Chief Minister Devendra Fadnavis announced in the state Assembly a proposed amendment to the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999. This amendment aims to expedite the recovery of investor funds by setting a strict 180-day deadline for property attachment decisions by the Designated Court. The move comes in response to concerns raised about delays in recovering funds related to the Srirampur scam.
The proposed amendment seeks to prevent routine adjournments in court proceedings and encourages the imposition of heavy costs on parties causing frivolous delays. It addresses the issue of properties remaining “attached on paper” but not being sold by mandating the Special MPID Court to decide on making attachments “absolute” within six months. This provision allows the auction process to begin even before the criminal trial concludes.
The amendment also limits adjournments to just two to discourage delay tactics by defense lawyers. Once an attachment order is absolute, the government gains the authority to initiate the auction process immediately, with proceeds being distributed to investors while the accused faces trial. Minister of State for Home, Yogesh Kadam, highlighted that the new amendments will have a direct impact on long-standing MPID cases in Shrirampur, particularly benefiting small depositors awaiting fund recovery.
Minister Kadam emphasized the importance of bridging the gap between “paper attachment” and “physical possession” in cases like those in Shrirampur. The amendments aim to expedite the auction of seized properties by dispatching special evaluation teams to re-value assets and aggressively target any secondary assets held by the directors involved in the scams. These measures are intended to maximize refunds for cheated depositors and ensure a more efficient recovery process.
