Mumbai, March 24 – Chief Minister Devendra Fadnavis announced on Tuesday in the state Assembly that the government has proposed an amendment to the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 (MPID Act), to ensure a faster and more effective tool for recovering investor funds.
The amendments pertain to a strict statutory deadline of 180 days (six months). The designated court is now required to decide on making a property attachment "absolute" within 180 days of the initial application.
CM Fadnavis intervened during Question Hour in response to a question raised by member Hemant Ogle regarding the Srirampur scam.
While courts have inherent powers, the amendment specifies that adjournments can no longer be granted as a matter of routine. Any delay must be supported by exceptional reasons, and the court is encouraged to impose heavy costs on parties seeking "frivolous" delays.
CM Fadnavis addressed the core issue where properties remain "attached on paper" but cannot be sold. The amendment mandates that the Special MPID Court must decide on making the attachment "absolute" within 6 months. This allows the state to begin the auction process even while the criminal trial continues.
"To stop the practice of 'delaying tactics' by defence lawyers, the proposed amendment will now strictly limit adjournments to just two. Justice for depositors cannot wait for the convenience of the accused," he said.
He added that once the order is absolute, the government is empowered to start the auction process immediately. The proceeds can be distributed to investors even while the accused is still being tried for the crime.
Earlier, Minister of State for Home, Yogesh Kadam, provided a specific update regarding the long-standing MPID cases in Shrirampur, responding to concerns about the delayed recovery of funds for local depositors.
He said that the new amendments will directly impact the Shrirampur cases.
Minister Kadam acknowledged that Shrirampur has been a hotspot for multi-crore credit society scams where thousands of small depositors have been waiting for years. He stated that these specific cases will be among the first to be processed under the new "6-month absolute property" rule.
A major point minister Kadam made regarding the Shrirampur cases was the gap between "paper attachment" and "physical possession."
He noted that in several Shrirampur-based scams, properties were attached by the police, but the local administration and the liquidator had not been able to auction them due to legal stay orders. After the amendments to the law, once the attachment is made "absolute" within the 6-month window, the government will move for immediate auction, regardless of whether the criminal trial of the directors is still ongoing.
Minister Kadam confirmed that the special evaluation machinery will be dispatched to Shrirampur to re-value seized lands and buildings. This is intended to ensure that the auction prices reflect current 2026 market rates, maximising the refund amount for the cheated depositors.
He emphasised that the Home Department is tracking the "secondary assets" of directors involved in Shrirampur scams — assets that may have been transferred to family members or associates. The amendments will allow the state to attach these "benami" properties more aggressively.