2021 .
(2) It shall come into force at once .
2. Definitions.- (1) In these rules, unless the context otherwise requires,-
(a) “Act” means the Banning of Unregulated Deposit Schemes Act, 2019 (Central Act 21
of 2019);
(b) “application” means an application filed by the Competent Authority under section 14
of the Act;
(c) “Competent Authority” means an authority appointed by the Government under section
7 of the Act;
(d) “ Complaint” means a representation or allegation made in writing or through electronic
means containing information on the promotion or operation of an Unregulated Deposit
Scheme or any advertisement, inducing a person to invest in or become a member of
the Unregulated Deposit Scheme;
(e) “Designated Court” means a Court constituted by the Government under sub-section (1)
of section 8 of the Act;
(f) “Form” means a form appended to these rules;
(g) “ Government” means the Government of Kerala;
(h) “ State” means the State of Kerala .
(2) The words and expressions used and not defined in these rules, shall have the same
meaning as assigned to them in the Act.
3. Ceiling for self-help groups.- Where periodic payments or any amount made by the
members of self help groups operating with ceiling, the ceiling per transaction of member of
self help groups for deposit shall be Rs.7,00,000/- (Rupees Seven Lakhs Only) per annum.
4. Manner of p rovisional a ttachment and a dministration of a ttached p roperty.- ( 1) Where the
Competent Authority have reason to believe that any deposit taker is soliciting deposits in
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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 .
(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.
(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.
(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.
(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.
(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.
(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).
(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.
(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.
(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
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deposit taker has collected deposits pursuant to an Unregulated Deposit Scheme.
(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).
(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.
(13) The notice details and proceeds of sale under sub-rule (12) shall also be entered
separately in Form 3.
5. Impounding and retention of records. - (1) The person from whose custody records are
taken under sub-section (8) of section 7 of the Act may make copies thereof, or take extracts
therefrom, in the presence of an officer authorised by the Competent Authority, at such place
and time as the Competent Authority may appoint in this behalf.
(2) The officer appointed under sub-section (2) of section 7 shall retain such records in his
custody without taking approval from the Competent Authority for a period upto three
months, and if the records are necessary to be retained beyond the said period, approval of
the Competent Authority shall be obtained.
(3) If the person from whose custody records are impounded objects for any reason to the
records being impounded, he may make an application to the Competent Authority stating
the reasons for such objection and requesting for the return of the records, and the Competent
Authority may, after giving the applicant an opportunity of being heard, pass such orders as
he thinks fit.
(4) The officer shall ensure the safe custody of the records impounded and retained in his
custody.
6 . Powers of Civil Court conferred on the Competent Authority.- (1) Apart from the powers
conferred on the Competent Authority under sub-section (4) of section 7 of the Act, the
Competent Authority shall have the powers of a Civil Court under the Code of Civil
Procedure, 1908 (Central Act 5 of 1908) while conducting investigation or inquiry in respect
of the following matters, namely:-
(a) issue commission for local inspection;
(b) to pass, during the pendency of any complaint, any interim order, as may appear to the
Competent Authority to be just and fair to meet the ends of justice;
(c) to dismiss a complaint for default or being frivolous.
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7. Issue of summons .- The Competent Authority shall issue summons in Form No.4 for the
appearance of any person or for the production of any documents.
8. Authorization for search and seizure .- For the purpose of an investigation into any offence
under the Act, the officer in charge of a Police Station may, with the authorization in Form 5,
search for the following records namely:-
(a) any record, whether physical or electronic, which is used, intended to be used, or
suspected to be used, in connection with the promotion or operation of an Unregulated Deposit
Scheme;
(b) any books of account maintained in connection with an Unregulated Deposit Scheme;
(c) any deposits acquired or suspected to be acquired in connection with the promotion or
operation of an Unregulated Deposit Scheme;
(d) any valuable securities maintained or suspected to be maintained in connection with
the promotion or operation of an Unregulated Deposit Scheme;
(e) record of any property, whether movable or immovable, acquired either in the name of
the deposit taker or in the name of any other person on behalf of the deposit taker, which is
suspected to be acquired in connection with an Unregulated Deposit Scheme;
(f) record of any account with a bank, financial institution, society, body or similar nature
market establishment, which is suspected to be used in connection with an Unregulated Deposit
Scheme;
(g) any other thing which is suspected to be used in connection with an Unregulated
Deposit Scheme.
