Home dept goes after credit society directors to recover defrauded funds

The state home department has ordered the attachment of properties of 18 persons accused in a ₹33.95-crore scam in Jaimuni Cooperative Patpedhi Limited, a Vasai-based credit society.

- Surendra P Gangan

to recover the deposits of account holders in the credit society, as per the notification issued by the home department last week.

The notification was issued under sections 4(1) and 5(1) of the Maharashtra Protection of Interest of Depositors (MPID) Act, 1999, which authorise the government to recover the amount defrauded from depositors by selling properties of the accused including directors and employees of financial institutions.

The notification was issued after the economic offences wing of the Mira-Bhayandar Vasai-Virar police and the Palghar collector submitted reports on properties of the accused to the home department. The reports were submitted following directions from the special MPID court which is hearing the case.