New Delhi: An appeal has been filed in the Supreme Court against the High Court's decision challenging the validity of certain provisions of the Ban on Unregulated Deposit Schemes Act, 2019 (BUDS) and the Kerala Protection of Depositors' Interests in the Financial Sector. The petition was rejected. Establishment (KPID) Act, 2013.
While the BUDS Act provides a comprehensive mechanism to ban unregulated deposit schemes other than deposits taken in the ordinary course of business and to protect the interests of depositors, the KPID Act seeks to protect the interests of depositors in financial establishments in Kerala. Have taken.
The April 2024 decision of the Kerala High Court has been challenged in the petition filed in the apex court.
"The Kerala High Court erred in holding that giving retrospective effect to Section 1(3) of the BUDS Act from February 21, 2019, is not violative of Article 20(1) of the Constitution, even though the BUDS Act was enacted only in July .31, 2019,” said the petition filed through advocate Suvidutt M.S.
It claimed that the High Court erred in not holding that the KPID Act is repugnant to the BUDS Act, because "the power to enact such law is specifically vested in the Central Government under the Union List".
This petition has been filed by a woman from Kerala, who is an accused in a case registered there.
It said the petitioner was a receptionist working in a company and the allegation was that after promising to pay interest at the rate of 20 per cent per month to the original complainant on June 17, 2019, the main accused along with others I failed. Follow up the assurance or refund the deposit.The petition said that the petitioner had filed a petition before the High Court challenging the constitutional validity of Section 1(3) and Section 25(3) of the BUDS Act as they violate Article 14 (Equality before Law). ) and 21 (protection). Of the Constitution (of life and personal liberty).
"The petitioner has also challenged the validity of Section 5 of the Kerala Protection of Interests of Depositors in Financial Institutions Act, 2013 (KPID Act) as being repugnant to the BUDS Act," it said.
Section 5 of the KPID Act deals with default in repayment of deposits and interest while honoring the commitment.
While the BUDS Act provides a comprehensive mechanism to ban unregulated deposit schemes other than deposits taken in the ordinary course of business and to protect the interests of depositors, the KPID Act seeks to protect the interests of depositors in financial establishments in Kerala. Have taken.
The April 2024 decision of the Kerala High Court has been challenged in the petition filed in the apex court.
"The Kerala High Court erred in holding that giving retrospective effect to Section 1(3) of the BUDS Act from February 21, 2019, is not violative of Article 20(1) of the Constitution, even though the BUDS Act was enacted only in July .31, 2019,” said the petition filed through advocate Suvidutt M.S.
It claimed that the High Court erred in not holding that the KPID Act is repugnant to the BUDS Act, because "the power to enact such law is specifically vested in the Central Government under the Union List".
This petition has been filed by a woman from Kerala, who is an accused in a case registered there.
It said the petitioner was a receptionist working in a company and the allegation was that after promising to pay interest at the rate of 20 per cent per month to the original complainant on June 17, 2019, the main accused along with others I failed. Follow up the assurance or refund the deposit.The petition said that the petitioner had filed a petition before the High Court challenging the constitutional validity of Section 1(3) and Section 25(3) of the BUDS Act as they violate Article 14 (Equality before Law). ) and 21 (protection). Of the Constitution (of life and personal liberty).
"The petitioner has also challenged the validity of Section 5 of the Kerala Protection of Interests of Depositors in Financial Institutions Act, 2013 (KPID Act) as being repugnant to the BUDS Act," it said.
Section 5 of the KPID Act deals with default in repayment of deposits and interest while honoring the commitment.
