Depositors seek repeal of KPID Act

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A delegation of depositors of Krantiveer Sangolli Rayanna Society submitting a memorandum to the State government in Belagavi on Tuesday. | Photo Credit: SPECIAL ARRANGEMENT

Some depositors of the Krantiveer Sangolli Rayanna Society in Belagavi have complained that they have not been able to get refunds from the society due to some stringent conditions in the Karnataka Protection of Interest of Depositors (KPID) Act.

In a memorandum to the State government, they have sought resolution to some technical issues in the Act or to repeal the Act altogether.

“The procedural hurdles in the law are preventing us from recovering our hard-earned savings. The State government should ensure that they are eased out or repeal the Act and help us get back our money using existing legal provisions,” they said in the memorandum.

Advocate N.R. Latur, who led a delegation of depositors that met the Deputy Commissioner Mohammad Roshan on Tuesday, said that thousands have been depositing money in the society for nearly 10 years now.

“In 2017, the society shut down its offices in Belagavi and other places. Founder-chairman Anand Appugol and other directors failed to return money to depositors. The victims approached the courts for refunds. The Consumer Court ordered the attachment of property belonging to the society’s chairman and other responsible people to facilitate repayment,” the memorandum said.

“The State government subsequently appointed a competent authority under the KPID Act to oversee the recovery process,” the memorandum said.

Assets attached under the proceedings have already been auctioned generating between ₹80 crore and ₹90 crore. Investors have been asked to submit claims along with supporting documents which they duly provided before the competent authority in Bengaluru,” the memorandum said.

“However, some claims were later rejected on the grounds that cash investments above ₹20,000 were not valid proof of deposits. Challenging this decision, they approached the High Court