- 1 - HC-KAR NC: 2026:KHC:13550 WP No. 1610 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.1610 OF 2026 (GM-KSR) BETWEEN: 1. SREE KANVA SOUHARDA DEPOSITORS WELFARE ASSOCIATION (R) A SOCIETY REGISTERED UNDER THE PROVISIONS OF KARNATAKA SOCIETIES REGISTERATION ACT REPRESENTED BY ITS PRESIDENT N. NARAYANA GOWDA 2. GENERAL SECRETARY B. MUKKKANNA OFFICE AT NO.109/17, 7TH MAIN 6TH PHASE, W.C.ROAD 1ST STAGE, SRI.MAHAGANAPATHINAGAR RAJAJINAGAR, BANGALORE - 560 010. …PETITIONER (BY SRI. K.N. NITISH, ADVOCATE FOR SRI. K.V. NARASIMHAN, ADVOCATE) AND: 1. THE COMPETENT AUTHORITY SPECIAL OFFICER & COMPETENT AUTHORITY (SPLOCA) VISHWESHWARAIAH MINI TOWER Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:13550 WP No. 1610 of 2026 VIDHANA VEEDHI BANGALORE - 560 001. 2. SRI.KANVA SOUHARDA CO-OPERATIVE CREDIT LIMITED BANGALORE A SOCIETY REGISTERED UNDER THE PROVISIONS OF KARNATAKA CO-OPERATIVE SOCIETY REPRESENTED BY THE COMPETENT AUTHORITY NO.861, KANVA SRI SAI COMPLEX OPP. MODI HOSPITAL, RAJAJINAGAR BANGALORE - 560 086. …RESPONDENTS (BY SRI. VEERESH BUDIHAL, ADVOCATE FOR R1; V/O/D 02.02.2026 NOTICE TO R2 STANDS DISPENSED WITH) THIS WP IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT THE R1 TO CONSIDER THE REPRESENTATION AT ANNX-C DATED 12.02.2025 AND REPRESENTATION AT ANNX-D DATED 26.07.2025 WITHIN A TIME FRAME AND TO MAKE PAYMENT TO THE MEMBERS OF THE PETITIONER. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The captioned writ petition is filed seeking for the following reliefs:- "a) Issue a writ of mandamus or any other appropriate writ, order/direction directing - 3 - HC-KAR NC: 2026:KHC:13550 WP No. 1610 of 2026 the 1st respondent to consider the representation at Annexure-C dated 12.02.2025 and representation at Annexure-D dated 26.07.2025 within a time frame and to make payment to the members of the petitioner. b) Grant such other and further relief as this Hon'ble Court deems fit and proper under the facts and circumstances of the case, in the interest of justice and equity." 2. The petitioner–Association has instituted the present petition claiming to espouse the cause of its members, who are stated to have deposited amounts under various schemes floated by respondent No.2. In support of the said claim, the Association has produced copies of deposit receipts relating to its members, which are placed on record as Annexures-B1 to B10. 3. It is the case of the petitioner–Association that respondent No.2 has allegedly defaulted in repayment of the deposits and that a financial irregularity/scam has - 4 - HC-KAR NC: 2026:KHC:13550 WP No. 1610 of 2026 been unearthed. According to the Association, complaints were lodged before respondent No.1, pursuant to which the State Government invoked the provisions of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (for short, “the KPID Act”). 4. The petitioner–Association further contends that assets belonging to respondent No.2, valued at approximately ₹339 crores, have already been attached and that the prime accused, Sri N.Nanjundaiah, has been arrested and remanded to judicial custody. The principal grievance of the petitioner – Association is that, despite repeated approaches made to respondent No.1, no steps have been initiated under Section 7 of "the KPID Act". Alleging such inaction on the part of respondent No.1, the petitioner–Association has approached this Court. 5. Per-contra, learned counsel appearing for respondent No.1 submits that the present writ petition filed by the petitioner–Association on behalf of the depositors is - 5 - HC-KAR NC: 2026:KHC:13550 WP No. 1610 of 2026 not maintainable. However, it is submitted that if any individual depositor approaches respondent No.1 by furnishing complete particulars of the deposits along with relevant supporting documents, the same would be duly considered in accordance with law. 6. In view of the above submission, the depositors are at liberty to approach respondent No.1 by submitting the necessary particulars of their deposits along with relevant documents. Upon receipt of such applications, respondent No.1–Authority shall consider the same and take appropriate action in accordance with Section 7(2) of the "KPID Act". 7. In view of the submission made by the learned counsel appearing for the respondent No.1, this Court proceeds to pass the following; ORDER (i) The writ petition is allowed in part. - 6 - HC-KAR NC: 2026:KHC:13550 WP No. 1610 of 2026 (ii) The members of the petitioner– Association, in their individual capacity, are at liberty to approach respondent No.1–Authority and furnish the details of their deposits along with all relevant and supporting documents for initiating appropriate action. (iii) Upon receipt of such individual applications, respondent No.1–Authority shall examine the same and take action in accordance with Section 7(2) of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004. (iv) The aforesaid exercise shall be completed within a period of six weeks from the date of receipt of the individual applications. SD/- (SACHIN SHANKAR MAGADUM) JUDGE NBM List No.: 2 Sl No.: 5