Sowdambika Group of Firms

 I. Gist of the Case

    Six cases were registered against Sowdambika Group of Finance in Coimbatore EOW II. Cr.Nos.07/2001, 08/2001, 09/2001, 10/2001, 11/2001 and 10/2002, U/s.409, 420 IPC and 5 of TNPID Act against T.S.Sambamoorthy Firms, Sowdeswari Finance, Sow Finace Corporation, Jayashree Investments, Saraswathi Investments and Samundeeswari Finance respectively. In all the 6 cases 680 complaints were received for the default of Rs.4,94,88,650/-.

    Cases also registered and investigated by Trichy, Salem and Madurai EOW II against Sowdambika Group of Finance.

    On 07.11.2006 the Honourable Chief Justice of High Court, Madras Mr.A.P.Shah and the Honourable Justice Mr.K.Chandru have delivered the orders on the file of the petition by O.Kasimayan in W.P.No.800/2008 against the Administrator Tr.A.S.Muthusamy. As per the auditors report a sum of more than rupees one crore has not been accounted by the Administrator. In the meantime the Administrator Tr.A.S.Muthusamy is restrained from acting as Administrator. Ms.R.Mala, Registrar (Vigilance) as appointed as interim Administrator and ordered to take charge of all the records and assets of the company. Rs.65,00,000/- at the rate of 10% has been repaid to 650 depositors by the former Administrator Tr.A.S.Muthusamy.

    On 08.02.2007 the Chief Justice has permitted the interim Administrator Miss.Mala the Registrar, High Court (Vigilance) to receive a sum of Rs.5 Crores from (T.S.Manohar, Managing Director, Sowdambika Group of Finance, Companies) and the same may be deposited with Indian Bank, High Court Extension in short time deposit.

    The interim Administrator has permitted to release and disburse the interest at the rate of 9% till the date of maturity or 20.11.2001 whichever is earlier. The direction relating to payment of interest is purely an interim arrangement and appropriate rate of interest and the liability will be fixed at the time of hearing of the petition.

    The Registrar General, High Court has issued cheques directly to 176 depositors through registered post for Rs.1,00,55,310/-. Further as per orders of the Honourable High Court in WA No.800/2006, dated: 06.06.2007 "The Principle Judge" Coimbatore has been appointed as interim Administrator in this case, since Selvi.R.Mala has been promoted as Registrar General High Court, Madras. The court has directed the Registrar General to hand over charge and proceedings to the newly appointed interim Administrator before 19.06.2007.

    The District Judge has received the entire records from the Registrar General. The District Judge has opened an office in the premises of the District Court, Coimbatore. He has called 1001 depositors so far and physically verified with regard to the disbursement. The Honourable High Court has ordered the interim Administrator on 31.08.2007 in WA No.800/06 that the amount available for distribution is Rs.5,18,38,739/- and proceeded with the work of distribution of the amount to the depositors with interest @ rate of 12% per annum. The District Judge has started the process for issuing cheques to the depositors and so far Rs.64,81,474/- has been disbursed to 222 depositors during 10/2007, Rs.13,09,137/- to 34 depositors during 11/2007, Rs.9,72,138/- to 8 depositors during 12/2007.

 II. Accused Details: -

S.No.

Name of accused arrested

Name of the accused obtained A/B

 

1.

S.Manohar

1.

T.S.Balasubramaniam

2.

M.Jayashree

2.

B.Chitra

 

 

3.

S.Shanmugam

 

 

4.

S.Balachandar

 

 

5.

S.Nagarathinam

 

 

6.

S.Usha

 

 

7.

S.Geetha

 

 

8.

Harish Narayanan

 

 

9.

C.Velyautham

 

 

10.

S.Balu

 

 

11.

N.Ramachandran

 

 

12.

G.Viswanathan

 

 

13.

S.Sundaresan

 

 

14.

