Latest news with #TNPIDAct
New Indian Express
3 days ago
- Business
- New Indian Express
Tamil Nadu gets Madras HC pat for SOPs on EOW action
MADURAI: The Madurai Bench of the Madras High Court commended the state for issuing SOPs aimed at strengthening the Economic Offences Wing by streamlining its functions and by promoting transparent and time-bound action in financial fraud cases. Pointing to the G.O. passed to include 'economic offenders' under Tamil Nadu Act 14 of 1982 (Goondas Act), Justice B Pugalendhi called it a major policy shift that empowers the authorities to invoke preventive detention against habitual offenders operating fraudulent financial firms. Recalling that the court had earlier expressed concern over lack of preventive vigilance by the EOW, the judge acknowledged the state's submission regarding the steps being taken. However, noting that no outer time limit has been fixed for issuance of ad-interim attachment orders under Section 3 of the TNPID Act, the judge fixed 12 days from the receipt of proposal by the ADGP, EOW, as the maximum permissible period for issuing such directions. The observations were made on a contempt plea against the home secretary for non-implementation of the court's order in his petition seeking release of deposit from a frozen bank account of a firm involved in fraud.
Time of India
3 days ago
- Business
- Time of India
HC hails TN's steps against fraud firms, calls SOPs a tangible relief
1 2 Madurai: Appreciating the state govt for issuing comprehensive standard operating procedures (SOPs) for the effective implementation of the Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act, 1997, pursuant to the court's earlier directions, Madras high court observed that what began as a matter of judicial concern has now evolved into a framework that promises tangible relief to affected depositors. Justice B Pugalendhi observed that the practical working of the TNPID Act was vitiated by administrative delay, lack of coordination, lack of proactive monitoring or awareness programmes, and absence of timelines, all of which defeated the very object of the legislation. These failures reduced the efficacy of the Act, leaving thousands of poor and middle-class depositors in prolonged distress. The judge observed that the court earlier issued certain directions to the state to prompt systemic reform and restore public faith in the process. Pursuant to the directions, the govt showed a meaningful response and structural progress. After a high-level meeting chaired by the chief secretary, comprehensive SOPs were issued on July 9 by the home department, bringing together all departments concerned under a common and time-bound procedural umbrella by issuing a GO. "The court also notes with appreciation that by the GO, the category of 'economic offender' has now been included as one of the categories under the Tamil Nadu Act 14 of 1982 (Goondas Act). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo This legislative inclusion empowers the authorities to invoke preventive detention against habitual offenders operating fraudulent financial establishments. This is a significant policy shift that strengthens the govt's arsenal to combat economic offences that affect public order and investor confidence, and hence, it deserves particular commendation," the judge observed. The judge observed that the court suggested the govt consider appointing a retired high court judge or a senior IAS officer as a full-time competent authority to expedite recovery and refund proceedings and inspire depositor confidence. The govt has now proposed the appointment of zonal-level officers as additional competent authorities, in addition to the existing district revenue officers, thereby decentralising and strengthening the overall enforcement machinery. The judge also appreciated the state public prosecutor Hasan Mohammed Jinnah and additional public prosecutor T. Senthil Kumar, who appeared in this matter and played a crucial role in communicating the concerns of the court to the govt. Their contribution reflects the important role that law officers play in bridging the judicial and executive institutions in matters of public interest and ensuring that judicial concerns are translated into administrative action, the judge observed while disposing of a contempt petition.
The Hindu
06-06-2025
- Business
- The Hindu
Susi Emu Farms MD gets 10 years rigorous imprisonment in 2012 Ponzi scheme case
The special court for the trial of cases under the Tamil Nadu Protection of Interests of Depositors (TNPID) Act in Coimbatore on Friday sentenced the proprietor of an emu farm in Erode to 10-year rigorous imprisonment for cheating 385 investors of ₹7.61 crore around 13 years ago. Special Judge M.N. Senthil Kumar awarded the punishment to M.S. Guru alias Gurusamy, 46, managing director of Susi Emu Farms (India) Private Limited that operated out of Perundurai in Erode district. The court also imposed a total fine of ₹7,89,25,000 on the company and Gurusamy, and of this sum, ₹7,89,00,000 should be distributed among the 385 investors proportionately, said K. Muthu Vijayan, Special Public Prosecutor, who appeared in the case. The court delivered the judgment in the 2012 case registered by the Economic Offences Wing (EOW) in Salem against the company and its MD. According to the prosecution, the company cheated 385 investors of ₹7,61,09,300 through Ponzi schemes, which were disguised as contract farming of emus. The trial was completed in the special court on Friday. The court found the company and its MD guilty of offences under Sections 420 (cheating and dishonestly inducing delivery of property) and 406 (punishment for criminal breach of trust) of the Indian Penal Code and Section 5 (default on repayment of deposits and interest honouring the commitment) of the TNPID Act. Gurusamy was awarded seven years and three years of rigorous imprisonment for the offences under Sections 420 and 406 of the IPC and another 10 years of rigorous imprisonment for the offence under Section 5 of the TNPID Act. The sentences will run concurrently. The court also ordered that the period of detention already undergone by Gurusamy, if any, should be set off.
