KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENTS (AMENDMENT) ORDINANCE, 2022

[Ordinance No. 01 of 2022]

PREAMBLE

An ordinance further to amend the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (Karnataka Act 30 of 2005).

Whereas the Karnataka Legislative Assembly and the Karnataka Legislative Council are not in session and not likely to meet in near future the Governor of Karnataka is satisfied that the circumstances exist which render it necessary for him to take immediate action to promulgate the Ordinance for the purposes hereinafter appearing;

Now, therefore, in exercise of the powers conferred by clause (1) of Article 213 of the Constitution of India, the Governor of Karnataka is pleased to promulgate the following Ordinance, namely:-

Ordinance 1. Short Title and Commencement.

(1)     This Ordinance may be called the Karnataka Protection of Interest of Depositors in Financial Establishments (Amendment) Ordinance, 2022.

(2)     It shall come into force at once.

Ordinance 2. Insertion of New Section 9A.

In the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (Karnataka Act 30 of 2005) (hereinafter referred to as the principal Act), after section 9 the following new section shall be inserted, namely:-

"9A. Cognizance of offence and power to club cases.--

(1)     Offence under this Act are cognizable and Non bailable.

(2)     Notwithstanding anything contained in any other law for time being in force, if multiple First Information Reports are registered either in one Police station or in various police stations of the District or Commissionerate or in various police stations of the State against the same accused person or Financial Establishment relating to fraudulent default, then such an officer as may be prescribed may order for clubbing of subsequent registered First Information Reports into the earliest case and order to carry on common investigation. Further the common Final Report be filed under section 173 of Code of Criminal Procedure, 1973 before the Special Court, within which jurisdiction the earliest First Information report was registered and that Special Court or any other Special Court designated for trial of such offence shall try the same."

Ordinance 3. Amendment of Section 10.

In section 10 of the principal Act, after subsection (3), the following shall be inserted, namely:-

"(4) When trying an offence under this Act, the Special Court may also try an offence, other than an offence under this Act, with which the accused may, under the Code of Criminal Procedure, 1973, be charged at the same trial."