Economic Offences Wing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

Latest Court Judgement &

 

Important Convictions

 
 

Latest Judgement:-

  • The constitutional validity of TNPID Act  was upheld by the Hon’ble Justice Tr. Sathsasivam of Madras High Court in the year 1999. It was again challenged in view of the Order passed by the Hon’ble full bench of Bombay High court declaring the “Maharastra protection of Interests of Depositors [ in financial Establishments] Act 1999 [ known as MPID (FE) act]” as ultra virus.   The full bench of Madras High court again upheld the constitutional validity of the TNPID Act on 02.03.2007.
     
  • In the light of the conflicting contentions of both the sides the full bench analyzed the following two issues.

    1.    Whether the Tami Nadu Act stands the test of reasonableness and does not violates articles    14,19(1) (g) and 21 of the constitution of India and the principles of natural justice

    2.    Whether the Tamil Nadu Government has legislative competence to enact the Tamil Nadu Act

  • The Hon’ble full bench has elaborately discussed the various provisions of Tamil Nadu  Act and citations and held that

    1. Cardinal principles of natural justice are not violated.

    2. There is no arbitrations or un-reasonableness in the procedure prescribed under section 3,5 and 8 of the Act, nor there is unguided power conferred on the Competent Authority or the Special Court in this regard.
     
    3. There is no violation of Articles 14,19(i),(g) and 21 of the Constitution of India as the punishment prescribed in the Act is not excessive and harsh and sections 3, 5 and 8are intended to assure a checkmate on the abuse of the tactics adopted by the financial establishments and they do it see any arbitrariness or un-reasonableness or violation of Articles 14,19 (1) (g) and 21 of the constitution of India.
  • Thus the Full Bench has held that

    1. The field of legislation, viz, Tamil Nadu Act is traceable to entries 1 and 32 of list –I, besides falling under entries 1, 7 and 8 in the concurrent list.

    2. The impugned Tamil Nadu Act does not fall within the legislative field of the Union list [List –I ] and

    3. Though there is trenching, the same is only incidental, which is permissible in Law.

  • Thus the Hon’ble Full Bench of Madras High Court held that the Tamil Nadu Protection of Interest of Depositors { in financial establishments }Act 1997 does not suffer any  legislative competency ;  nor its provisions are arbitrary and unreasonable, violative of principles of natural justice; nor offends Articles 14, 19 (1) (g) and  21 of  the  Constitution of India.

Important Conviction:-  
                                                   
 1.CHENNAI EOW-II Cr.Nos.16,17/98  U/s 5 0f TNPID Act

        JSP Enterprises had cheated 2249 depositors to the tune of Rs. 39,53,500/-. In this case accused Manavallan was arrested and prosecuted. He was convicted and sentenced to under go RI for 10 years and fined Rs.1,00,000/-, by the Hon'ble Spl Court, TNPID, Chennai on 31.12.2000.

2. CHENNAI EOW-II Cr.No.1583/97  U/s 5 0f TNPID Act

          Lakshmi Thangamaligai  had cheated 125 depositors to a tune of Rs. 1,80,000/-. In this case accused Thiyagarajan and D.Nandakumar were arrested and prosecuted. They were convicted and sentenced to under go RI for 10 years by the Hon'ble Spl Court, TNPID, Chennai on 13.07.2001.

3.ERODE EOW-II Cr.No 01/2003 U/s 5 0f TNPID Act

            A.S.Finance  had cheated 7 depositors to a tune of Rs. 10,24,500/-. In this case  accused Arumugam was arrested and  prosecuted. He was convicted and sentenced to under go RI for 3 years for each counts and fined Rs. 75,000/- by Spl Court, TNPID, Chennai on 18.08.2005.

4.TRICHY EOW-II Cr.No 02/2002 U/s 5 0f TNPID Act

           Maruthi Bearings  had cheated 9 depositors to a tune of Rs. 7,82,000/-. In this case  accused Ramamurthy was arrested and prosecuted. He was convicted and sentenced to  under go RI for 10 years by the Hon'ble Spl Court, TNPID, Chennai on 06.09.2005.

5.VELLORE EOW-II Cr.No 212/1997 U/s 5 0f TNPID Act

            Amirtham Finance  had cheated 113 depositors to a tune of Rs. 42,07,500/-. In this case  accused NandaGopal, Meera & Sanker  were arrested and prosecuted. They were convicted and sentenced  to under go RI for  13  years  and Fined Rs.50,000/- each  in default to under go RI for another 6 months. by Special Court, Chennai on 06.09.2005

6.COIMBTORE EOW-II Cr.No 14/1999 U/s 5 0f TNPID Act

           Andavar Finance  had cheated 126 depositors to a tune of Rs. 79,12,330/-. In this case accused Periyadurai, Chinnadurai & Devaraj were arrested and prosecuted. They were  convicted and sentenced to  under go RI for 5 years and fined Rs.49,80,000/- by the Hon’ble Spl Court, TNPID, Chennai on  19.10.2005. 

