Latest news with #NaduProtectionofInterestsofDepositors
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.
The Hindu
20-05-2025
- Business
- The Hindu
Objective of TNPID Act is to ensure that victims get back their money, says HC
The objective of the Tamil Nadu Protection of Interests of Depositors (TNPID) Act was to ensure that the victims get back their money and registration of an FIR alone would not serve any purpose, observed the Madurai Bench of the Madras High Court while hearing petitions pertaining to Neomax financial fraud case Justice B. Pugalendhi observed that the data provided by the Economic Offences Wing (EOW) disclosed that not even 10% of the amount had been disbursed to the victims. The government had a moral responsibility to ensure that the victims got back their money. The court observed that TNPID Act was enacted to regulate financial establishments that were exploiting depositors by promising high returns and subsequently defaulting on repayments leading to widespread public distress. Many such entities had emerged in Tamil Nadu targeting the middle class and poor investors often leaving them without any effective recourse leading to societal and economic suffering of the public. The government introduced the legislation in public interest to protect the depositors' rights. It appears that the EOW officers are under the impression that they are supposed to act/prosecute only after a case was reported. They have to understand that they are also liable to prevent such offences. If any company was offering interest above the rate of interest prescribed by the Reserve Bank of India, it was the duty of the EOW to ascertain from the company whether they have any registration or authority to collect the deposits and whether they were having means to give higher returns, the court observed. Though every month such cases were being reported, greedy people were also depositing money without ascertaining whether the companies were genuine or not. Special courts have been constituted to deal with offences of such nature. Provisions have been made to seize the properties and bank accounts of the accused and to realise the amount. A very few people have benefited out of this Act and got their money back. It appears mainly because of the outdated procedures. The EOW was established not only to prosecute offenders, but also to ensure that the amount cheated by the accused is appropriated and disbursed to the victims, the court observed.
