Investment fraudsters to lose property as police set to enforce BUDS Act
The decision to implement the provisions of the BUDS Act was taken to prevent police officials from colluding with even those who commit massive deposit frauds by charging them under petty charges of cheating.
The decision to implement the provisions of the BUDS Act was taken to prevent police officials from colluding with even those who commit massive deposit frauds by charging them under petty charges of cheating.
The decision to implement the provisions of the BUDS Act was taken to prevent police officials from colluding with even those who commit massive deposit frauds by charging them under petty charges of cheating.
Thiruvananthapuram: The Kerala Police has decided to clamp down on investment scams by strictly enforcing the Banning of Unregulated Deposit Schemes Act or BUDS Act. This law empowers the police to freeze, attach, and auction the properties of those who defraud the public by operating deposit schemes unauthorisedly.
Rules had been framed in the State in 2021 for implementing the BUDS Act passed by the Centre in 2019 prohibiting the acceptance of deposits without the approval of the government or government agencies.
The decision to implement the provisions of the BUDS Act was taken to prevent police officials from colluding with even those who commit massive deposit frauds by charging them under petty charges of cheating.
Director General of Police Anil Kant has asked the Superintendents of Police and Police Commissioners to submit before February 15 a list of the number of cases registered under this law in each of the districts.
A meeting of district police chiefs and other higher officials will be held on February 21 under the chairmanship of the DGP to discuss the issue in detail. At the meeting, the chief of Crime Branch, Shaik Darvesh Saheb, will submit recommendations to enforce the law strictly.
IAS officer Sanjay Kaul has been appointed as the designated authority to enforce the law in Kerala.
Rarely invoked law
So far provisions under the BUDS law were imposed only in a nominal number of cases in Kerala, reveals data at the police headquarters.
The police did not invoke this law in many cases, including the recent one regarding the massive deposit fraud committed by entrepreneur Praveen Rana. Earlier, it was the Central Bureau of Investigation (CBI) that included charges under this law as the case pertaining to the Popular Finance scam was handed over to it after the Kerala Police had conducted the investigation. The CBI and the Enforcement Directorate are taking steps to freeze properties in this case.
What the BUDS Act envisages
The offences under the BUDS law are non-bailable. The punishment is up to 5 years imprisonment and a fine of Rs 10 lakh for soliciting deposits unauthorisedly. If such deposits are accepted, the punishment will be 7 years imprisonment and a fine of Rs 10 lakh. If the money is not returned, the jail term will be extended to 10 years. If the offence is repeated, the fine will be up to Rs 50 acrore.
In all 14 districts of Kerala a sessions court has been empowered to deal with these cases. Station House Officers have been authorised to freeze the bank accounts and properties of offenders. The authority can attach the property if the police demand it. Later, this can be auctioned and the money returned to the depositors through a special court. However, the police have not been doing any of these.
If the offence has inter-State ramifications, the DGP can seek the services of the CBI.