Legal Analysis: Alka Agrawal and Others v. State of Maharashtra and Others

Citation: 2026 INSC 489
Court: Supreme Court of India
Bench: A Division Bench comprising Justice N.V. Anjaria and Justice Manoj Misra
Date of Decision: May 15, 2026
Nature of Case: Criminal Appeal arising out of SLP (Crl.) No. 19305 of 2025

Synopsis

The Supreme Court allowed an appeal against the Bombay High Court’s order which had dismissed the appellants’ criminal revision application with costs of Rs. 5,00,000/-. The core issue was whether amounts totalling Rs. 2.51 crore advanced by the appellants to private individuals (respondent Nos. 2 to 6) with a promise of 24% interest per annum constituted a “deposit” under Section 2(c) of the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 (MPID Act), and whether the recipients qualified as a “financial establishment” under Section 2(d). The High Court had held that the transaction was a mere “loan” of civil nature and that no offence under the Indian Penal Code (IPC) was made out. The Supreme Court reversed, holding that the definition of “deposit” is broad and includes any receipt of money to be returned with interest, regardless of the nomenclature “loan”. It further held that “financial establishment” under Section 2(d) means “any person accepting deposit”, thus covering private individuals. The Court also ruled that the MPID Act is a self‑contained, independent statutory regime; the failure to establish IPC offences does not bar invocation of Section 3 of the MPID Act.

1. Basic Information of the Judgment

• Case Title: Alka Agrawal and Others v. State of Maharashtra and Others

• Citation: 2026 INSC 489

• Criminal Appeal No.: 2537 of 2026 (Arising out of SLP (Crl.) No. 19305 of 2025)

• Bench: Division Bench (Justice N.V. Anjaria and Justice Manoj Misra)

• Date of Decision: May 15, 2026

• Court: Supreme Court of India (Criminal Appellate Jurisdiction)

• Impugned Order: Judgment dated 14.08.2025 of the Bombay High Court (Nagpur Bench) in Criminal Revision Application No. 64 of 2024

2. Legal Framework

Major Laws and Provisions Involved

• Maharashtra Protection of Inte

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