Boney Kapoor relieved of interest payment in loan dispute case
What's the story
The Bombay High Court has held that filmmaker Boney Kapoor is not required to pay interest on the amount he was previously directed to deposit under the Maharashtra Protection of Interest of Depositors (MPID) Act. The matter dates back to 2001, when the Mumbai Police Crime Branch filed a case against Ajay Thakkar and his partner Bhavana for allegedly defrauding hundreds of depositors.
Investigation findings
Thakkar's transfer of funds to Kapoor's company
During the investigation, it was found that Thakkar had transferred ₹31 lakh to Kapoor's company, Narasimha Enterprises. This transaction was recorded as a ₹29 lakh loan in the company's profit and loss account for the year ending March 2001. The MPID Court subsequently ordered Kapoor to return this amount with interest from 2001 onwards to the depositors.
Legal proceedings
Kapoor's challenge to MPID Court's order
Kapoor deposited the ₹31 lakh without interest and challenged the MPID Court's order in the High Court. He argued that the loan had been settled by giving his Mercedes-Benz to Nalin Choksi, who he claimed was owed ₹29 lakh by Thakkar. Despite this, the MPID Court directed him to deposit the entire amount along with interest. During the case proceedings, Thakkar passed away and Bhavana was acquitted.
Court decision
High Court's ruling on Kapoor's liability
After Bhavana's acquittal, Kapoor's challenge to the deposit order was taken up by a bench of Justices Shyam Chandak and Bharti Dangre. The judges observed that, at this point, no liability could be placed on Kapoor since the primary accused had been acquitted. It added that the MPID Court will decide how to handle the amount Kapoor has already deposited.