Economic Offences Wing (FIs)
In July 1996 Central Crime Branch of the Chennai City
Police had to handle a completely new type of complaints against Sneham
Finance. One Aravindhan who managed about 20 firms, defaulted in
repayment of fixed deposit collected from general public from Chennai
and other places. Hundreds of victims filed their complaints in the
Central Crime Branch, Chennai City.
unincorporated bodies collected about Rs.10 Crores from about 6,000 depositors
and defaulted. A Little later, the Central Crime Branch had to handle
another case against Eswari Group of Finance Firms in which about
12,000 investors were cheated to the tune of Rs.27.50 Crores. The
above frauds committed on public by unscrupulous financial institutions
and corporate bodies continued one by one. Actions against the accused
were taken only under IPC sections of cheating and fraud.
most of the financial institutions which collected deposits from public
and defaulted had the opportunity were likely to escape from the
clutches of law, the Government of Tamil Nadu felt the dire necessity of an Act to
protect the interest of investors and to punish the culprits with maximum
punishment of 10 years. Thus the Tamil Nadu Protection of Interests of
Depositors Act was enacted in the year 1997. Tamil Nadu is the first
state to enact such an act in the country. Further in order to conduct
speedy trial of these cases a
was also created by the Government.
hearing the company petitions in Anubhav case, the Hon'ble High Court
observed the necessity of involving experts in various fields like law,
accountancy, banking, shares, real estates, valuation, computer etc. in
the investigation of such huge frauds committed on public by corporate
and other bodies. The Hon'ble High Court had directed the Government to
create a separate investigating agency consisting of experts to
investigate such cases.
the City Crime Branch and the local Police were not equipped with the
necessary expertise in the investigation of such frauds, the Government
decided to create a separate wing for preventing and investigating
frauds on public by financial institutions. Thus the Economic Offences
Wing-II was formed and started functioning from 01-01-2000.
order to protect the interest of the depositors in Financial
Establishments, Government of Tamil Nadu enacted "Tamil Nadu
Protection of Interest of Depositor's (Financial Establishments) Act 1997".
Tamil Nadu is the first state to enact such an act in the country.
Several other states have now enacted similar Acts on the lines of the
Tamil Nadu Act.
separate wing in the police department called Economic Offences Wing –
II is formed to investigate cases against the Non-banking Finance
Companies and Unincorporated Financial Establishments by the Government
of Tamil Nadu in G.O. Ms.No. 1697/99 on 24-12-99. The wing headed by
the Inspector General of Police, Economic Offences Wing - II assisted
by a Superintendent of Police under the direct supervision of the Addl.
Director General of Police, Economic Offences Wing started functioning
from 01-01-2000. The above wing is functioning under an Supdt. of
Police at headquarters, Chennai and assisted Dy.Supdts. of Police in
all the Police district headquarters except in the
Commissionerates. The officers
are trained in CBI academy at Gaziabad and by RBI at RBI Staff College,
Chennai. The wing is utilises the services of experts in Law,
Accounting, Computer etc.,
For the Year (As on 01.10.2015):-
Offences Wing – II had registered 1798 cases against
the defaulted financial institutions, out of which 79 cases are under
Investigation and 473 cases are pending trial. Further, 570 cases were Further Action Dropped
(FAD), 69 Cases were Clubbed with main cases, 62 were referred, 107 cases
were ended in conviction, 250 cases were
compounded (as the defaulted have been fully settled to the depositors), 107 cases
were ended in
acquittal and 81 cases were transferred out to the other investigation
agencies on point of jurisdiction.
these defaulted Financial Institutions, about 14,97,618 depositors have
deposited a sum of Rs.4227.42 crores. So far, a sum of Rs.1425.87 crores was repaid to the 7,10,421 depositors (Full settlement) from
these financial Institutions.
on the proposals sent by the Headquarters and District Units the
Government have issued orders authorizing attachment of properties
approximately to the worth of Rs.1855.89 Crores. Attachment proposals
were not sent for some of the cases in which other agencies like Official
liquidator, Administrators and Official assignee have been appointed by
the Hon'ble High Court.
efforts are being taken to liquidate the balance identified properties
in the defaulted financial institutions and to get back the money from
the borrowers of the defaulted financial institutions by various
agencies like Official Liquidator of the Hon'ble High Court, Competent
Authority under TNPID Act, Administrators, Special Officers, Government
appointed Chairmen etc.,
the year 2014, an amount of Rs.23.44 Crores was refunded to 4789 depositors fully and partly
settlement to 764 depositors. The refund position for the last
Seven years is given below:
Rs. 73.42 Crores
Rs. 47.88 Crores
||Rs. 51.46 Crores
||Rs. 46.96 Crores
||Rs. 56.99 Crores
||Rs. 23.44 Crores
|2015 (upto September)
||Rs. 20.98 Crores