- 1 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 8TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 107906 OF 2025 (GM-RES) BETWEEN: 1. SMT. INDUMATI HANAMANTHRAO KORTI, AGE: 74 YEARS, OCC: HOUSEWIFE, R/O: PLOT NO. 102, CHIDAMBER NIVAS, SAMBAJI NAGAR, VADAGAON, BELAGAVI. 2. HANAMANTHRAO R. KORTI, AGE: 79 YEARS, OCC: RETIRED, R/O: PLOT NO. 102, CHIDAMBER NIVAS, SAMBAJI NAGAR, VADAGAON, BELAGAVI. 3. MADHUKAR V. DATTAWAD, AGE: 75 YEARS, OCC: RETIRED, R/O: GOLDEN HERITAGE APARTMENT, 3RD FLOOR, H. NO. T8, SONAR GALLI, VADAGAON, BELAGAVI. 4. KRISHNA RAMCHANDRA SHINDE, AGE:66 YEARS, OCC: BUSINESS, R/O: 27/2 SOMWAR PETH, TILKWADI, TAL/DIST: BELAGAVI- 590006 PETITIONERS (BY SRI. TEJPAL A. KAMAL, ADVOCATE) AND: 1. THE GOVERNMENT OF KARNATAKA, REP. BY ITS CHIEF SECRETARY, DEPARTMENT OF REVENUE, VIDHANA SOUDHA, BENGALURU-560001. RAKESH S HARIHAR Digitally signed by RAKESH S HARIHAR Date: 2025.12.09 11:55:14 +0530 - 2 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 2. THE DEPARTMENT OF CO-OPERATION GOVERNMENT OF KARNATAKA, REP. BY ITS CHIEF SECRETARY, VIDHANA SOUDHA, BENGALURU-01. 3. THE DEPUTY COMMISSIONER, BELAGAVI, DIST: BELAGAVI-590001. 4. THE STATE OF KARNATAKA ECONOMIC OFFENCE-C.I.D CARTTON HOUSE, PALACE ROAD, BENGALURU, R/BY INSPECTOR GENERAL OF POLICE. 5. THE GOVERNMENT OF INDIA, DIRECTORATE OF ENFORCEMENT BENGALURU, ZONAL OFFICE, 3RD FLOOR, B BLOCK, K.H. ROAD, B.M.T.C/T.T.M.C, SHANTI NAGAR, BENGALURU-580027, R/BY MR.PARASHIVAMURTHY M.K. BY DIRECTOR. 6. THE KRANTIVEER SANGOLLI RAYANNA URBAN CREDIT SOCIETY LTD. REP. BY ITS CHAIRMAN, MR. ANAND BALAKRISHNA APPUGOL, PLOT NO.1, 2ND MAIN, 2ND STAGE, HANUMAN NAGAR, BELAGAVI-590019. 7. THE KRANTIVEER SANGOLLI RAYANNA URBAN CREDIT SOCIETY LTD. REP. BY ITS SECRETARY, 3528, RESALDAR GALLI, BELAGAVI, BELAGAVI-590019. 8. THE KRANTIVEER SANGOLLI RAYANNA URBAN CREDIT SOCIETY LTD. REP. BY ITS MANAGER, 3528, RESALDAR GALLI, BELAGAVI. BELAGAVI-590019. 9. THE KRANTIVEER SANGOLLI RAYANNA URBAN CREDIT SOCIETY LTD. REP. BY ITS MANAGER, SHAHAPUR VADAGOAN ROAD, PATNEKAR BUILDING VADAGOAN, BELAGAVI. BELAGAVI-590019. - 3 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 10. THE KRANTIVEER SANGOLLI RAYANNA URBAN CREDIT SOCIETY LTD. REP. BY ITS MANAGER, RANI CHANNAMMA NAGAR BRANCH, 1ST STAGE, MOKSHA GANDHA 255, RANI CHANNAMMA NAGAR, BELAGAVI, BELAGAVI-590019. 11. SHREE GAJARAJ VIVIDHUDHESHAGALA SOUHARD SAHAKARI NIYAMIT, REP. BY ITS SECRETARY, 3543/, RESALDAR GALLI, BELAGAVI, 11A/1A, VIVEKANAND MARG, BELAGAVI-590019. 12. SHREE GAJARAJ VIVIDHUDHESHAGALA SOUHARD SAHAKARI NIYAMIT, REP. BY ITS MANAGER, 3543/, RESALDAR GALLI, BELAGAVI, 11A/1A, VIVEKANAND MARG, BELAGAVI-590019. 13. THE ASSISTANT COMMISSIONER-2 & COMPETENT AUTHORITY, OFFICE OF SPECIAL OFFICER & COMPETENT AUTHORI (IMA & OTHER KPID CASES), 3RD & 4TH FLOOR, PODIUM BLOCK, V.V. TOWER, DR. AMBEDKAR VEEDHI, BENGALURU - 560001. …RESPONDENTS (BY SRI. M.B.KANAVI, ADVOCATE FOR R5; SRI. T. HANUMAREDDY, AGA FOR R6 TO R12; SRI. VEERESH BUDHIHAL, ADVOCATE FOR R13) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A WRIT OF CERTIORARI QUASHING THE ENDORSEMENTS BEARING NO. SPLOCA/KVSRUCS/CALIM/01/2024-25(210) DATED 20.01.2025, SPLOCA/CLM-1/01/2024-25/KSR3A(1491) DATED 04.02.2025, SPLOCA/CLM-1/01/2024-25/KSR3A(1492) DATED 04.02.2025, SPLOCA/CLM-1/01/2024-25/KSR3A(1872) DATED 10.02.2025, ISSUED BY RESPONDENT NO.13 MARKED AS ANNEXURES-D, D1 TO D3 RESPECTIVELY, A WRIT OF MANDAMUS TO THE SPECIAL COURT TO - 4 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 CONSIDERED THE CLAIMS OF THE PETITIONERS IN A TIME BOUND MANNER IN THE ENDS OF JUSTICE. A WRIT OF MANDAMUS TO COMPETENT AUTHORITY RESPONDENT NO.13 TO RECONSIDER THE CLAIM OF THE PETITIONERS BY AFFORDING AN OPPORTUNITY TO THE PETITIONERS TO PRODUCED ORIGINAL FD RECITES AND AS EXPEDITIOUS AS POSSIBLE AND GRANT ANY OTHER RELIEF AS DEEMED FIT IN THE INTEREST OF JUSTICE AND ETC., THIS WRIT PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) 1. The petitioner is before this court seeking