Govt forms authority to implement MPID Act

Mubarak Ansari
Monday, 3 July 2017

According to MPID Act, the deputy collector has been appointed as the competent authority. However, over the years since the law came into existence in 1999, there has been an exponential rise in cheating cases by these companies. Therefore, for effective implementation of the law and considering the rise in such cases, the government has appointed independent competent authority comprising 12 staff members to be led by a deputy collector rank officer based in Mumbai

Pune: With the rising cases of people being duped under the pretext of lucrative returns by multi-level marketing companies, the government has formed an independent competent authority for effective implementation of Maharashtra Protection Of Interest Of Depositors (MPID) Act. The companies have duped lakhs of people to the tune of thousands of crores of rupees in the last decade.

According to MPID Act, the deputy collector has been appointed as the competent authority. However, over the years since the law came into existence in 1999, there has been an exponential rise in cheating cases by these companies. Therefore, for effective implementation of the law and considering the rise in such cases, the government has appointed independent competent authority comprising 12 staff members to be led by a deputy collector rank officer based in Mumbai.

Under this law, the properties acquired using the fraud money are seized and auctioned for paying back to the depositors. But this takes years to happen. The independent competent authority is expected to expedite the cases.

There have been several companies which are being probed for duping people like Sai Prasad group, Speak Asia, Samruddha Jeevan Group, CU Marketing among others.

Balasaheb Bhapkar (56), CMD of Sai Prasad group based in Pune and Pimpri-Chinchwad, his son and director, Shashank (26), and two other directors, Sureshlal Shrivastav and Sanjay Roy, are facing charges of duping over 20 lakh depositors across the country to the tune of Rs 2,000 crores by floating schemes that promised unrealistic returns at 15% to 21% per annum.

Speak Asia has duped more than 24 lakh investors of Rs 2,276 crore in Mumbai alone. They had also laundered more than Rs 700 crores abroad.  

 

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