Karnataka tables Bill to secure depositors' interests

Karnataka tables Bill to secure depositors' interests

Representative image. Credit: iStock photo.

The Karnataka government introduced 11 Bills on Friday, which included stringent amendments to Karnataka Protection of Interest of Depositors in Financial Establishments (Amendment) Bill and Karnataka Epidemic Diseases (Amendment) Bill. Amendments to Karnataka Municipalities Bill were also tabled, which allows for an upward revision of property taxes.

Amendments proposed to Karnataka Protection of Interest of Depositors in Financial Establishments Bill, was in the wake of several cases against fraudulent financial schemes run by private companies. Changes in law will now allow the government to appoint one competent authority for cases pertaining to a financial establishment with offices in multiple districts.

Apart from enhancing the penal provisions and penalty for fraudulent default by financial establishments, changes in law will also help in empowering special courts to assess the value of attached assets and in ensuring their expeditious sale to help victims. Penal provisions in the amendment include imprisonment term ranging from three to seven years, and a fine which may extend up to Rs 10 lakh, for those convicted to be running a fraudulent financial establishment.

Amendments introduced to the Karnataka Epidemic Diseases Act were for the imposition of penalty provisions for violating rules formed under the Act. Those who indulge in violence against a public servant or causes damage to public property when the Act is in effect can be punished with fines of up to fifty thousand rupees or three months imprisonment or both.

Property tax

The recent Cabinet decision to increase property taxes in city corporations, except Bruhat Bengaluru Mahanagara Palike, was also introduced as an Amendment Bill under Karnataka Municipalities
Act, 1964.

Under the amendments, which was promulgated as an ordinance, the range of taxation for residential properties in cities, which was earlier fixed between 0.3% and 1% of taxable capital value of the building earlier, is now revised to 0.2% and 1.5% of the capital value of the property for residential and non-commercial properties.

Other Bills

Five university Bills were also tabled during the day. They are, University of Horticulture Sciences (Amendment) Bill, The Bengaluru Dr BR Ambedkar School of Economics University Bill, Sri Jagadguru Murugarajendra University Bill, Vidya Shilpa University Bill and the Atria University Bill.

Minor amendments to Karnataka Motor Vehicles Taxation Act and Lokayukta Act was also tabled during the session.