Council passes bill to fast-track justice for duped investors across Maharashtra

Mumbai: The legislative council on Friday cleared Maharashtra Protection of Interests of Depositors (in Financial Establishments) (Amendment) Bill, 2026, aimed at speeding up recovery for investors duped by fraudulent financial establishments and preventing delays in legal proceedings.

Junior home minister Yogesh Kadam said the amendments will ensure quicker resolution of investor complaints and strengthen the recovery mechanism under MPID Act. He said thousands of depositors lose their savings to investment scams and often have to wait years for relief because of prolonged litigation.Under the proposed law, designated MPID courts will ordinarily be allowed to grant only two adjournments in a case.

Any further adjournment will require exceptional reasons to be recorded in writing. “Financial establishments can no longer use prolonged litigation or repeated appeals to delay repayment to retail investors,” Kadam said.The bill also introduces a significant safeguard by requiring financial establishments to deposit 50% of their total liability before appeals against recovery or grievance orders can be entertained.

Govt believes the provision will discourage frivolous challenges and accelerate compensation to victims.The bill allows authorities to identify, attach and liquidate virtual digital assets, including cryptocurrencies and other blockchain-based digital instruments, acquired through fraudulent schemes and use the proceeds to compensate depositors. Kadam said govt often succeeds in attaching properties linked to fraudulent schemes, but recovery is delayed as accused persons challenge attachment orders in higher courts.

In some cases, the process takes nearly a decade, delaying relief to investors.The minister said the amendments would strengthen the state’s ability to trace assets, expedite trials and ensure that depositors receive compensation faster.