Govt to amend MPID Act to increase fine and punishment for financial establishments: Maha CM

Mumbai, July 15 Chief Minister Devendra Fadnavis on Tuesday announced in the state assembly that the government will amend the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999, to increase the punishment and also amount of fine for the financial establishments which duped the money of the depositors and defaulted on their obligations.

He said that the government will put in place a system comprising financial experts and a machinery to be outsourced for property evaluation, which will assist the prosecution and police after the registration of office in this regard in the identification of properties, their evaluation, completion of necessary processes and the sale of such properties.

The Chief Minister intervened during question hour during a discussion on a question raised by member Amol Khatal with regard to the Maitreya group for duping depositors across the state.

Former Finance Minister Sudhir Mungantiwar sought to know whether the government proposes to increase the period for punishment to 20 years instead of six years and the fine amount to Rs 20 lakh from the present Rs 1 lakh as prescribed in the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999. He made a strong case for the amendment to the Act to protect the poor from being duped.

Mungantiwar said that the depositors are not getting due justice through the NCLT. He referred to the NCLT’s ruling about Pune-based DSK group, saying that against the properties' evaluation of Rs 16,000 crore, they were auctioned at a paltry Rs 827 crore. Therefore, he insisted that the government needs to amend the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999, to increase the fine and punishment period.

He also requested that the government convene a meeting soon in this regard.

The Chief Minister, in his reply, said that a six-year punishment is bailable as per the Supreme Court ruling, and if it is more than seven years, strict action can be possible. The government will move an amendment to increase the time period so that strict action can be taken against the financial establishments for duping the money of depositors.

He mentioned that increasing the time period for punishment needs to be commensurate with the offence. The Chief Minister said that the government will also consider increasing the amount of the fine.

He admitted that even though the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 in place but the government has achieved limited success in its implementation, especially regarding the identification of properties, their evaluation and the sale of such properties involved in cases of duping of depositors. Therefore, he announced that a separate system would be created to help police expeditiously complete these processes.

--IANS

sj/dan

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