THE KARNATAKA APPOINTMENT OF RECOVERY COMMISSIONER FOR SEIZURE AND ATTACHMENT OF PROPERTY OF ILLEGAL MINING AND PROCEEDS OF ACT, 2025

KARNATAKA 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, exporters, 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 of 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 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 CBI. 

 Hence, the Bill. 

[L.A. Bill No. 64 of 2025, File No. SAMVYASHAE 71 SHASANA 2025]  

[Entries 5, 23 and 64 of List II of the Seventh Schedule to the Constitution of 

India]  

[Published in Karnataka Gazette Extra-ordinary No.549 in part-IVA 

dated:09.09.2025] 

  



KARNATAKA ACT NO. 45  OF 2025 

(First published in the Karnataka Gazette Extra-ordinary on the 9
th

 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 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 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 MTS 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 Karnataka 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 Investigation 
(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 lessees, 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 Karnataka 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 the 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 activity” 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 Recovery 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 (Central 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 commissions 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 Recovery 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 Commissioner 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 before 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 make 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 rule 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 Department, 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 initiated 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 multiple 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 expedient 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 ಅಕರ ಮ ಗಣಿಗಾರಿಕೆ ಮತ್ತು  ಅ಩ರಾಧದ 

ಉತ್ಪ ತ್ತು ಗಳಿಂದಾದ ಸವ ತ್ು ನ್ನು  ವಶ಩ಡಿಸಿಕೊಳ್ಳು ವುದಕ್ಕಾ ಗಿ ಮತ್ತು  ಜಪ್ತು ಗಾಗಿ ವಸೂಲಾತ್ತ ಆಯುಕು ರ 

ನೇಮಕ್ಕತ್ತ ಅಧಿನಿಯಮ, 2025 (2025ರ ಕರ್ನಾಟಕ ಅಧಿನಿಯಮ ಸಂಖೆ್ಯ :   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 

ಸಂಖೆ್ಯ :ಸಿಐ 16 ಎಿಂಐಸಿ 2025  ಕರ್ನಾಟಕ ಸಕ್ಕಾರದ ಸಚಿವಾಲಯ, 

ಡಾ. ಅಿಂಬೇಡ್ಾ ರ್ ವೀದಿ, ವಕ್ಕಸ ಸೌಧ 

ಬಿಂಗಳೂರು ದಿ:30.09.2025 

ಅಧಿಸೂಚನೆ 

ಕರ್ನಾಟಕ ಅಕರ ಮ ಗಣಿಗಾರಿಕೆ ಮತ್ತು  ಅ಩ರಾಧದ ಉತ್ಪ ತ್ತು ಗಳಿಂದಾದ ಸವ ತ್ು ನನ್ನು  

ವಶ಩ಡಿಸಿಕೊಳ್ಳು ವುದಕ್ಕಾ ಗಿ ಮತ್ತು  ಜಪ್ತು ಗಾಗಿ ವಸೂಲಾತ್ತ ಆಯುಕು ರ ನೇಮಕ್ಕತ್ತ ಅಧಿನಿಯಮ, 

2025(2025ರ ಕರ್ನಾಟಕ ಅಧಿನಿಯಮ ಸಂಖೆ್ಯ : 45)ರ 1ನೇ ಩ರ ಕರಣದ (2)ನೇ ಉ಩ ಩ರ ಕರಣದ 

಩ರ ದತ್ು ವಾದ ಅಧಿಕ್ಕರವನ್ನು  ಚಲಾಯಿಸಿ ಕರ್ನಾಟಕ ಸಕ್ಕಾರವು ಈ ಮೂಲಕ ಸಹ 

ಅಧಿನಿಯಮವು/ಅಧಿನಿಯಮದ ಎಲಾಾ  ಉ಩ಬಂಧಗಳ್ಳ ದಿ:03.10.2025ರಿಿಂದ ಬರತ್ಕಾ ದ್ದ ಿಂದು 

ಗೊತ್ತು ಩ಡಿಸಿದ್. 

ಕರ್ನಾಟಕ ರಾಜೆ ಪಾಲರ ಆದೇಶಾನ್ನಸಾರ 

ಮತ್ತು  ಅವರ ಹೆಸರಿನಲ್ಲಾ  

 

(ಸಿ ಸುಜಾತ್) 

ಪ್ತೀಠಾಧಿಕ್ಕರಿ 

ವಶೇಷ ತ್ನಿಖಾ ಮತ್ತು  ಸಮನವ ಯ ಕೊೀಶ 

ವಾಣಿಜೆ  ಮತ್ತು  ಕೈಗಾರಿಕೆ ಇಲಾಖ್ಯ