Madras Motor Finance and Guarantee Company Ltd.

 I. GIST OF THE CASE:
    Two criminal cases were registered against the Chairman and Director of the company by Chennai City Police, CCB. As per the orders of the Honourable High Court of Madras the company was liquidated on 26.04.1996.

 II. ACCUSED DETAILS:

    Totally 10 accused are involved in these cases, of which two accused namely 1. S.Sukumar and 2. Kazim Razvi were arrested. Accused 3. T.Palanivelu, 4. Salai Kadambamani, 5. N.Ponnusamy, 6. Rajan Isaac, 7. S.Jayaraman and 8. V.Ganesan obtained Anticipatory bail. Accused 9. M.V.Ramachandrasn and 10. P.Rajarathinam are absconding and settled abroad.

 III. HIGH LIGHTS:

• X.Cr.No.132/1996, U/s.409 & 420 IPC and EOW II Cr.No.16/2002, U/s.409, 420  & 120 (b) IPC.
• Total amount defaulted: Rs.41 Crores
• Amount refunded by the company: Rs.21.77 Crores @ 50%.
• Total no. of depositors: 60, 000.
• Police complaints: Rs.41 Crores (380 depositors).

• The Company Court of Madras High Court approved a scheme of repayment of the depositors of the Madras Motor Finance in C.P.Nos.73 to 77 of 2006 dated: 10.04.1996, on a compromise petition at the rate of 50% of the principal amount.

 IV. EFFORTS TAKEN BY EOW: -

 1.  Investigation completed and charge sheet filed in two cases during 2002 and 2005 and taken on file in CC.Nos.11460/2002 and  15230/2005 and pending trial.
 2.  Extradition proposal is being initiated against the absconding accused through Interpol, New Dehi.
 3.  EOW is taking steps for preferring appeal petition against the order of the Honourable High Court praying for full repayment to the depositors.

 V.  Latest Development:
    During this month an amount of Rs.5,20,000/- has been paid to 78 depositors. Appeal against the order of the Honorable High Court is being pursued. 

 VI. REQUEST TO THE DEPOSITORS:

    For further information the depositors are requested to contact: