Mumbai, March 24 (NationPress) In a significant announcement made during the state Assembly session on Tuesday, Chief Minister Devendra Fadnavis revealed proposed changes to the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act of 1999 (MPID Act). These amendments aim to create a more effective and punitive mechanism for the swift recovery of investor funds.

The proposed changes introduce a strict statutory deadline of 180 days (six months) for the Designated Court to determine whether to make a property attachment 'absolute' following an initial application.

During the Question Hour, the CM addressed inquiries related to the Srirampur scam, raised by member Hemant Ogle.

While the courts hold inherent powers, the amendment specifies that routine adjournments will no longer be permissible. Any delays must be justified with substantial reasons, and courts are encouraged to impose significant costs on parties that seek 'frivolous' delays.

CM Fadnavis emphasized the ongoing issue where properties remain 'attached on paper' but are not saleable. The amendment mandates that the Special MPID Court must decide on making the attachment 'absolute' within a 6-month timeframe, enabling the state to initiate the auction process even while the criminal trial is underway.

“To eliminate the practice of 'date-seeking' by defense attorneys, the new amendment will limit adjournments to a maximum of two. Justice for depositors should not be delayed for the convenience of the accused,” he stated.

Once the order is deemed absolute, the government will be authorized to commence the auction process immediately. This ensures that the proceeds can be allocated to investors even as the accused remains subject to trial.

Previously, Minister of State for Home, Yogesh Kadam, provided an update on the longstanding MPID cases in Srirampur, addressing concerns over the prolonged recovery of funds for local depositors.

He mentioned that these new amendments will have a direct impact on the Srirampur cases.

Minister Kadam pointed out that Srirampur has been a known site for multi-crore credit society scams, where numerous small depositors have been left waiting for years. He assured that these specific cases will be prioritized under the new '6-month absolute property' rule.

A crucial observation made by Minister Kadam regarding the Srirampur cases was the discrepancy between 'paper attachment' and 'physical possession'.

He noted that in several scams associated with Srirampur, properties were attached by the police, yet local authorities and liquidators faced obstacles in auctioning them due to legal stay orders. Following the amendments, once the attachment is made 'absolute' within the stipulated 6-month window, the government will pursue immediate auctions, irrespective of the ongoing criminal trials of the directors.

Minister Kadam confirmed that a specialized evaluation team will be sent to Srirampur to reassess the value of seized lands and buildings. This initiative aims to ensure that the auction prices reflect current market rates, maximizing the recovery amounts for defrauded depositors.

He also highlighted that the Home Department is monitoring the 'secondary assets' of directors involved in the Srirampur scams—assets that may have been transferred to relatives or associates. The amendments will empower the state to more aggressively attach these 'benami' properties.