In a bid to curb rising financial fraud and protect citizens, the Maharashtra government will amend existing laws to impose harsher penalties and longer jail terms on those running schemes that cheat investors by promising abnormally high and unrealistic returns. Chief Minister Devendra Fadnavis, who also heads the Home Department, said on Tuesday during Question Hour in the Legislative Assembly that the government will introduce changes to the current laws to enable stricter punishment, both imprisonment and steep financial penalties.

The statement came in response to BJP legislator Sudhir Mungantiwar, who raised concerns over the surge in financial frauds. “The current penalty of R1 lakh and a six-year jail term is too lenient. Just like we introduced the Jan Suraksha Bill (Public Safety Act), it’s time we introduce a ‘Dhan Suraksha Bill’ (Money Safety Act),” he said, suggesting the maximum imprisonment be extended to 20 years. Fadnavis responded that the punishment must be proportionate to the seriousness of the crime. “To ensure the strictest possible penalties, both financial and custodial, we will amend the law accordingly.”

During the discussion, members also highlighted the delays in recovering investors’ money, citing a nine-month process involving property identification, valuation, and liquidation. Minister of State for Home Yogesh Kadam acknowledged the delay. “It’s true. Recovery typically takes nine months due to several procedural steps. However, we have set up a Financial Intelligence Unit (FIU) to monitor suspicious schemes promising unnatural returns. The FIU helps us prevent such crimes before they occur,” Kadam informed the House. Fadnavis further admitted that the state had seen limited success in cases under the Maharashtra Protection of Interest of Depositors Act (MPIDA). He announced that a special system would be created, comprising financial experts and a third-party agency for property valuation, to assist the police and prosecution. “This new mechanism will help shorten the recovery timeline significantly,” the CM said.