Lodge complaints on investment frauds to Competent Authority of BUDS Act, people urged

The State government has urged the public to directly lodge their complaints regarding investment fraud with the Competent Authority, Banning of Unregulated Deposit Schemes Act (BUDS Act). To date, complaints against 50 firms have been filed before the authority, involving a total of ₹2,000 crore in deposits, the government said. In connection with these cases, the authority has attached the properties owned by 27 of the firms and the individuals found guilty of investment fraud. As part of enforcing the BUDS Act in the State, the government had framed the Kerala Banning of Unregulated Deposit Schemes Rules in 2021 and appointed IAS officer Sanjay M. Kaul as the Competent Authority.

The public can deposit money in schemes that are subject to the regulations and conditions of the Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA), Employees Provident Fund Organisation (EPFO), Reserve Bank of India, Central Registrar of Cooperative Societies, the National Housing Bank and those operated by institutions that have the approval of the Central and State governments.

Other than these, accepting deposits by promising excess interest is an offence under the Banning of Unregulated Deposit Schemes Act, the government said.

The District Collectors and Additional District Magistrates (who are the nodal officers) have been appointed to assist the Competent Authority. Victims of fraudulent deposit schemes can lodge complaints with the authority. There is a provision for freezing and attaching properties owned by the establishments and the owners if the police investigation proves the complaint to be true.

The Inspector General of Police (Economic Offences Wing) is tasked with overseeing the investigation into cases registered under the BUDS Act. The north, central and south zonal IGs are the nodal officers for the respective zones.

Complainants can email their complaints to ca.budsact@kerala.gov.in or mail it to Sanjay M. Kaul, Competent Authority, Banning of Unregulated Deposit Schemes Act, Room No. 374, Main Block, Secretariat.