G. JAVARE GOWDA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Heard.

(2.) By the impugned order the Special Court in exercise of the power under Sec. 5(2) read with Sec. 11(1) of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (for short 'the Act,2004') has made absolute the interim order of attachment passed under the Government notification No.RD-09-GRC-2017 dtd. 6/2/2019.

(3.) The subject matter of this appeal is the land bearing Sy.No.495 of Uddur Village of Mysuru Taluk in all measuring 5 acres 18 guntas. Against one M/s Hindusthan Infracon (India) Pvt. Ltd., a financial establishment, the Government under notification No.RD-09-GRC-2017 dtd. 5/1/2018 under Sec. 5 of the Act, 2004 initiated proceedings on the ground that the said financial institution collected the deposits from public with a dishonest intention to cheat and ultimately cheated the depositors without returning the said deposits. It was also alleged that the parties mentioned therein by utilizing such deposit amount have acquired the property fraudulently. Respondent No.1 was appointed as Competent Authority under Sec. 5(1) of the Act, 2004 for the purpose of attachment of the properties of the members of the financial establishment who cheated the depositors. The Government exercising the powers under Sec. 3(3) of the Act, 2004 issued gazette notification as per Annexure-H dtd. 6/2/2019 attaching their properties. One of the subject matter of the said notification was the property bearing Sy.No.495 of Uddur Village of Mysuru Taluk. After such attachment, respondent No.1 filed application before the Special Court under Sec. 5(2) read with Sec. 11(1) of the Act for confirmation of the order of attachment.