Maharashtra to amend MPIDA rules

Mumbai: The Maharashtra government is going to intervene if properties that belong to absconding criminals or have been seized under white-collar crimes such as chit fund scams and Ponzi schemes are not auctioned successfully. The government is set to introduce an amendment in the Maharashtra Protection of Interest of Depositors Act (MPIDA) to achieve it objectives. The amendment will empower the government to set up a high-powered committee that will have the right to sell such properties and recover duped investors’ money, said sources. 

The proceeds from the sale of assets by the committee will be used to pay back the duped investors. Also, the government will buy the enemy property if the people are not coming forward to buy it out of apprehension. Chief minister Devendra Fadnavis has announced in the Assembly that the government would bring the amendment in the MPIDA during the ongoing session of the legislature. 

The CM was replying to a question raised by Congress MLA Praniti Shinde regarding Tripura Chit Fund company scam in Solapur. Leader of Opposition Radhakrishna Vikhe-Patil also raised the issue of increasing number of financial frauds in the state and demanded strict action against the culprits. In the reply, the CM said, “It is true that white collar crimes are increasing and there are some gaps in the MPIDA. There is a need to urgently amend the act. The properties seized under such crimes must go for auction. However, many times the expected cost is not recovered from the auction. If the auction isn’t successful after two or three attempts, all the rights to sell the property will be given to a high-powered committee. The committee will sell the property to give investors their money back.” The government is also making an amendment to the Enemy Property Act so that the people can buy such property, the CM said. The government will introduce the amendment in the ongoing budget session, he added.