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.
These 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 of about Rs.27.5 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.
As 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 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 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.
As 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.
In 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.
A 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.,
Status For the Year:-
The Economic Offences Wing – II had registered 1714 cases so far against the defaulted financial institutions, out of which 93 cases are under Investigation and 435 cases are pending trial. Further action was dropped in 606 cases, 102 cases ended in conviction, 234 cases were compounded (Amount fully settled to the depositors), 99 cases ended in acquittal and 81 cases were transferred to the other investigation agencies.
In these defaulted Financial Institutions, about 13,94,897 depositors have deposited a sum of Rs.3988.83 crores. So far, a sum of Rs.1373.23 crores was repaid to the 7,03,130 depositors (Full settlement) from these financial Institutions.
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.1786.96 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 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:-
During the year 2013 an amount of Rs.56.99 Crores was refunded to 7174 depositors fully and part settlement to 1,45,478 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. 06.99 Crores