Supreme Court Appeal Challenges Kerala High Court Verdict on Deposit Scheme Laws

A plea has been filed in the Supreme Court challenging a Kerala High Court decision that upheld provisions of the BUDS Act and KPID Act. The petitioner argues the High Court erred in its interpretation, specifically regarding the retrospective application of the BUDS Act and potential conflict with the Constitution.

An appeal has reached the Supreme Court challenging a recent Kerala High Court decision concerning the Banning of Unregulated Deposit Schemes Act (BUDS), 2019, and the Kerala Protection of Interests of Depositors in Financial Establishments (KPID) Act, 2013.

The BUDS Act aims to curb unregulated deposit schemes, while the KPID Act safeguards depositors in financial establishments within Kerala. The petitioner contends that the High Court's April 2024 verdict incorrectly upheld Section 1(3) of the BUDS Act, allowing its retrospective effect from February 21, 2019, which they argue violates Article 20(1) of the Constitution.

Furthermore, the plea, filed through advocate Suvidutt MS, asserts the KPID Act is inconsistent with the BUDS Act, as such legislative authority lies solely with the Central Government under the Union List. Accused in a related case, the petitioner argues that several sections of both Acts breach constitutional provisions, including Articles 14 and 21.

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