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2023 Supreme(Bom) 1779
IN THE HIGH COURT OF BOMBAY
Vinay Joshi, Valmiki Sa Menezes, JJ.
Vaibhavkumar Ganeshrao Patil - Appellant
Versus
State of Maharashtra - Respondent
Criminal Writ Petition No. 729 of 2023
Decided On : 11-10-2023
H.R.Gadhia, Advocate, S.M.Ghodeswar, Advocate
IMPORTANT POINT
The court established that the MPID Act must be considered in investigations involving financial establishments to adequately protect depositors' interests and ensure proper legal proceedings.
Headnote:
MPID ACT - INVESTIGATION - The court directed the Investigating Officer to consider the applicability of the Maharashtra Protection of Interest of Depositors Act, 1999 (MPID Act) in an ongoing investigation, emphasizing the necessity of invoking relevant provisions to substantiate charges against the accused, thereby ensuring proper legal framework is applied in cases involving financial establishments and depositors' interests.
Fact of the Case:
The Petitioner sought directions to the Police to include offenses under the MPID Act in an ongoing investigation related to a financial establishment, Unnati Mahila Nagari Sahakari Patsanstha, which failed to return deposited amounts to the Petitioner and others.
Finding of the Court:
The court acknowledged the Petitioner's prima facie case regarding the applicability of the MPID Act and expressed concern that proceeding without invoking its provisions could hinder the investigation and prosecution.
Issues: Whether the provisions of the MPID Act should be invoked in the ongoing investigation concerning the financial establishment's failure to return deposits.
Ratio Decidendi: The court highlighted the importance of invoking the MPID Act to ensure that sufficient material is available to substantiate charges, thereby protecting the interests of depositors.
Final Decision: The court directed the Investigating Officer to assess the feasibility of invoking the MPID Act and take necessary steps, disposing of the criminal writ petition accordingly.
JUDGMENT/ORDER
1. By this petition, the Petitioner is seeking directions to the Police to add the offence under Sec. 3 read with Sec. 4 of the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 (for short, "MPID Act") in Crime No.369 of 2023 registered with Malkapur Police Station, District Buldhana.
2. It is Petitioner's contention that he along with other family members have deposited the amount with Unnati Mahila Nagari Sahakari Patsanstha, Malkapur and the same falls within the "term deposits", as defined under Sec. 2(c) of the MPID Act. It is further the Petitioner's contention that though there was assurance by the said Patsanstha i.e. Financial Establishment for return of money, but it was not. On said premise, at the instance of Petitioner, aforesaid crime has been registered, but the provisions of MPID Act have not been invoked. The Petitioner has pointed out that he along with some others have already applied to the Investigating Officer for invoking those provisions, but no steps were taken. The Petitioner has made a prima facie case about applicability of MPID Act.
3. We are aware that the Petitioner can agitate his grievance at the time of framing charge. However, we feel that if, investigation is proceeded without invocation of the MPID Act, if applicable, then there would be no sufficient material to substantiate the charge under MPID Act.
4. In view of the above, we hereby direct the Investigating Officer to see the feasibility of invocation of the provisions of MPID Act and take further necessary steps in that regard. Considering the limited issue, we do not feel it necessary to issue notice to the proposed Accused, who has no locus at this stage.
5. The criminal writ petition stands disposed of in above terms.
