SagarK (Researcg Associate) 13 June 2012

Mpid act 1999 section 3

section 3 of MPID Act '1999 (Maharashtra Protection of Interests of Depositors Act) is the charging section for criminal prosecution.

explanation to section 3 provides that:

every default shall be deemed to be fraudulent.

i fail to understand how can any Act contemplate that every civil wrong (default in repayment of deposit) shall be deemend to be a criminal act (fraudulent default) and therefore liable for criminal prosecution.

I feel there is some fault in the drafting of the explanation to section 3 of the MPID Act.

Any expert views/ opinion on this ?

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2 Replies

SagarK (Researcg Associate) 18 June 2012

please advise steps to be taken where a company which has defaulted in repayment of deposits has been accused of criminal conspiracy and fraudulent default and booked under MPID Act '1999.

there is no evidence of any fraud and yet proceedings have been initiated under MPID Act.

how to prove in the court that it's just a civil matter and no criminal intention ?

SagarK (Researcg Associate) 18 June 2012

do i have to approach a Civil Lawyer or a Criminal lawyer ? matter going on in Sessions Court. any good counsel for economic offences related litigation ?