The Karnataka Protection of Interest of Depositors in Financial Establishments (Amendment) Bill, 2020, was tabled in the Assembly on Friday by by Chief Minister BS Yediyurappa.

The Bill authorises the State government or authorities nominated by it to investigate related offences and also empowers the competent authority with powers of Civil Court to summon persons and document as per Code of Civil Procedure, 1908.

The legislation empowers to appoint competent authority where cases pertaining to any one financial establishment, which is spread over more than one district. Also to allow the secretary, revenue department to extend the time limit for making applications to the special court for orders to attach absolutely.

The Bill also enhances the term of imprisonment and penalty for fraudulent default by the financial establishment on par with the Banning of Unregulated Deposits Schemes Act 2019 (a central act of 2019).

It also gives power to transfer cases pending in different courts pertaining to anyone financial establishment spread over different districts to one special court. Also to utilise the services of the e-auction platform, empanelled agencies, official liquidators and the valuers approved by the nationalised bank for valuation of assets.

The Bill empowers the special court to assess the value of attached assets and for facilitating their sale expeditiously. To ensure transparency and fair assessment of the value of property to be released and certain consequential amendments are also approved.

Amendments to Municipalities Act

The Karnataka Municipalities and Certain Other Law Amendment Bill, 2021 was also tabled. Municipal Administration minister N Nagaraja said “In view of the Covid-19 pandemic in the financial year 2020-21, it is considered necessary to amendment the Karnataka Municipalities Act, 1964 and the Karnataka Municipalities Corporation Act, 1976 to extend the time limit for payment of the property tax and also to provide rebate of 5 percent in case tax is paid within one month from the date of commencement of this amendment Act.”

The Minister also tabling another Bill, said it is considered necessary to amend the Karnataka Municipalities Act, 1964 in order to revise the existing property tax structure and provide a simplified property tax base, improve the revenues of municipalities by linking the property tax base to the prevailing guidelines value under section 45B of the Karnataka Stamps Act, 1957 and to enable the state government to become eligible for additional borrowing limit of 0.25 percent of GSDP for the year 2020-21, it is desirable to bring about property tax reforms for the purpose of strengthening municipalities.

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