The state government will also purchase enemy or fugitive properties and develop them through agencies such as MHADA.
In a relief for depositors who have lost their money in Ponzi schemes or deposit plans, the state government will amend the law to ensure that properties of such companies and their directors can be auctioned faster and the money returned to the victims. The state government will also purchase enemy or fugitive properties and develop them through agencies such as MHADA.
"It is true that off late, white collar crime or economic offences are showing a higher rise than street crimes," said chief minister Devendra Fadnavis. He was speaking in the state legislative assembly on Tuesday on a question by Praniti Shinde (Congress, Solapur City Central).
Fadnavis said the Maharashtra Protection of Interest of Depositors in Financial Establishments Act, 1999, (MPID) approved by the Maharashtra government, had been ratified by the Supreme Court but added that they had realized its shortcomings, namely, those relating to the confiscation of property and its sale. "The state government has decided to amend this (MPID) Act," said Fadnavis, adding that the bill would be tabled in the legislature next week.
"For protecting depositors, the confiscation and sale of the property will take place sooner," noted Fadnavis, admitting that they would have to change the dispensations. "These properties are distressed properties and when they are auctioned out, these bids are less than the offset value, market value or annual schedule of rates (ASR) that are considered. Officials are in a bind over approving these lower bids as if they are accepted, the chances of action against them exists. Hence, these bids are not accepted, leading to repeated auctions," he added.
"We are proposing a change wherein after two to three calls, an empowered committee or authority can decide on selling the property at a price less than the offset price," explained Fadnavis.
He added that the common man was cagey when purchasing enemy or fugitive properties. The state government will change the law to ensure that state government's agencies like MHADA will purchase these properties at an offset price and develop them. Mumbai has a significant number of fugitive properties, which the authorities have been unable to auction off due to fear in potential buyers about these original owners.
Minister of state for home Dr Ranjit Patil told DNA they would work on reducing procedural delays for investors to get back their money through the auction of properties of the company or its directors. At present, the MPID has provisions to return money to investors by following a standard operating procedure (SOP), which included a preliminary probe, taking permissions of the court, establishing a money trail, freezing the accounts, attaching these properties, appointment of a deputy collector to liquidate them, depositing the money in an escrow account and returning the money to depositors.
"This work pertains to both, the revenue department and the police. Deputy collectors are burdened with other work and hence, there are few officials who can do this work dedicatedly, though we are taking necessary steps to increase the numbers," Patil added.
Leader of the Opposition Radhakrishna Vikhe Patil (Congress) noted that the number of economic offences and the money involved in it was showing a steady increase. He added that the money of the common man was siphoned off through these crimes.
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