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Form 1
[see Rule 4(1)]
Reference No.............
To
Name
Address
( Bank/Post Office/Financial Institution/Immovable Property registering authority)
Provisional attachment of property under section 7(3)
This is to inform that M/s................(Name ) is a deposit taker and Proceedings have been
lodged against M/s...............(Name ) under sub-section (3) of section 7 of the Banning of
Unregulated Deposit Schemes Act, 2019 (Central Act 21 of 2019 ) on receiving information
that the aforesaid person is soliciting deposits in contravention of section 3 of the said Act.
The order to protect the interests of depositors and in exercise of the powers conferred
under sub-section (3) of section 7 of the said Act, I....................................... ……...
(name), ........................(designation) hereby provisionally attach the aforesaid
account/property.
The property mentioned above shall not be allowed to be disposed of without the prior
permission of the under signed.
Copy to .....
Signature:
Name:
Designation:
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FORM 2
[See Rule 4 (3) ]
NOTICE OF ATTACHMENT OF MOVABLE AND IMMOVABLE PROPERTY
Office of the...................................................
…...................................................................
To
….......................................................
….......................................................
Whereas you have failed to pay the deposit of Rs..................... payable by you in
respect of …........... for the period from....................... to............................... and the interest of
Rs............... payable thereon and process fee of Rs.........................
It is ordered that as you have failed to pay the said amount and you are hereby
prohibited and restrained until further order of the undersigned, from transferring or charging
the undermentioned property in any way and that all persons be, and that they are hereby
prohibited from taking any benefit under such transfer or charge.
It is hereby further ordered that unless the said amount with interest thereon and the
cost of process fee be paid within......................... the movable and immovable property
specified below will be brought to sale in due course of law.
SPECIFICATION OF PROPERTY
Given under my hand and seal at........................ this............. day
of........................................
(Seal) District Collector
7
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FORM 3
[See Rule 4 ( 13 ) ]
NOTICE OF SALE OF IMMOVABLE PROPERTY
Office of the.....................................
….....................................................
Whereas the movable and immovable properties belonging to Shri.
(defaulter) and mentioned in the Schedule below have been attached for the recovery of
arrears amounting to Rs....................... which sum is recoverable together with interest at
….................for the period commencing immediately after the due and the costs, charges and
expenses of the proceedings for the recovery thereof;
And whereas the undersigned has ordered the sale of the attached property mentioned
in the annexed Schedule in satisfaction of the said arrears, costs, charges and expenses;
And whereas on the …............. day of..................... (the date fixed for the sale) there
will be due thereunder a sum of Rs............. including costs and interest;
Notice is hereby given that in the absence of any order of postponement the said
property shall be sold by.................... in public auction at........a.m/p.m on the said.......day
of............. at...(place)
The sale will be of the property of the defaulter above named as mentioned in the
Schedule below; and the liabilities and claims attaching to the said property, so far as they
have been ascertained, are those specified in the Schedule against each lot.
The property will be put up for sale in the lots specified in the Schedule. If the amount
to be realised by sale is satisfied by sale of a portion of the property, the sale shall immediately
be stopped with respect to the remainder. The sale will also be stopped if, before any lot is
knocked down the arrears mentioned, interest payable and costs (including the costs of the
sale) are tendered to the officer conducting the sale or proof is given to his satisfaction that the
amount of such arrears, interest and costs has been paid to the undersigned.
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At the sale, the public generally are invited to bid either personally or by duly
authorized agent. No officer or other person having any duty to perform in connection with
this sale shall, however either directly or indirectly bid or, acquire any interest in the property
sold.
