Govt to tighten curbs on illegal deposit schemes under BUDS Act

TNN Bureau. Updated: 9/29/2022 12:30:52 PM Front Page

Srinagar: The Jammu and Kashmir government has decided to give powers to administration -appointed authority to carry out probe or take suo-motu action against the firms and financial organizations who have taken deposits from people by giving false promises.
The Jammu and Kashmir Finance Department issued a notification in this regard. The new rules were implemented as part of enforcing the BUDS (Banning of Unregulated Deposit Scheme) Act, 2019. This Union law came into force in Jammu and Kashmir following the abrogation of Article 370 on August 5, 2019.
In exercise of powers conferred by section 38 of the Banning of Unregulated Deposit Schemes Act, 2019 (21 of 2019), the Government of Union Territory of Jammu and Kashmir, in consultation with the Central Government hereby makes the following rules; namely Jammu and Kashmir Banning of Unregulated Deposit Schemes Rules, 2022, reads the order issued by Vivek Bharadwaj, Financial Commissioner (ACS), Finance Department.
As per the rules, Powers and duties of the Competent Authority under sub-section (3) of section 7.-()) If the Competent Authority or an Officer appointed to assist the Competent Authority is satisfied that the facts of the case necessitate identification of the properties or assets acquired either in the name of the deposit taker or in the name of any other person on behalf of the deposit taker, the Competent Authority or the Officer appointed to assist the Competent Authority, may procure such details from Police authorities utilizing the provisions of sub-section (1) of Section 31 or any other authority as deemed fit or form public through a public notification seeking the details of properties or assets.
If the Competent Authority, after collecting additional information, is of the opinion that some additional properties of the deposit taker require to be attached, it may do so in accordance with Section 7 of the Act, it reads.
Powers vested while conducting investigation or inquiry, Unless and otherwise felt essential, to conduct investigation or inquiry under sub-section (4) of section 7, while conducting investigation or inquiry, the following notices may be issued by the Competent Authority.
Powers relating to absconding persons: Where the Competent Authority or the Officers appointed to assist the competent Authority is satisfied or has reasons to believe that a person in respect of whom action is contemplated under the Act has absconded or is concealing himself, the Competent Authority or the Officers appointed to assist the Competent Authority shall nuke a report in writing to the Designated Court for further course of action, the rules read.
Power of Government to empanel agencies for forensic or digital audit, valuation or sale of assets, the Government shall empanel and notify the list Agencies for valuation of assets and for assisting in selling off assets to prospective buyers; and Forensic auditors and digital auditors for audit of the money trail.
The Competent Authority shall utilize the services of such agencies and auditors for the valuation of assets, for selling of assets and for forensic and digital audit of the money trail. The Competent Authority may also utilize the services of Forensic Auditors or Digital Auditors empanelled by the Indian Banks' Association for Audit of -Money trail till the State empanels such agencies, wherever felt required.
Valuation reports are being obtained while releasing the properties attached. The Designated Court while according to permission to deposit the fair value of the property in lieu of the attachment under sub-section (1) of Section 1 7 may obtain valuation reports from at least two empanelled Valuers while releasing properties
“Ceiling for Self Help Group: Any periodical payment made by the member of the Self-Help Group upto the sum of 03 Lac rupees per month shall not form part of deposit' as defined in clause (4) of section 2 of the Act”, the rules read.

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