New Indian Express
26-05-2025
- Business
- New Indian Express
Amend TNPID Act, allow IOs attach properties in financial fraud cases: Madras High Court
MADURAI: Observing that District Revenue Officers (DROs), who are authorised to file attachment applications, are overburdened resulting in delay in attaching and selling properties of accused persons in financial fraud cases, the Madurai Bench of Madras High Court has directed the state government to take steps to amend the relevant provisions of the Tamil Nadu Protection of Interests of Depositors (TNPID) Act, 1997, delegating the power to investigating officers. Justice B Pugalendhi gave the direction while hearing a batch of petitions filed by some of the victims in a case registered by Economic Offences Wing, Madurai, against Apsal India Pvt Ltd and its sister concerns, which allegedly lured depositors promising high returns but cheated them. The petitioners alleged delay in the investigation and sought to speed up the same or transfer the probe to some other agency. The judge pointed out that in cases of the above nature, if the government is satisfied that a financial establishment is not likely to return the deposits, the designated officers under TNPID Act, namely the DROs, can pass an interim order of attachment attaching the money or other properties of such financial establishments and later file an application before the Special Court within 30 days to make the attachment order absolute. They can also seek a direction to sell the attached properties through public auction so that the amount could be returned to the victims. However, since DROs are already overburdened with other works, there is a delay in filing attachment applications, the judge noted and gave the above direction to enable the investigating officers to file the applications directly. Justice Pugalendhi further recalled that in 2020, the court had appointed a committee under a retired HC judge to ensure the deposits are returned to the victims. But the chairman of the committee recused himself from the post in 2023 citing non-cooperation by the company. While explaining the delay in investigation, the investigation officer (IO) contended that based on the court's direction, EOW had been only assisting the committee all these years and after the chairperson's recusal, they have sought a clarification from the court on further course of action. Rejecting this as a lame excuse, Justice Pugalendhi observed that the appointment of committee did not preclude the IO from investigating the case. Since the accused persons had obtained bail and anticipatory bail by undertaking to co-operate with the committee and later failed to do so, the judge advised the IO to move necessary applications to cancel their bail. Further noting that the case has been pending since 2017, the judge directed the IO to expedite the probe and file final report, preferably within six months.
Time of India
26-05-2025
- Business
- Time of India
Amend TNPID Act for quicker attachment of assets: HC
Madurai: Taking into account the delay in attaching properties of accused people in financial fraud cases, observed that the govt should take steps to amend the relevant provisions under Tamil Nadu Protection of Interests of Depositors (TNPID) Act, 1997. Tired of too many ads? go ad free now The amendment would enable the investigating officer to file necessary applications directly before the special courts and ensure that properties identified by them are attached at the earliest and appropriated. Justice B Pugalendhi observed that the object of TNPID is to ensure that victims get back their money. Under the existing provisions of the Act, after an interim attachment by the govt, an application has to be filed before the concerned trial court to make it absolute, thereby causing inordinate delay. The judge said the district revenue officer (DRO), who is special officer under the Act, has to file necessary applications before the TNPID court to sell the properties. But, being burdened with other tasks, DROs are not paying any attention to their duty under provisions of TNPID Act, thereby resulting in inordinate delay in filing applications. "Considering the subsequent development of the enactments in the BNS, the govt shall take the initiative to amend the relevant provisions under the TNPID Act, enabling the investigating officer to file necessary applications directly before the special courts and to ensure that the properties identified by them are attached at the earliest and appropriated," the judge observed. The court was hearing the petition filed by S Athista Raj, seeking a direction to the Madurai EOW officials to complete the investigation in the case registered in 2017 and file the final report before the concerned court. Another petition was filed by V Ravichandran, seeking to transfer the case registered by EOW to any other investigating agency. The case of the prosecution is that the company named APSAL India Ltd., and other sister concerns, collected deposits from a large number of people to fund its business operations. The company assured that it would either return the matured amount with huge interest or allot a house site to the depositors. However, they cheated the depositors. Therefore, the case was registered by the Madurai EOW officials in 2017. The judge directed the Madurai EOW officials to conclude the investigation in the case as expeditiously as possible, preferably within six months.
