The Housing Department of Maharashtra has issued a Government Resolution (GR) dated 12 December 2024, outlining detailed guidelines for action under the Maharashtra Protection of Interests of Depositors (in Financial Institutions) Act, 1999. This GR supersedes an earlier Government Circular (GC) dated 2 December 2024, to provide more comprehensive instructions for effective and timely implementation.
Objective of the GR
The GR emphasizes the importance of protecting depositors’ interests and addressing complaints of cheating and mismanagement in financial institutions. It aims to streamline the process for attaching properties of defaulting institutions and individuals while ensuring swift action to safeguard depositors’ investments.
- Role of the District Collector:
The GR specifies that District Collectors must take time-bound actions in cases of financial fraud or default. This includes attaching properties of accused institutions and individuals, as prescribed under the Maharashtra Depositors Act. - Comprehensive Guidelines:
The earlier GC dated 2 December 2024 is now superseded by this GR to incorporate more detailed and actionable steps. The instructions guide the District Collectors in managing complaints, conducting investigations, and ensuring transparency in the process. - Focus on Timelines:
The GR highlights the necessity of adhering to strict deadlines for filing reports, initiating property attachments, and conducting hearings to avoid delays that could further harm depositors. - Collaboration Among Authorities:
District Collectors are required to coordinate with police departments, legal officers, and other stakeholders to expedite actions. This collaborative approach is aimed at achieving efficient resolution and justice for depositors.
Impact on Depositors
The new GR aims to provide a robust mechanism to address grievances of depositors and penalize fraudulent entities. It strengthens the enforcement of the Maharashtra Protection of Interests of Depositors Act, ensuring the accountability of financial institutions and the protection of public funds.
By issuing this GR, the Maharashtra Government underscores its commitment to safeguarding depositors’ interests and enhancing trust in the financial ecosystem.