“EOW Officials meeting with the aggrieved Depositors”

    1.   On 27.02.2007, Tmt.Archana Ramasundaram IPS, ADGP/EOW, Thiru.Vijay Kumar, IPS, IGP, Tmt. M.Sathiyapriya, SP and the officers of Economic Offences Wing conducted the first round of meetings with the depositors of various companies at the Admiralty House, Govt Estate, Chennai.

    2.   The case taken up for this meeting relates to Alwarpet Benefit Fund Limited. The response to the EOW notice was quite overwhelming as nearly 150 depositors attended this meeting. While commencing the deliberations, ADGP/EOW explained that the main purpose of holding such a meeting was to inform them about the latest stage of the case and the efforts made by the Economic Offences Wing to prosecute the offenders as well as to expedite refund of the defrauded money to the depositors in coordination with other officials such as the administrators and official liquidators. 

    3.   Alwarpet Benefit Fund Limited is a Non-Banking Finance Company which had defaulted Rs.118 Crores of deposit amount during the year 1999. On the basis of complaints for non refund of deposit amount, a criminal case was registered against the Directors of Alwarpet Benefit Fund by Chennai City Police, CCB on 26.08.1999. The case was transferred later to Economic Offences Wing Chennai on 15.01.2000 for further investigation. The accused 1.K.Sp.V.Shanmugam, 2.Harshavardhan, 3.Magesh 4.Annandanarayanan 5. Sivagnanam 6.Arunkumar 7.Namachivayam 8.Elavalagan, 9.Palani 10. Sugumar were arrested. Two accused  one Muthusamy and Karthikeyan obtained anticipatory bail. Two accused are absconding (1. Rajarathinam and 2. Unnamalai Shanmugam) and there are 3 Proclaimed Offenders 1) Unnamalai Shanmugam, 2) K.Sp.V.Shanmugam and 3) Harshavardhan.

    4.   Efforts taken by EOW

i).       Investigation was completed and charge sheet was filed in 2005 and is pending trial before Honourable CMM Court, Egmore,  Chennai.
ii).      3 accused were declared as Proclaimed Offenders.
iii)     EOW assists the Commissioner in the collection of money from borrowers.
iv)      A sum of Rs.2 crores was collected from the borrowers during the year 2006.
v)       OA was filed for absolution the properties (Authorization GO received) worth Rs.20 Crores.

   5. High Lights

            A case in Cr.No.993/99, U/s.406,409,420, 506(ii) r/w 120(b) IPC has been registered against the company for the default of Rs.118 Crores to 46, 000 depositors, of which a sum of Rs. 26,74,38,000/- has been refunded at the rate of 30%. Depositors who deposited money up to Rs.6, 000/- were fully settled and 35, 368 depositors were partly settled. During the month of February 2007 the repayment of 7th instalment has been started (Rs.6 Crores) at the rate of 5%.

1. During the meeting 14 grievance petitions were received by the ADGP EOW in person and same were forwarded to the Commissioner Justice Tr.V.Bhaktavatchalu(retd) for immediate action.
2. Action is being taken in association with commissioner for the speedy sale of properties attached.
3. 20 Immovable properties worth about Rs.18 Crores and movable properties worth about Rs.2 Crores (Cash and Shares) have been attached and is with the commissioner for further progress.
4. On the orders of Hon’ble High Court Justice V.Bhakthavatchalu assumed charge on  12.02.2007 as the new Commissioner.
5. During the meeting many depositors came forward to express their grievances. They requested for the arrest of the Proclaimed Offenders and expedite refund. The ADGP heared their specific grievances and assured appropriate action wherever possible. Depositors were requested to contact the office of the Commissioner Justice Tr.V.Bhaktavatchalu(retd) for any up date on the progress of refund at:  

          No.43-B, C.P.Ramasamy Road,
          Abiramapuram,

          Chennai-600 018.
          PH: 044-2498490, 24993994 & 24994062.