Case Summary
The special court under the Maharashtra Protection of Interest of Depositors (MPID) Act rejected
State Bank of India’s request to release Rs 5 crore from a bank account attached by police in the
M/s Peacock Media Ltd case. The court held that the funds should remain available to satisfy claims of
approximately 298 depositors allegedly cheated with promises of high returns.
SBI’s Application
SBI sought permission to confiscate Rs 5.51 crore (deposit of Rs 3.5 crore plus interest) to offset losses
from a loan default by Peacock Media. The bank stated it still needs to recover around Rs 41.14 crore from the firm.
| Item | Details |
|---|---|
| FIR/Offence registered | 2013 (Peacock Media case; account & properties attached) |
| Claimed depositor loss | Rs 4.13 crore |
| Funds in attached account | ~Rs 5 crore (to be preserved for depositors) |
| SBI recovery sought | Rs 5.51 crore (deposit + interest) |
| Outstanding to SBI (as claimed) | Rs 41.14 crore |
Court’s Reasoning
- Attached funds are to serve depositor claims under the MPID framework.
- SBI had sought permission to auction property under the SARFAESI Act in 2016,
three years after the offence was registered. - Given the sequence and the MPID’s objective, the bank is not entitled to claim from the attached account at this stage.
What This Means: In MPID matters, protecting depositor interests takes precedence. Even secured creditors
may be denied access to attached assets if doing so would dilute relief available to victims.
Background: “SBI Moves to Confiscate Rs 5.51 Crore”
The police had attached Peacock Media’s bank account and directors’ immovable assets during the probe. While SBI attempted recovery through SARFAESI, the MPID court has prioritized restitution to the 298 depositors.
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