Depositors of the Krantiveer Sangolli Rayanna Society Belagavi, have urged the Karnataka government to resolve technical issues in the Karnataka Protection of Interest of Depositors (KPID) Act or repeal the Act altogether, claiming that procedural hurdles are preventing them from recovering their hard-earned savings.
A large group of depositors, led by Advocate N. R. Latur, gathered at the Deputy Commissioner’s office in Belagavi on Tuesday and submitted a memorandum addressed to the Chief Minister. Deputy Commissioner Mohammad Roshan received the memorandum and assured the delegation that it would be forwarded to the Chief Minister without delay.
Addressing the media, Adv. Latur said that thousands of people from Belagavi had invested in the Krantiveer Sangolli Rayanna Society over a decade ago. In 2017, the society allegedly shut down its operations after its chairman Anand Balkrishna Appugol, along with his wife and other directors, failed to return depositors’ money, forcing investors to seek legal remedies.
Following complaints, the Consumer Court ordered the attachment of properties belonging to the society’s chairman and other responsible persons to facilitate repayment. The Karnataka government subsequently appointed a Competent Authority under the KPID Act to oversee the recovery process.
According to depositors, assets attached under the proceedings have already been auctioned, generating between ₹80 crore and ₹90 crore. Investors were asked to submit claims along with supporting documents, which they duly provided before the Competent Authority in Bengaluru.
However, depositors allege that their claims were later rejected on the grounds that cash investments above ₹20,000 were not valid proof of deposits. Challenging this decision, they approached the High Court, which ruled in their favour and directed the Competent Authority to process the refunds.
Despite the court order, depositors claim they were again asked to furnish additional documents, including decade-old income tax records, bank statements, Aadhaar and PAN details. Even after complying with these requirements, several applications were reportedly rejected for lack of sufficient evidence.
Adv. Latur argued that the repeated demands for documents and rejection of claims stem from technical complications within the KPID Act framework. He said depositors are now seeking government intervention to remove these obstacles and ensure timely repayment of their deposits.
Speaking on the occasion, DC Mohammad Roshan advised citizens to exercise caution before investing in organizations that promise unusually high returns. He urged investors to verify the credentials of financial institutions thoroughly before depositing money and noted that authorities have initiated preventive measures against certain entities to curb large-scale financial fraud.
Thousands of depositors continue to await the recovery of their investments, with many expressing frustration over the prolonged legal and administrative process.