In the first-ever attachment proceedings under the Maharashtra Protection of Interest of Depositors (In Financial Establishment) Act 1999, the state government has attached properties of Shrikrupa Udyog Samuh, a financial firm owned by Hatwars, a local family, and has appointed the sub divisional officer, Nagpur as competent authority to exercise control over the property and liquid cash of Shrikrupa Udyog and its owners.
The notification to this effect was produced by the state government before the Nagpur bench of the Bombay High Court here during the hearing of a petition filed by 49 aggrieved investors against the Hatwar family.
A group of 49 small investors, mostly pensioners, led by M R Lambat had approached the high court against the inaction of authorities against Shrikrupa Udyog Samuh and its owners Hari Govind Hatwar, Vijaya Hari Hatwar, Ashish Hari Hatwar, Manish Hari Hatwar and Arti Ashish Hatwar.
Also Read
The petitioners alleged that the Hatwar family lured them by offering interest to the tune of 18 per cent to 24 per cent and collected deposits worth crores from small investors, most of them retired employees.
But instead of returning their deposits, Hatwar family refused and demanded more deposits in November 2001, the petitioners claimed.
The depositors approached the District Collector and Commissioner of Police under the Maharashtra Protection of Interest of Depositors (In Financial Establishment) Act, but the authorities failed to take any action against Shrikrupa Udyog Samuh and its owners, the petitioners charged.
The High Court had pulled up the authorities in the past for tardy progress of investigation and had directed them to initiated attachment proceedings against them.
The notification was issued under the sections 4(i), 5(i) and 12 of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999 under which the home secretary has powers to attach property of any defaulter company and its directors who had duped the investors.
The notification said the state government had received complaints from number of depositors against Shrikrupa Udyog Samuh, having its office at 59-A, Ganesh Nagar, Nagpur, and its proprietors alleging that they had defaulted to return the deposits made by the depositors, after maturity.
However in the opening lines of the said notification instead of Shrikrupa Udyog Samuh the name of the establishment was mentioned as Shrikrishna Udyog Samuh, but in annexures giving details of the property, the name was correctly mentioned.
A division bench consisting of Justice R K Batta and Justice V M Kanade, while accepting the notification, directed the authorities to publish necessary corrigendum within a period of ten days so as to remove any ambiguity.
During the last hearing the state government had assured to place on record the notification ordering attachment of movable and immovable properties of Shrikrupa Udyog Samuh owned by Hatwar family.
Accordingly APP Tejaswini Khade placed on record a notification issued by Satish Tripathy, principal secretary, home department, directing attachment of nine immovable properties and four bank accounts of Hatwar family.
The notification further said the state government was satisfied that the said financial establishment and its proprietors were not likely to return the deposits collected from scores of depositors and hence was exercising its powers under the Act.
Accordingly the said notification, first of its kind under this Act was issued by home department.