The Government of Goa on October 03, 2022, issued the Goa Banning of Unregulated Deposit Schemes Rules, 2022, in the exercise of the powers conferred by section 38 of the Banning of Unregulated Deposit Schemes Act, 2019.
The following provisions have been stated:
Section 7 specifies Provisional attachment of property by Competent Authority
(1) Where the Competent Authority or the Officer is satisfied that the facts of the case necessitate identification of the property or asset acquired either in the name of the deposit taker or in the name of any other person on behalf of the deposit taker, the Competent Authority or the Officer, may procure such details from police authorities or any other authority as deemed fit by him or from public through a public notification seeking the details of property or asset.
(2) a. Where the information is sought from the public through public notification under sub-rule (1), an advertisement may be released in two prominent local newspapers within a period of fifteen days of receipt of a report from the police authorities informing that a prima facie case exists.
b. If the Competent Authority, after collecting additional information, is of the opinion that some additional properties of the deposit taker are required to be attached, he may do so in accordance with section 7 of the Act.
Sub-section (4) of Section 7 specifies In order to conduct an investigation or inquiry the Competent Authority may issue the following notices, namely:—
(i) notice for initiation of action in Form ‘A’ hereto;
(ii) notice for additional information, if any, in Form ‘B’ hereto;
(iii) final notice for personal attendance of deposit taker or other persons and witnesses in Form ‘C’ hereto.
(4) The order of Provisional attachment shall contain to the extent possible, -
i. the details of the complaint;
ii. the details of the deposit taker or financial entity;
iii. inquiry report from the police;
iv. report received from Regulator if any;
v. complaints received from the public;
vi. details of the proceedings, reasons for attaching the property, and effective date of attachment;
vii. copies of the notices issued or served and delivery proof, if any;
viii. summary of the findings;
ix. details of property attached, bank account numbers, the money attached, securities including shares and bonds, attached movable property, the approximate value of a such property, and in case of immovable property the extent of land, survey numbers and boundaries of such property and name of the title holder of such property; and
x. conclusion; and
xi. evidence (attach the evidence or proof).
(5) The Competent Authority shall conduct the proceedings under sub-section (4) and (5) of section 7, strictly following due process of law.
5. Powers relating to absconding persons. — Where the Competent Authority or the Officer is satisfied or has reason to believe that a person in respect of whom action is contemplated under the Act has absconded or is concealing himself, the Competent Authority or the Officer shall make a report in writing to the Designated Court for further course of action.
6. Power to seize property.— Where the Competent Authority or the Officer is satisfied or has reason to believe that any property which is liable to be attached under the Act is likely to be concealed, transferred, or dealt in any manner which will result in defeating the purposes of the Act, he may direct the police officer to seize such property or make an order to freeze such property where it is not practicable to seize such property and after such direction or order such property shall not be transferred or otherwise disposed of or dealt with by any person.
7. Power to appoint legal practitioners etc.— The Competent Authority or the officer shall be entitled to use the services of the Directorate of Prosecution, Directorate of Accounts, Government Advocates, Government counsels or any other person counsels whose services are necessary for possession and realisation of the assets.
8. Power of the Government to empanel agencies for forensic or digital audit, valuation, or sale of assets.—
(1) The Government may empanel by Notification,
(a) agencies for the valuation of assets and for assisting in selling assets to prospective buyers; and
(b) forensic auditors and digital auditors for audit of the money trail.
(2) The Competent Authority shall utilise the services of such agencies and auditors for the valuation of assets, for the selling of assets, and for forensic and digital audit of the money trail.
(3) The Competent Authority may also utilize the services of forensic auditors or digital auditors empanelled by the Indian Banks’ Association for Audit of Money trail till the Government empanels such agencies, wherever felt required.
9. Valuation reports to be obtained while releasing properties attached.— The Designated Court while according to permission to deposit the fair value of the property in lieu of the attachment under sub-section (1) of section 17 may obtain valuation reports from at least two empanelled Valuers.
FORM ‘A’ specifies a Notice for initiation of action.
FORM B specifies a Notice for additional information.
FORM C specifies Final Notice.
All the mentioned Forms are attached to the notification.
[Notification No. 7/27/2020-Fin(DMU)/1088]