the following prayer: “Wherefore, it is respectfully prays that this Hon’ble Court to issue I. a writ of certiorari quashing the endorsements bearing no. SPLOCA/ KVSRUCS/ CALIM/ 01/ 2024- 25 (210) dated 20.01.2025, SPLOCA/ CLM-1/ 01/ 2024-25/ KSR3A (1491) dated 04.02.2025, SPLOCA/ CLM-1/ 01/ 2024-25/ KSR3A (1492) dated 04.02.2025, SPLOCA/ CLM-1/ 01/ 2024-25/ KSR3A (1872) dated 10.02.2025, issued by Respondent no.13 marked as Annexures-D, D1 to D3 respectively, II. a writ of mandamus to the special court to considered the claims of the petitioners in a time bound manner in the ends of justice. III, a writ of mandamus to competent authority Respondent No.13 to reconsider the claim of the petitioners by affording an opportunity to the petitioners to produced original FD recites and as expeditious as possible and grant any other relief as deemed fit in the interest of justice.” - 5 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 2. Heard Shri Tejpal A.Kamal, learned counsel appearing for the petitioners, Shri M.B. Kanavi, learned counsel appearing for respondent No.5, Shri T.Hanumareddy, learned AGA appearing for respondent Nos.6 to 12, Shri Veeresh Budihal, learned counsel for respondent No.3. 3. Learned counsel appearing for the parties in unison would submit that, the issue in the lis stands covered by judgment rendered by Co-ordinate Bench of this Court in W.P. No.103774 of 2021, disposed off on 12th April 2022. The Coordinate Bench of this Court held as follows: 1. The petitioner is before this Court seeking for the following reliefs: a) Respondent No.1 Dy. Commissioner Belagavi R/By Assistant Commissioner Belagavi appointed the Competent Authority U/S.5 to 8 of K.P.I.D Act, 2004 as per direction of this Hon’ble Court on 27.06.2019 but not taken any steps since last 3 years as per provisions of the K.P.I.D Act, 2004. b) Respondent No.2, I.G.P. C.I.D. E.O.W. Benglauru send notification in respect of S.O.P. issued on 18.12.2019 for prompt implementation of provision of KPID Act 2004 but has not filed any progress report in the Spl.Court and also not filed additional charge sheet. c) Respondent No.3 Govt. of India, - 6 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 Directorate of Enforcement, Bengaluru by violation of provisions of K.P.I.D Act, 2004 and s.o.p illegally attached 28 properties of Mr.Anand Appugol under provision of money laundering Act, 2002. d) Kindly allow to serve the notice by hand delivery to respondent No.4 to 6 through Khade Bazar Police Station Belagavi. e) Kindly pass such other order or direction this Hon’ble Court deem fit in the circumstances of case. 2. The petitioner represents himself and several investors who made deposits in Shri. Krantiveer Sangolli Rayanna Credit Society Ltd., of which one Mr.Anand Appugol was a chairman. Apart from the said society, there were two other societies in whose name the business was being run namely Shri. Gajaraj Co-operative Credit Society Ltd., and Shri. Bhimambika Co-operative Credit Society Ltd. 3. The petitioner and others had filed proceedings under Section 5 to 8 of The Karnataka Protection of Interest of Depositors in the Financial Establishments Act, 2004, (in short ‘KPID Act’) in pursuance of which a Special Case No.14/2018 had been registered and pending before the Principal District and Sessions Judge, Belagavi. 4. In the said matter, the properties of the societies were directed to be attached by the competent authority. However, the same could not be attached for the reason that in a criminal compliant filed against the said societies and Mr. Anand Appugol by the Assistant Registrar of Co-operative Societies alleging that the society and its office bearers had committed offences under Section 406, 408 and 420 of The Indian Penal Code, 1860 (for short ‘IPC’) and embezzled more than Rs.232 crores collected through public through fixed deposits, the Assistant Registrar of Co-operative Societies had called upon - 7 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 the Khade Bazaar Police to investigate into the matter and take necessary action against the offenders. 