The Govt of Karnataka vide its order NO: RD 41 GRC 2019 has ordered to attach 49 immovable properties believed to have been acquired by the M/s Lokamanya Multipurpose Co-operative Society Ltd under Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004 (Karnataka Act 30 of 2005).
Lokmanya Multipurpose Co-op Society Ltd Chairman Mr. Kiran Thakur has issued a video statement –
News published in the dailies, It is reported that a notification has been published that some of the properties of LMCS Ltd., have been attached under the provisions of KPID Act due to non-repayment of deposits.
The Karnataka Government apparently has no jurisdiction over LMCS, as we are a multi-state cooperative society. Also, there has not been a single instance wherein we have not been able to repay any depositor his deposit or interest thereon, in sharp contrast to the notification. We clarify that we are conducting the business as per our bye-laws and we are permitted to do so and there is no violation of bye-law.
All allegations are baseless and we will approach the appropriate Court in this regard and are confident that the Court will give the verdict in our favor.
The investors must rest assured that their money is safe.
GOVERNMENT OF KARNATAKA
NO: RD 41 GRC 2019
Whereas, upon considering the reports of the District Magistrate, i.e Deputy Commissioner, Belagavi and after due investigation of the complaints of depositors it has come to the notice of the Government, that the M/s Lokamanya Multipurpose Co-operative Society Ltd., Belagavi are involved in fraudulent transactions by clandestinely and illegally collecting deposits or money from the general public and thereafter have failed to return the same either after maturity or on demand made by the depositors or complainants with promised interest and other assured benefits and thereby have failed to render the services promised to them.
Now therefore, in exercise of the powers conferred by sub – section (2) of Section 3 of the Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004 (Karnataka Act 30 of 2005), the Government under the circumstances stated above having satisfied that in order to protect the interest of depositors it is necessary to attach the immovable properties believed to belong to M/s LokamanyaMultipurpose Co-operative Society Ltd., Belagavi.
Therefore, the Government hereby attaches all immovable properties as specified in the Annexure to this order believed to have been acquired by the M/s Lokamanya Multipurpose Co-operative Society Ltd., Belagavi either in its own name or in the name of any other person from and out of the deposits collected by the M/s Lokamanya Multipurpose Co-operative Society Ltd., Belagavi and where it transpires that such money or such other properties of the said financial establishment, or the personal assets of the promoters, partners, directors, managers or members or any other person of the said financial establishment is not sufficient for the repayment of the deposits or interest or such other assured benefits to the depositors.
Note: All the aforesaid properties, from the date of publication of this order in the Official Gazette, shall forthwith vest with the Competent Authority, who has been appointed by the Government, pending further orders from the Special Court.
By Order and in the name of the
Governor of Karnataka
Under Secretary to Government
Revenue Department (Special Cell)