Thursday, February 3, 2011

Only individuals can invest in Kisan Vikas Patra: HC

Hindu undivided families not entitled to purchase Kisan Vikas Patra, rules Gujarat High Court
GANDHINAGAR: A Hindu undivided family (HUF) is not entitled to purchase Kisan Vikas Patra (KVP), the Gujarat High Court has ruled, saying the investment scheme is meant only for individuals.

In the order made available on Thursday, a single judge bench of Justice R R Tripathi dismissed a petition by Chandrakant Patel, who invested Rs 2.8 lakh in his wife’s name but was denied benefits under the KVP scheme.

The court upheld the decision of the senior superintendent of Post Offices (Vadodara West division) declaring the investment illegal.

The postal department said Patel deposited the amount through his wife and then claimed the deposits in his capacity as head of a HUF, which cannot make such investments.

Kisan Vikas Patra is a small scale investment scheme offered by post offices where money gets doubled in a specified period.

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