5. The FIR had been forwarded to the Enforcement Directorate (for short ‘ED’) on account of the offence under Section 420 of IPC being a scheduled offence to the Prevention of Money Laundering Act, 2002 (for short ‘PMLA’) the ED registered a case in F.No.ECIR/BGZO/22/2020 recorded by the Bangalore Zonal office of the Directorate of Enforcement. In the said proceedings summons have been issued to the accused person under Section 50(2) of the PMLA and their statements have been recorded in terms of Section 50(3) of PMLA. After conducting investigation being of the opinion that the properties had been purchased from and out of proceeds of crime a Provisional Attachment Order No.5/2020 was issued under Section 5(1) of the PMLA attaching 31 immovable properties of the societies which were valued at a sum of Rs.30,71,89,115/- which had been described in Schedule-A to the said PAO and the further 32 properties were attached valued at Rs.35,50,934.12/- which have been described in Schedule-B to the said PAO. Subsequently, PAO being issued necessary proceedings were registered under Section 5(5) of the Act in Original Complaint No.1643/2020. 6. In terms of the statute the PAO has been forwarded to the adjudicating authority. The adjudicating authority confirmed the PAO on 09.02.2021 as regards the said confirmation of the PAO an appeal in Appeal No.4173/2021 was filed before the appellate tribunal Prevention of Money Laundering Act. 7. It is on the basis of the said proceedings that it is contented by the police that they cannot enforce the attachment order issued under the KPID Act leaving the petitioner and the investors in lurch and as such the petitioner is before this Court seeking for the aforesaid reliefs. - 8 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 8. Sri.Nana Dhondiba Desai, party in person who is before this Court has submitted that the interest of the investors’ having invested their hard earned money into the society on the basis of the promises made by the societies and the office bearers has been adversely affected. Most of them being in the evening of their lives have been deprived of the access to the said moneys even though favourable orders have been passed under the KPID Act. The ED by attaching the properties has deprived the petitioner and the other investors of the benefits of the orders passed under the KPID Act. 9. Sri.M.B.Kanavi, learned counsel appearing for the ED reiterates that there being an offence which has been committed, it was but required for ED to register an ECIR as done and all the proceedings which have been taken forth by the ED as per the statute and the same cannot be faulted with. He submits that if at all the petitioner is aggrieved, the petitioner is required to challenge the Provisional Attachment Order and or the Confirmatory Order by approaching the appellate Tribunal of PMLA at New Delhi. 10. Sri. Shivaprabhu Hiremath, learned AGA who appears for respondents No.1 and 2 submits that the State is now helpless in view of the attachment order passed by the ED and it is only if the attachment order were to be vacated then the State would take necessary steps to bring the properties for sale and distribute the funds to the investors in terms of the KPID Act. 11. Heard Sri. Nana Dhondiba Desai, party in person, Sri. Shivaprabhu Hiremath, learned AGA for respondents No.1 and 2, Sri. M. B. Kanavi, learned counsel for respondent No.3 and perused papers. 