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Bombay High Court allows graded fund distribution under MPID Act

said the objective of Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act (MPID) was to protect the middle class and poor depositors and allowed for graded distribution of funds among small depositors. A division bench of Justices S S Shinde and Manish Pitale allowed the Maharashtra government to distribute funds procured from attached assets in the case to small investors whose outstanding dues were between Rs two lakh and Rs 10 lakh. The court was hearing two appeals filed by the Maharashtra government and a small investor challenging two orders of October and November 2020 passed by a lower court hearing matters pertaining to MPID Act.

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