HC asks govt to complete verification of Kanva co-op society

The Karnataka High Court has directed the state government to complete verification and immediate order of attachment of properties of Sri Kanva Souharda Credit Cooperative Society Limited.

A division bench was unhappy with the government for the delay in notifying attachment orders of the properties under the Karnataka Protection of Interest of Depositors in Financial Establishments (KPID) Act.

A division bench, headed by Chief Justice Abhay S Oka, issued a direction to the government and the competent authority to submit a detailed report on the action taken.

The bench also directed the police to submit the investigation report in a sealed envelope. During the hearing, the bench was informed that two lists about 172 properties of the society with an estimated value of Rs 250 crore were furnished by the special officer in June. The action had to be initiated subsequently under the provisions of the KPID Act.

"Till today, the state government has not found time to notify the said order of attachment by the provisions of the Act by publication in the official gazette and two newspapers and also affixing the copy of the order at the place of the properties. We fail to understand why this simple action could not be taken by the state government in the interest of depositors,’’ the bench said.

It directed the newly appointed competent authority to exercise all the powers under the KPID Act.

KS Ramesh and three others had filed the PIL. The petitioners contended that the society had collected a sum of Rs 642.3 crore from the public by way of deposits as on March 31, 2019. The companies and entities related to the society have obtained loans up to Rs 416 crore, and society has not taken any steps to recover the money, they contended.