12. It is a fact that proceedings have been initiated under the KPID Act way back in the year 2018 and the Competent Authority had ordered for attachment of the properties immediately thereafter. - 9 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 13. A complaint having been filed by Assistant Registrar of Co-operative Societies alleging that the said societies had indulged in embezzling public funds and deposits. Cr.No.185/2017 had been registered and it is on that basis that F.No.ECIR/BGZO/22/2020 came to be registered. Thus in essence the ECIR was registered on the ground of an offence committed by Sri. Krantiveer Sangolli Rayanna Credit Society Ltd., Shri. Gajaraj Co-operative Credit Society Ltd., and Shri. Bhimambika Co-operative Credit Society Ltd., and its directors of embezzlement of public funds and deposits which had been invested by the petitioner and similarly situated persons. Needless to say that the said complaint came to be registered to safeguard the interests of the petitioner and similarly situated persons. 14. The law having been taken a peculiar course, the proceedings initiated for the benefit of the petitioner had in fact turned out to be to the detriment of the petitioner. Cr.No.185/2017 which had been registered to protect the interest of the petitioner relating in ECIR being registered an attachment of the properties has been made apparently to safeguard the properties which are proceeds of crime on account of an apprehension that the directors of the societies would deal with the said properties. 15. The PAO and CO have apparently been passed to attach the properties to prevent the society and or the directors from dealing with the properties. However, in the peculiar facts of this case the said attachment is coming in the way of the Competent Authority of KPID discharging its statutory duties under the KPID Act to bring the properties for sale, liquidate the assests and make payment of the due amounts to the petitioner and similarly situated persons. 16. Though sufficient opportunities had been given to the respondents to come forward with a solution to the problem, Sri. M.B.Kanavi, learned counsel for the respondents submits that in view of PAO and - 10 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 CO having been passed the hands of the ED are tied. The action taken apparently being only to safeguard the properties from any actions of the directors in my considered opinion the same should not come in the way of the Competent Authority under the KPID Act discharging his duties under the said Act. Any action taken by the competent authority under the KPID Act in the interest of the depositors cannot be said to be in violation of the PMLA. It is therefore required that the competent authority KPID confers with the ED and respondent No.3 take into account the prevalent situation so as to come to the rescue of petitioner and similarly situated persons. 17. In view of the above, I pass the following: ORDER i) Writ petition is allowed. ii) Respondent No.3 is directed to release the properties of Shri. Krantiveer Sangolli Rayanna Credit Society Ltd., Shri. Gajaraj Co-operative Credit Society Ltd., and Shri. Bhimambika Co- operative Credit Society Ltd., and the properties of the directors of the said societies attached by the respondent No.3 in favour of the Competent Authority – KPID within a period of 60 days from the receipt of the copy of this order. iii) The Competent Authority – KPID shall thereafter act in terms of the KPID Act and bring the properties for sale and distribute the sale proceedings among the depositors in a time bound manner. The Competent Authority under the KPID shall keep the ED informed of the action taken by the Competent Authority. iv) Respondents shall act on a printout of the uploaded copy of this Order - 11 - HC-KAR NC: 2025:KHC-D:17480 WP No. 107906 of 2025 without waiting for a certified copy. In the event of anyone being in doubt, the same could be cross - checked with the website and all the counsels appearing in the matter. v) The petitioner is also directed to furnish a copy on the respondents. 4. In the light of the issue standing covered by the judgment passed by the Co-ordinate Bench of this Court (supra), on all its fours and on the same reasons, the subject petition also stands disposed. Sd/- (M.NAGAPRASANNA) JUDGE VNP/CT-ASC List No.: 1 Sl No.: 83