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In July 1996
Central Crime Branch of the Chennai City 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 public
of Chennai and other places. Hundreds of people filed their complaints in
the Central Crime Branch, Chennai City.
These
unincorporated bodies collected about Rs.10 Crores from about 6,000
depositors and defaulted. Little later, the Central Crime Branch had to
handle another case against Eswari Group of
Finance Firms in which about 12,000 investors had to loose about Rs.27.5
Crores. The above frauds on public by unscrupulous financial institutions
and corporate continued one by one. Actions
against the frauds were taken only under IPC sections of cheating and
fraud.
As most of the financial institutions which collected deposits from
public and defaulted repayments were likely to escape from the clutches
of law, the Government of Tamil Nadu felt the
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 itself. 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 Special Court was also created by
the Government.
While 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 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.
As
the City Crime Branch and the local Police which were not equipped with
the expected 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.
In order to protect the interest of the depositors in Financial
Establishments, Government of Tamil Nadu
enacted the act "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.
(A separate wing in the police department
called Economic Offences Wing - II for investigating the cases against
the Non-banking Finance Companies and Unincorporated Financial
Establishments was created by the Government of Tamil Nadu
in G.O.Ms.No. 1697/99 on 24-12-99. The wing
started functioning from 01-01-2000 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. The above wing is functioning under an Supdt. of
Police at headquarters, Chennai and under Dy.Supdts.
of Police in all the Police district
headquarters except in the Commissionarates. In
total 1024 officers and men are deployed for this wing in the State. The
officers are trained in CBI academy at Gaziabad
and by RBI at RBI Staff College, Chennai. The wing is utilizing the
services of experts in Law, Accounting, Computer etc., during the course
of investigation.)
Status For the Year:-
Since
the establishment of Economic
Offences Wing - II {upto 31.07.11 },It has
registered 1475 cases against defaulted
financial institutions, out of which 128 cases are under
Investigation and 335 cases are pending trial. Further action was dropped
in 490 cases, 83 cases ended in conviction, 245 cases ended in acquittal
and 78 cases were transferred to the local Police.
In
these defaulted Financial Institutions, about 12,36,655
depositors have deposited a sum of Rs.2574.47 crores.
So far, a sum of Rs.1240.13 crores was repaid to
the 7,02,929 depositors from these financial
Institutions. The remaining amount of Rs.1334.34 crores, is yet to be
repaid.
Properties approximately worth Rs.1535.96 Crores are identified in these cases so far. Based 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.1535.96 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.
All efforts are being taken to liquidate the balance identified
properties worth Rs.1038.51 Crores, 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.,
ACHIEVEMENT OF
EOW-II:-
In the year 2011 Up to July an amount of Rs. 29.37 Crores
was refunded to 3766 depositors. The
refund position for the last Six years is given below:
|
Year
|
Amount Refunded
|
|
2005
|
Rs. 30.06 Crores
|
|
2006
|
Rs. 95.73
Crores
|
|
2007
|
Rs.118.28
Crores
|
|
2008
|
Rs.172.50 Crores
|
|
2009
|
Rs. 73.42 Crores
|
|
2010
|
Rs. 47.88 Crores
|
|
2011 { upto July }
|
Rs. 29.37 Crores
|
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