Kerala Banning of Unregulated Deposit Schemes Rules

To:
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 provisional attachment and administration of a ttached property.- (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     

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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 30th 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 section 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


	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:-
	
	
	
	RULES
	Provisional attachment of property under section 7(3)
	Explanatory Note
	(This does not form part of the notification, but is intended to indicate its general purport.)
	Sub-section (1) of section 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.