Devi Gold House and GNS Nidhi Ltd

I. Gist of the Case: -

Accused N.M.Karunakaran opened a jewellery shop in the name of “Devi Gold House” at T.Nagar and collected deposits to the tune of Rs.25 Crores and failed to repay to the depositors even after the matured date. A criminal case was registered against the directors of Devi Gold House by Chennai City Police on 10.07.1996, later transferred to EOW II Chennai on 13.04.2000 for further investigation.

II. Accused Details: -

Accused arrested	Accused obtained A/B
1. M.Karunakaran	1. Anantha Krishnan
2. Rajendran	2. Senthil
	3. Ramasamy
	4. Balu
	5. Badrinathan
	6. Gopalrao
	7. Jaishankar
	8. Sooriyanarayanan
	9. Rohinikumar
	10. Amutha

III. High Lights

1. Cr.Nos.758 and 968/96, U/s.120 (b), 409, 420, 506 (ii), Sec.3, 4, 5 & 6 of PCMCSB Act.
2. Total amount involved: Rs.25 Crores
3. Total No. of depositors: Rs.14,706
4. Police complaints: 70 depositors
5. Amount involved in Police complaints: Rs.1.42 Crores.
6. Amount settled: Nil

IV. Efforts taken by EOW-II

1. Investigation completed and charge sheet filed on 11.02.1997.
2. EOW assists the depositors association in their matters in the Honourable High court.
3. Requested the OL to take over the available assets for sale and refund the deposits along with GNS Nidhi deposits.

V. Details of Property: -

1.  Movable and immovable properties worth about Rs.1 Crore have been attached vide G.O.Ms.No.917, dt: 16.07.98 & G.O.Ms.No.554, dt:27.06.04 pending for Company Court orders.
2.  Motaithotam house worth Rs.10 lakhs (Attached).
3.  Tondiarpet Marriage hall Rs.2.5 Crores. [Interim injunction is in force for the above two properties and counter affidavit is under preparation      by DRO, Chennai] (Attached).
4.  Ashok Nager- Flats worth Rs. 25 Lakhs (Attached).
5.  Cash Rs.24 Lakhs is available with DRO.

VI. Latest Development: -

i.   In Devi Gold House two properties worth about Rs.3 Crores listed in GO.Ms.No.554/2004 i.e. House building and Kalyanamandapam at  Washermanpet were taken possession by the DRO/Competent Authority at Chennai on 07.05.2007. Case is pending trial.
 ii. In GNS Nidhi Ltd at present a sum of Rs.5 Crores is available with OL for disbursement. In the mean time depositor’s association of Devi Gold House have filed an affidavit before the Honorable High Court of Madras praying that the available money may be disbursed equally to the depositors of sister concern GNS Nidhi Ltd. The High Court has stayed the disbursement of the GNS Nidhi Ltd and directed the EOW II to file a status report for both the cases and is adjourned without mentioning the date. Case may be listed after vacation.

VII. Request to Depositors

For any further information on refund if required, the depositors may contact: -

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  I. Gist of the Case (GNS Nidhi Ltd)

             A criminal case was registered against the Directors of GNS Nidhi by Chennai City Police on 07.11.1996 and the case was transferred later to EOW II Chennai on 13.04.2000 for further investigation. N.M.Karunakaran opened the registered company in the name of GNS Nidhi and collected deposits to the tune of Rs.10 Crores and failed to repay the deposits even after the matured date.

  II. Accused Details

            Totally 19 accused involved in this case. In which accused namely M. Karunakaran  Managing Director, K. Soundararajan- Manager, Suresh-Manager, Manickam-Manager, Mahesh-Manager, Muralidharan-Manager and Jagan-Manager were arrested and the remaining accused namely Kumar-Worker, Subramani-Worker, Kalyanasundaram-Worker,Balasubramani- Worker, Ravichandran-Worker, Ramnathprakash-Worker, Murali-Worker, RenugaRamesh-Worker, Venkatesan-Worker, Lakshmanan- Worker, Stephen-Worker and Viswanathan-Worker had surrendered.

  III. High Lights

1. Cr.No.969/06 U/s.120(b), 409, 420, 506(ii) & Sec. 3,4,5 & 6 of PCMCBS Act.
2. Total amount involved: Rs.10 Crores
3. Total No. of depositors: 7, 718
4. Police complaints: 85
5. Amount involved in Police complaints : Rs.67.35 Lakhs
6. Amount from property sold: Rs.4.5 Crores
7. Amount settled: Nil
8. Official Liquidator has been appointed on the orders of High court during the year 1997.
9. Administrator Tr.R.SenthilKumar was appointed in the year 1999.
   Investigation completed and charge sheet filed in the year 1997.

   IV. Efforts taken by EOW II

1. EOW II assists the Official Liquidator, Administrator & Depositors Association on various High Court issues and also for speedy refund of deposits.
2. Requested the Official Liquidator to take over the available assets for sale and refund the deposits along with Devi Gold House deposits.

   V. Details of Property

1. One immovable property at No.128, Usman Road, T.Nagar, (Devi Gold Building) worth about Rs. 5.4 Crores (Sold).
2. Out of that a sum of Rs. 1 Crore given to RBF for the outstanding loan on the orders of the High court.
3. At present a sum of Rs. 5 Crores is pending with OL.
4. Cash seized Rs.3.4 lakhs.
5. Vehicle worth Rs.2.10 lakhs.

   VI. Request to Depositors

            For any further information on refund the depositors may contact.