N.VANJIMUTHU Vs. RAVI & COMPANY BANKERS

JUDGEMENT

(1.) The above said appeals and the review applications arise out of a dispute between the defaulted financial establishment and the purchaser of the attached property from the said financial establishment challenging the orders passed by the Special Court under Tamil Nadu Protection of Interest of Depositors (in Financial Establishment) Act 1997. Factual Matrix:

(2.) A financial institution under the name and style of M/s.Ravi & Company Bankers were running a financial institution in Anna Nagar, Dindigul who were involved in the business of collection of deposit amount for offering jewel loans and property loans with minimum interest. The said financial establishment had started a hotel under the name and style of Hotel Swagat at Dindigul in March 1992. In October 1999, complaints started pouring in from the depositors alleging default in payment of the interest amount and an F.I.R was registered in Crime No.14 of 1999 under Sec. 420 of I.P.C. on 4/10/1999. The case was transferred to Economic Offences Wing, District Crime Branch, Dindigul and it was renumbered as Crime No.2 of 2000.

(3.) According to the present appellant Vanjimuthu, the said hotel was leased out them in the early 2000 and they were in possession of the said premises and running the hotel. Due to various complaints, the Deputy Superintendent of Police, Economic Offences Wing, Dindigul included the offences under TNPID Act and the issue was referred to the Secretary to Government, Home Department for initiating appropriate proceedings.