Dnyanradha Multi-State Scam: Hope For Depositors As Beed Court Hears Plea To Auction Attached Assets
· Free Press Journal
Beed: In a significant development offering hope to thousands of depositors who claim to have been cheated, the special Maharashtra Protection of Interest of Depositors (MPID) court in Beed has initiated proceedings on an application seeking the auction and sale of attached assets belonging to the management of Dnyanradha Multi-State Co-operative Credit Society Ltd. The application seeks to liquidate the properties and distribute the proceeds among the affected depositors.
The petition was drafted and moved on behalf of the depositors by advocate Chandrakant Thombre of the Bombay High Court's Aurangabad Bench, with advocate Pravin Vishnupant Neharkar representing the depositors before the special court.
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The matter arises under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999, in the ongoing trial of State of Maharashtra v. Suresh Dyanoba Kute and Others (Special Case No. 160/2024). The accused face allegations of defrauding depositors across Maharashtra and other states by promising lucrative interest rates.
Over 145 First Information Reports (FIRs) have been registered in connection with the alleged scam. The current trial stems from Beed Police Crime No. 113/2024, registered under Sections 420 (cheating), 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant or banker) and 34 of the Indian Penal Code, along with Sections 3 and 4 of the MPID Act.
According to the plea, police authorities had attached properties under Section 4 of the MPID Act, following which the state Home Department issued an official gazette notification on June 19, 2026, handing over the assets to the designated Competent Authority.
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Depositors stated that despite sustained follow-ups with the District Collector, the Home Department and the Superintendent of Police, concrete steps towards auctioning the properties had stalled.
Consequently, they approached the Bombay High Court through Writ Petition No. 11641/2025. Disposing of the petition on Feb 13, 2026, the High Court observed that it could not adjudicate disputed questions of fact and granted the depositors liberty to approach the designated special court where the trial is pending.
Invoking Sections 6 and 7 of the MPID Act, the depositors submitted that the special court was empowered to order the sale of attached properties and distribute the proceeds equitably.
Emphasising the urgency, the plea noted that the full trial could take more than five years. It underlined that the affected depositors included senior citizens who had invested their lifetime retirement savings and marginal farmers who had invested after selling their agricultural land.
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Taking up the depositors' plea (Exhibit 209) seeking the auction of attached assets and distribution of the sale proceeds, the court directed the public prosecutor and the defence to place their responses on record.
The matter has been listed for orders on Oct 27, 2026.
Legal counsel pointed out that while the High Court had paved the procedural path, the intervention in the Beed special court had renewed hope among depositors seeking to recover their money.
The claims detailed in the petition represent the submissions of the applicants. The court has yet to decide whether to permit the auction of the attached properties.