7.CHENNAI EOW-II Cr.No 08/2000  U/s 5 0f TNPID Act
       Maruthi Finance  had cheated 93 depositors to a tune of Rs. 1,61,00,000/-. In this case accused Mugunthan was arrested, prosecuted. and was convicted and sentenced to  under go RI for 5 years and   fined Rs.69,00,000/- ,by the Hon’ble Spl Court, TNPID, Chennai on  09.03.2006.

                               
8. KANNIYAKUMARI EOW-II Cr.No 01/2004 U/s 420 IPC
              VJR Bankers had cheated 4 depositors to a tune of Rs. 6,64,734/-. In this case  accused accused Joseph Raj was arrested and prosecuted. He was convicted and sentenced to under go RI for 5 years and fined Rs. 40,000/- on 14.03.2007 by Chief Judicial Magistrate, Nagercoil.

9. KANNIYAKUMARI EOW-II Cr.No 02/2002 U/s 420 IPC

             Sri Murugha Finance had cheated 4 depositors to a tune of Rs. 4,08,000/-. In this case  accused -Karthikeyan Pillai was arrested and prosecuted. He was convicted and sentenced to under go RI for 5 years and fined Rs.40,000/- on 29.03.2007 by Chief Judicial Magistrate, Nagercoil.

10. KANNIYAKUMARI EOW-II Cr.No 05/2003 U/s 420 IPC

              SPS Bankers had cheated 10 depositors to a tune of Rs. 16,65,142/-. In this case accused Rajendran, Kandasamy, Alagappan & Sivarajan were arrested and prosecuted. They were convicted and sentenced to under go RI for 5 years and fined Rs.40,000/- on 29.03.2007 by Chief Judicial Magistrate, Nagercoil.

11. COIMBTORE EOW-II Cr.No 18/2003 U/s 5 0f TNPID Act

           Sri vijayalakshmi Finance  had cheated 40 depositors to a tune of Rs. 42,75,250/-. In this case accused  were arrested and prosecuted. They were  convicted and sentenced to  under go RI for 3 years and fined Rs.5,60,000/- by the Hon’ble Spl Court, TNPID, Chennai on  27.10.2009

12. COIMBTORE EOW-II Cr.No 25/2003 U/s 5 0f TNPID Act

           Sri Bhavaneswari Finance  had cheated 5 depositors to a tune of Rs. 6,30,000,/-. In this case accused  were arrested and prosecuted. They were  convicted and sentenced to  under go RI for 3 years and fined Rs.5,60,000/- by the Hon’ble Spl Court, TNPID, Chennai on  27.10.2009. 

13. KANNIYAKUMARI EOW-II Cr.No 01/2003 U/s 409 IPC

              SGA Bankers had cheated 153 depositors to a tune of Rs. 54,30,244,/-. In this case accused were arrested and prosecuted. They were convicted and sentenced to under go RI for 5 years on 17.07.2009 by Chief Judicial Magistrate, Nagercoil.

14.CHENNAI EOW-II Cr.Nos.613/98  U/s 409,420,120(b) IPC & 5 0f TNPID Act

Barhav Finance and investments  had cheated 118 depositors to the tune of Rs. 82,52,000/-. In this case accused were arrested and prosecuted. A.1, Financial Establishments  was Fined Rs.1,00,000/- and A.2, Vanaja Chakkaravarthy has convicted and sentenced to under go RI for 7 years and fined Rs.1,00,000/-, by the Hon'ble Spl Court, TNPID, Chennai on 30.07.2009.

15. KANNIYAKUMARI EOW-II Cr.No 11/2003 U/s 409,420 IPC

              J.K. Bankers had cheated 7 depositors to a tune of Rs. 4,57,306,/-. In this case accused were arrested and prosecuted. They were convicted and sentenced to under go RI for 3 years and Fine Rs.8,000/- on 12.06.2009 by Chief Judicial Magistrate, Nagercoil.

16. VIRUDHUNAGAR  EOW-II Cr.No 3/2004 U/s 406,420 IPC
              Sri Parasakthi Marriamman small saving had cheated 4 depositors to a tune of Rs.1,36,663,/-. In this case accused were arrested and prosecuted. They were convicted and sentenced to under go SI for 5 yearsand Fined Rs.3000/- on 20.09.2010 by Chief Judicial Magistrate, Virudhunagar.

17. COIMBTORE EOW-II Cr.No 23/2000 U/s 406,120(b) IPC and 5 0f TNPID Act
           The Coimbatore Sree Ramakrishna Funds  had cheated 68 depositors to a tune of Rs. 1,13,57,500,/-. In this case accused  were arrested and prosecuted. They were  convicted and sentenced to  under go RI for 5 years and fined Rs.18,50,000/- by the Hon’ble Spl Court, TNPID, Chennai on  30.10.2010.