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Govt told to take action against ponzi firms under KPID Act

In its statement, the state government said it had transferred the investigation to the CID on October 11, and freezed bank accounts in some cases.

Published: 01st November 2019 06:39 AM  |   Last Updated: 01st November 2019 06:39 AM   |  A+A-

By Express News Service

BENGALURU: Expressing displeasure over the state government not initiating action against the Bengaluru Urban Deputy Commissioner for defaulting on initiating action against certain ponzi scheme companies, the Karnataka High Court on Thursday directed it to initiate proceeding immediately against the companies under the Karnataka Protection of Interest of Depositors in Financial Institutions (KPID) Act as well as the DC.

A division bench of Chief Justice Abhay Shreeniwas Oka and Justice S R Krishna Kumar said, “We are surprised to see that no action was taken. Therefore, we direct the state government to take immediate action to attach the properties of the companies under KPID Act to protect the interest of investors.”  When the court was informed that the DC did not respond to letters from the state government, the court said the state cannot be helpless.

In its statement, the state government said it had transferred the investigation to the CID on October 11, and freezed bank accounts in some cases.Following this, the court asked the government to file compliance report by December 12.

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