Mumbai, March 24: Maharashtra Chief Minister Devendra Fadnavis on Tuesday informed the Legislative Assembly that the state government will amend existing laws to ensure quicker disposal and auction of properties seized from companies accused of cheating depositors.
Proposal to protect investors
Replying to a question raised by Congress MLA Hemant Ogale regarding large-scale financial frauds in Ahilyanagar district, Fadnavis said the government is planning legal reforms to safeguard the interests of investors who fall prey to schemes promising unusually high returns.
Delays in legal process highlighted
He said that in many such cases, properties of fraudulent companies are seized, but legal proceedings often drag on for years, delaying compensation to affected depositors.
“There are instances where cases related to seized assets remain pending in courts for over a decade. This results in significant delays in returning money to investors,” the Chief Minister said.
Six-month timeline for court verdicts
To address this issue, the state government intends to introduce a legal provision mandating courts to deliver verdicts within six months in cases involving the auction of seized assets. This will enable authorities to quickly liquidate such properties and distribute the proceeds among defrauded depositors.
Limits on adjournments proposed
Fadnavis further stated that the proposed amendment will include provisions similar to those in the Bharatiya Nyaya Sanhita, limiting the number of adjournments that can be sought by the defence.
“The defence will not be allowed to seek repeated adjournments, thereby preventing unnecessary delays in the judicial process,” he said.
Aim to strengthen anti-fraud framework
The move is aimed at ensuring that assets seized from companies accused of duping investors through false promises of high returns can be auctioned promptly, and the recovered funds can be returned to victims without prolonged litigation.
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The Chief Minister expressed confidence that the proposed legal changes will bring relief to thousands of small investors and strengthen the state’s mechanism to tackle financial fraud more effectively.
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