Mumbai, Jul 1 The Maharashtra government is going to set up dedicated financial monitoring units to flag entities offering unrealistically high returns on investments, the legislative assembly was informed on Wednesday.
Replying to a discussion on the Maharashtra Protection of Interests of Depositors (in Financial Establishments) (Amendment) Bill, 2026, Minister of State for Home Yogesh Kadam said such units would monitor suspicious financial schemes at the district level and ensure timely intervention.
Attachment of properties under the law currently requires court permission through the prescribed legal process, though provisions exist to grant approval in exceptional circumstances.
Kadam said the amendments seek to make legal proceedings more effective by limiting adjournments to two, with only one additional adjournment permitted in exceptional circumstances at the discretion of the magistrate.
Referring to cryptocurrency-linked frauds, Kadam said that freezing crypto assets in every case is not necessary. If a person has purchased cryptocurrency, its market value can be determined and the victim's losses can be recovered by invoking the provisions of the Act.
Kadam also said there are widespread misconceptions about cryptocurrencies, and public awareness about cybercrime and the legal framework governing digital assets remains low.
The proposed changes would strengthen safeguards against financial frauds and speed up recovery of money lost by investors, the minister said.
The Bill also brings virtual digital assets and digital currency within its ambit and requires an appellant to deposit 50 per cent of the amount involved with the competent authority before approaching a court, a provision aimed at discouraging frivolous litigation and expediting recovery for depositors, Kadam said.
Congress leader Vijay Wadettiwar urged the government to widen oversight over cooperative credit societies and urban cooperative banks, citing several high-profile scams in the state.
He sought clarity on whether such institutions would be effectively covered under the amended law and called for stricter monitoring of investments, recruitment processes and property transactions to prevent misuse of depositors' funds.
He also expressed concern over misleading advertisements promising high returns, and requested that the existing 4 per cent commission for deposit collection agents be retained to protect their livelihoods.
Sumit Wankhede (BJP) said there should be time-bound trials of financial fraud cases through fast-track courts. Authorities must ensure that financial institutions comply with Reserve Bank of India regulations before accepting public deposits, he said.
NCP (SP)'s Jayant Patil said there should be more special courts for trying cases under the Act, and vacancies of judges should be filled up.
The law would remain ineffective unless the government addressed the shortage of special courts and judicial infrastructure, the former finance minister said.
He also questioned the practicality of the provision requiring an appellant to deposit 50 per cent of the amount determined by the competent authority before filing an appeal. Victims of financial fraud often lose all their savings, making such a deposit difficult, he said.
Seeking stronger action against cybercrime and anonymous or fake social media accounts used to defame individuals, he suggested that police be given powers to act swiftly against such offenders.
