The Government of Karnataka on January 09, 2025, notified the Karnataka Protection of Interest of Depositors in Financial Establishments (Amendment) Act, 2024 to further amend the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004.
The following has been stated-
•In section 9.- (1) in subsection (1),- (i) for the words “along with any benefit”, the words “or on demand or otherwise by the depositor or his successor along with or without benefit”, shall be substituted; and (ii) after the words “promoter, director, partner, manager”, the words “former directors, partners, promoters who have demitted or resigned from establishment provided their liability is limited to the period of office”, shall be inserted. (2) in sub-section (3), in clause (iii), in sub-clause (b), after the words “any negligence on the part of any”, the words “such current or former”, shall be inserted.
•In section 9A of the principal Act, in subsection (2), for the words and figures “section 173 of the Code of Criminal Procedure,1973”, the words, figures and brackets, “section 193 of the Bharatiya Nagarika Suraksha Sanhita, 2023 (Central Act 46 of 2023)”, shall be substituted.
•In section 11, in Explanation, after the words “member of said establishment”, the words “and former directors, partners, promoters who have demitted or resigned from establishment provided their liability is limited to the period of office”, and shall be inserted.
•After section 21 of the Principal Act, the 21A. Power to make scheme section shall be inserted.
[Notification No. .09 OF 2025]
