The Nagpur Bench of the Bombay High Court has taken a strict view in an alleged ₹1.14 crore investment fraud case, directing authorities to expedite the process of attaching ₹62 lakh deposited before the court in order to safeguard the interests of investors. Observing that statutory protections under the Maharashtra Protection of Interest of Depositors (MPID) Act should be implemented without unnecessary delay, the court issued time-bound directions to the investigating agency and the state government.
A division bench comprising Justice Urmila Joshi-Phalke and Justice Nivedita Mehta directed the investigating officer to submit a proposal before the District Collector by July 23 seeking attachment of the deposited amount. The bench further instructed the Maharashtra government to take a final decision on the proposal within six weeks, ensuring that legal proceedings under the MPID Act move forward without delay.
The case concerns businessman Rajesh Tarachand Bansod, who is accused of operating investment schemes under the names Fortune Fisheries, Vision Fisheries, and Fortune Aqua. Investigators allege that he collected around ₹1.14 crore from investors by promising high returns through a fish farming project based on cage culture technology. According to the allegations, investors were neither repaid their principal investment nor the promised returns.
The criminal case was registered in 2021 at Sitabuldi Police Station, Nagpur, following a complaint filed by investor Dhruv Raghubansh Kumar. Police booked the accused under provisions relating to criminal breach of trust and cheating under the Indian Penal Code, along with relevant sections of the Reserve Bank of India Act and the Maharashtra Protection of Interest of Depositors (MPID) Act.
During anticipatory bail proceedings, the Supreme Court granted conditional relief to Bansod, directing him to deposit ₹62 lakh before the Nagpur District and Sessions Court. In compliance with the Supreme Court’s order dated February 24, 2025, the accused deposited the amount.
However, a group of affected investors later approached the Bombay High Court, contending that despite the deposit, the authorities had failed to initiate attachment proceedings under the MPID Act. They argued that the delay was preventing the legal process intended to secure investor interests and facilitate eventual recovery of funds.
After examining the matter, the High Court observed that the statutory framework designed to protect depositors had not been implemented promptly. The bench emphasized that the MPID Act is intended to provide effective relief to victims of financial fraud by enabling the timely attachment of money and assets linked to fraudulent investment schemes. The court therefore directed authorities to complete the prescribed legal process within the stipulated timeline.
The investigation continues into the alleged investment scheme and the financial transactions associated with it. Authorities are expected to examine the flow of investor funds, available assets, and other financial records while proceeding with attachment under the MPID Act in accordance with the court’s directions.
According to the Future Crime Research Foundation, fraudulent investment schemes frequently lure investors by promising unusually high or guaranteed returns without credible business fundamentals. Financial crime experts advise investors to independently verify a company’s regulatory registrations, business model, financial disclosures, and legal approvals before investing. They also recommend exercising caution whenever investment schemes promise unrealistic returns or fail to provide transparent documentation. Anyone suspecting investment fraud should promptly report the matter to the appropriate regulatory authorities or law enforcement agencies so that timely legal action can be initiated and investor interests protected.