R.Baskar

 III. High Lights

1.    Coimbatore EOW II Cr.No.07/2001, U/s.5 of TNPID Act.

2.    Coimbatore EOW II Cr.No.08/2001, U/s.5 of TNPID Act.

3.    Coimbatore EOW II Cr.No.09/2001, U/s.5 of TNPID Act.

4.    Coimbatore EOW II Cr.No.10/2001, U/s.5 of TNPID Act.

5.    Coimbatore EOW II Cr.No.11/2001, U/s.5 of TNPID Act.

6.    Coimbatore EOW II Cr.No.10/2002, U/s.5 of TNPID Act.

7.    Total amount involved: Rs.4, 94, 88,650/-.

8.    Amount refunded by the company: Nil.

9.    Balance Amount: Rs.4, 94, 88,650/-.

10.                       Total no. of depositors: 680

11.                       Police complaints: Rs.4, 94, 88,650/- (680 depositors).

 Details of cases registered against Sowdambika Group of Firms in other district including Coimbatore: -

Name of the District

No. of cases

No. of depositors

Amount involved

Coimbatore

06

680

4,94,88,650/-

Trichy

01

86

66,04,500/-

Salem

01

35

23,67,000/-

Madurai

04

47

16,52,550/-

TOTAL

12

835

5,97,64,350/-

 IV. Efforts taken by EOW-II: -

 1.     The 6 cases have been charged before the Special Court, TNPID Act and taken on file in CC.Nos.03/2004,  04/2004,01/2004, 06/2004, 05/2004 and 02/2004 respectively.
 2.      As per the orders of the Honourable High Court of Madras Rs.65 lakhs have been paid to the depositors at the rate of 10% to 650 depositors.
 3.      On 08.02.2007 the Chief Justice of High Court has permitted the Interim Administrator Miss. Mala the Registrar High Court, Vigilance to receive a sum of Rs.5 Crores from the Managing Director of Sowdambika Group of Finance and the amount has been deposited with Indian Bank, High Court in short time deposit.
 4.       The amount has been deposited by the Managing Director of the finance accordingly.
 5.       The Administrator has permitted to release and disburse the interest at the rate of 9% till the date of maturity or 20.11.2001 whichever is earlier.
 6.       The Administrator has making arrangements and preparing list through an Auditor for repayment.
 7.       The Administrator has published the above details in Newspapers.

 V. Details of property: -

 1.         Firstly 12 properties worth Rs.3, 23, 25,000/- have been attached in GO.Ms.No.182/2002, dated: 06.03.2002.
 2.         Secondly 30 properties worth Rs.4, 43, 80,000/- have been attached in GO.Ms.No.363/2002, dated: 29.04.2002.
 3.         Thirdly 16 properties worth Rs.3, 28, 27,726/- have been attached in GO.Ms.No.880/2002, dated: 23.09.2002.
 4.         Fourthly 5 properties worth Rs.1, 27, 27,100/- have been attached in GO.Ms.No.567/2003, dated: 25.06.2003.

 VI. Latest Development: -

           Aggrieved by the Madras High Court Division Bench order dt. 28.08.2007 for release of two properties of the accused, one Panneerselvam, president of Sowdambika group of depositors and Chits subscribers welfare association preferred applications before the Hon’ble Supreme Court in SLP No.12540 to 12542/09 and obtained stay order on 27.03.2010.   As such the matter stands still.  Since the administrator is the main respondent in the said matter,  the G.P. has opined that the Administrator has to file counter in this regard since the properties are under his custody.  The administrator has sent counter affidavit to his counsel at New Delhi for filing it in the Supreme Court of India in the said SLPs, during last week of February 2011. So far not yet listed.

Present Stage of the case. 

The criminal cases are stayed by the Hon’ble High Court till the Administrative proceedings are over. Mr.C.Franco Louis, Advocate & Notary Catholic Center, Annex, Ist Floor, 108, Armenian Street, Chennai-1 is the present  Administrator of Sowdambika Group of companies, Coimbatore,. It is ascertained that the accused did not remit a sum of Rs.4.51 Crores as ordered by the High Court. Action has been taken by the Administrator in this regard. The criminal cases are formerly posted to 11.07.2011 for further proceeding in the special court under TNPID Act cases Coimbatore

 VII. Request to Depositors:-

 For further enquiry regarding the case details please contact: -

Tr.R.Mothilal,
Dy. Supdt. of Police,
EOW II, Coimbatore.
Phone: +91 – 9442064995.