Judge suggests sale of Sports Academy and ancestral land could resolve all liabilities under MPID Act
Mumbai, July 25, 2025
In a major development under the Maharashtra Protection of Interest of Depositors (MPID) Act, a Mumbai court has recommended auctioning two large properties in Panvel. According to the court, this could be enough to clear all outstanding dues owed to depositors. The case involves 87 properties linked to a group of accused individuals. One of them is a key suspect who holds ancestral assets in Panvel. The proceedings focus on recovering funds for investors allegedly defrauded by the group. The judge stressed that auctioning just these two properties could satisfy all debts. Prosecutors repeated this claim to highlight its significance for depositors.
The judge directed that the sale process should begin immediately in the interest of safeguarding investor funds. The move follows Enforcement Directorate (ED) findings. Earlier, the ED had attached 76 out of 87 properties. These included key parcels like the Karanala Sports Academy and the Posari land. The ED has attached the Academy property, while the authorities have listed the Posari land under the MPID Act.
According to court submissions, the competent authority supported the proposal. The tehsildar of Panvel represented the authority. In a letter dated July 9, it stated that auctioning the two large properties could clear all liabilities. The judge acknowledged this and directed the authority to begin steps for auctioning the Posari property. If auctioned, the authority will use this property to distribute funds among creditors and depositors as per MPID regulations.
The court also approved the auction of the ED-attached Karanala Sports Academy property. The authority will use the sale proceeds to pay priority creditors.These include the Deposit Insurance and Credit Guarantee Corporation (DICGC).The authority will give DICGC its share before distributing funds to other claimants. The court emphasized that officials must strictly follow statutory provisions when prioritizing claims.
In a broader observation, the judge noted that many of the 87 properties were ancestral. The accused exclusively owned several of the properties. Under the MPID Act, authorities can attach such assets to recover money from fraudulent financial firms. This is especially true when the accused have directly benefited from the proceeds.
The court instructed the competent authority to coordinate with the ED. It also directed the authority to fully account for all depositor claims. The authority must deposit any surplus remaining after settling dues into the state treasury. This ensures full transparency and compliance with MPID recovery procedures.
The legal team representing the depositors welcomed the development. They called it a “critical judicial step” to restore investor confidence. They also said it would help protect future investors from similar financial schemes.
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