India, July 16 -- The state government will increase the maximum penalty and imprisonment period for cases of financial fraud under the Maharashtra Protection of Interest of Depositors (MPID) Act, chief minister Devendra Fadnavis said in the assembly on Friday.

"The punishment needs to be increased to curb cases of cheating of depositors by credit societies and other financial institutions," Fadnavis said in response to a query during the question hour on Tuesday.

"Though we have the MPID Act for such cases, it should be admitted that we have not been successful enough to return the money to depositors by selling the properties of financial institutions and their directors," the chief minister said.

Too much time was wasted on identify...