Duping investors to fetch 10 yrs’ RI

Nagpur: The state government has increased the punishment of rigorous imprisonment to 10 years for those convicted of duping investors in the name of doubling their investment via bogus schemes. Further, investigating officers have been given the power to attach convicts’ property to protect the interest of duped investors. The Legislative Assembly Monday night approved the bill to amend the Maharashtra Protection of Interests of Depositors (in financial establishments) Act, 1999.

The move to secure the interests of depositors comes on the back of the D.S. Kulkarni fraud and similar such cases. While introducing the bill in the Assembly, minister of state for home Dr Ranjit Patil said that the earlier quantum of rigorous imprisonment for six years seemed inadequate. Hence, the government wanted to increase the punishment as cases of depositors being cheated were on the rise. Mr Patil proposed enhancing the rigorous imprisonment to 10 years along with a fine of Rs 25 lakh for individuals and up to Rs 1 crore for institutions.

With offenders found to create third-party interest or sell off properties in the event the police registered a case of fraud or pending the investigation, the government proposed giving power to the investigation officer to secure movable and im-movable properties of establishments for a period of 90 days, with due permission from the district superintendent of police or commissioner of police. Earlier, the investigation officer approached the sub-registrar or tehsildar.

The government has now made it mandatory for the competent authority or designated court to decide the application of attachment of property within 180 days. Mr Patil said that the government had moved to protect the interests of depositors and punish offenders.