The State government has sought strict enforcement of the provisions of the Banning of Unregulated Deposit Schemes Act (BUDS Act).
District Collectors have been directed to act promptly on orders issued by the Competent Authority, Banning of Unregulated Deposit Schemes Act (BUDS Act), and attach the properties of ‘deposit takers’ found to be operating unregulated deposit schemes.
The August 7 circular also directed the Collectors to adhere to the time limit prescribed for filing the application.
Complaints regarding such deposit schemes had prompted the government to issue instructions for setting up surveillance mechanisms at the district level.
Attachment process
Once the Competent Authority, BUDS Act, issues provisional attachment orders under section 7(3) of the Act, the District Collectors are required to immediately act upon the orders by identifying the properties of the ‘deposit taker.’
They should then file an application within 30 days, which can extend up to 60 days, before the designated court for making the provisional attachment absolute and for permission to sell the property by public auction or private sale.
The government circular, however, noted ‘‘inordinate delay’‘ on the part of the District Collectors in filing the applications.
The August 7 circular also directed the Collectors to adhere to the time limit prescribed for filing the application.
In February, the government urged the public to directly lodge their complaints regarding investment fraud with the Competent Authority, BUDS Act. As part of enforcing the Act in the State, the Government had framed the Kerala Banning of Unregulated Deposit Schemes Rules in 2021 and appointed IAS officer Sanjay M. Kaul as the Competent Authority.