Mumbai: The special court under the Maharashtra Protection of Interest of Depositors (MPID) Act has rejected the plea of State Bank of India seeking to release the funds to the tune of Rs5 crore lying in the account attached by the police during a probe against M/s Peacock Media Ltd. The court said the funds held in the account would be useful to satisfy claims of around 298 depositors cheated by the firm on the pretext of high returns.
SBI Moves to Confiscate Rs 5.51 Crore from Peacock Media
The case against Peacock Media was registered in 2013 and the police had attached the firm’s bank account as well as its directors’ immovable properties. The prosecution claimed that the depositors lost funds to the tune of Rs4.13 crore. The SBI now approached the court to allow it to confiscate the funds to the tune of Rs5.51 crore (deposit of Rs3.5 crore and interest thereon) to recover the loss it suffered as the firm failed to repay its loan. The bank claimed it is yet to recover funds to the tune of Rs41.14 crore from the firm.
The court noted that the bank approached for permission to auction the property under the SARFAESI Act in 2016, three years after registration of the offence. The court held that the bank therefore is not entitled to the claim in Peacock’s account.
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