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: -

 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: -

 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: -

            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 October 2007, Rs.13,09,137/- to 34 depositors during November 2007, Rs.9,72,138/- to 8 depositors during December 2007.

 VII. Request to Depositors

 For further enquiry regarding the case details please contact: -