The sale shall be subject to the following further conditions:-
(i) The particulars specified in the annexed Schedule have been stated to the best of the
information of the undersigned, but the undersigned shall not be answerable for any
error, misstatement or omission in this notice.
(ii) The amounts by which the biddings are to be increased shall be determined by the
officer conducting the sale. In the event of any dispute arising as to the amount of bid,
or as to the bidder, the lot shall at once again be put up to auction.
(iii) The highest bidder shall be declared to be the purchaser of any lot provided always
that he is legally qualified to bid, and it shall be in the discretion of the undersigned to
declain acceptance of the highest bid when the bid is less than the reserve price, if any,
fixed or when the price offered appear so clearly inadequate as to make it advisable to
do so.
(iv) The person declared to be the purchaser shall pay immediately after such
declaration a deposit of fifteen percent on the amount of his purchase money to the
officer conducting the sale and in default of such deposit, the property shall be put up
again and resold. The full amount of the purchase money payable shall be paid by the
purchaser to the undersigned on or before the 30 th day from the date of the sale of the
property, exclusive of such day or if the 30 th day is a sunday or other holiday then on
the first office day after the 30 th day. In default of payment within the period mentioned
above, the property shall be resold after the issue of afresh notice of sale. The deposit,
after defraying the expenses of the sale shall be liable to be forfeited to the Government
and defaulting purchaser shall forfeit all claims to the property or to any part of the sum
of which it may subsequently be sold.
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SCHEDULE I [ IMMOVABLE PROPERTY ]
Taluk Village Name of
defaulter
The position
and extent of
the land and
of its building
and other
known
improvements
thereon
The amount of
revenue
assessed on
the land or
upon its
different
sections
Amount for
the recovery
of which the
sale is ordered
1 2 3 4 5 6
SCHEDULE II [ MOVABLE PROPERTY ]
Sl No. Item Specification
Item
Value assessed Amount for
which the sale is
ordered
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FORM 4
[See Rule 7]
FORM OF SUMMONS
Summons to appear in person and /or to produce documents
To
Whereas your attendance is necessary to give evidence/whereas the
following documents (here describe the documents in sufficient detail to permit their
identification with reasonable certainty) ............................... with reference to an enquiry
under the Banning of Unregulated Deposit Schemes Act, 2019 ( Central Act 21 of 2019 )
(here enter briefly the subject of
enquiry ) ........................................... ......................................
....... ...............................................................................................................
............................................................................ now pending before me.
You are hereby summoned to appear in person/.........or/to produce/or cause to be
produced the said documents before me on the ................ day of ....... 2 0 ...... at........
O'clock at .......................(place) and not to depart thence until permitted by me. Given
under my hand and the seal this day ...............................
(Seal) Signature
Designation.
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Form 5
[See Rule 8]
AUTHORIZATION
To
(Officer to whom issued)
Whereas on consideration of information furnished before me I am satisfied that a
search of .......................................... (specify particulars) of the residential buildings or
premises is required. This is to authorize you (name and designation of the Police Officer )
........................................ to enter and search the said residential buildings or premises with the
assistance of such police or other officers of the Government, as you consider necessary.
(seal)
Signature
Superintendent of Police
By order of the Governor,
K. R. Jyothilal
Principal Secretary to Government.
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Explanatory Note
(This does not form part of the notification, but is intended to indicate its general purport.)
Sub-section (1) of s ection 38 of the Banning of Unregulated Deposit Schemes Act,
2019 (Central Act 21 of 2019) provides that the State Government, shall in consultation with
the Central Government, by notification, make rules for carrying out the provisions of the
said Act. Government have decided to make rules under the said section of the Act.
The notification is intended to achieve the above object.
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____________________________________________________________________________________________________________________________
PUBLISHED BY THE SUPERINTENDENT OF GOVERNMENT PRESSES
AT THE GOVERNMENT CENTRAL PRESS, THIRUVANANTHAPURAM, 2021