A private company director in Coimbatore has been sentenced to 10 years in prison for defrauding 387 investors of Rs 15.81 crore. The court also imposed a fine of Rs 15.91 crore to be distributed among the victims.
Coimbatore: The Managing Director of a private company in Coimbatore has been sentenced to 10 years imprisonment for defrauding investors of Rs 15.81 crore. The Special Court for Protection of Tamil Nadu Investors' Interest (TNPID) also imposed a hefty fine on the accused.
The company, operating under the name Mullai Group of Companies, was located on the 7th Street of Tatabad in Gandhipuram, Coimbatore. It advertised lucrative returns, promising Rs 10,000 monthly interest for every Rs 1 lakh invested. This scheme attracted numerous investors who entrusted their money to the company.
However, the company failed to pay the promised returns, leading to shock and disappointment among the investors. In 2019, the aggrieved investors filed a complaint with the Economic Offences Wing (EOW) in Coimbatore.
Subsequent police investigation revealed that the company had collected a total of Rs 15,81,35,000 from 387 investors and defrauded them. The Managing Director of the company, Kurinji alias Kurinjinathan (42) from Mettur, Salem district, was charged in the case. Additionally, four employees - Kathirvel, Annadurai, Sathiyamoorthy, and Arunaremi - were also booked.
The case was heard at the Special Court for Protection of Tamil Nadu Investors' Interest (TNPID) in the Coimbatore Integrated Court Complex. On August 30, Judge Senthilkumar delivered the verdict.
The court sentenced Kurinjinathan to 10 years imprisonment and imposed a fine of Rs 15,91,80,000. The judge also ordered that this fine amount be distributed proportionately among the 387 affected investors.
The four employees - Kathirvel, Annadurai, Sathiyamoorthy, and Arunaremi - were acquitted of all charges.
This case serves as a stark reminder of the risks associated with high-return investment schemes and the importance of due diligence before investing.
The company, operating under the name Mullai Group of Companies, was located on the 7th Street of Tatabad in Gandhipuram, Coimbatore. It advertised lucrative returns, promising Rs 10,000 monthly interest for every Rs 1 lakh invested. This scheme attracted numerous investors who entrusted their money to the company.
However, the company failed to pay the promised returns, leading to shock and disappointment among the investors. In 2019, the aggrieved investors filed a complaint with the Economic Offences Wing (EOW) in Coimbatore.
Subsequent police investigation revealed that the company had collected a total of Rs 15,81,35,000 from 387 investors and defrauded them. The Managing Director of the company, Kurinji alias Kurinjinathan (42) from Mettur, Salem district, was charged in the case. Additionally, four employees - Kathirvel, Annadurai, Sathiyamoorthy, and Arunaremi - were also booked.
The case was heard at the Special Court for Protection of Tamil Nadu Investors' Interest (TNPID) in the Coimbatore Integrated Court Complex. On August 30, Judge Senthilkumar delivered the verdict.
The court sentenced Kurinjinathan to 10 years imprisonment and imposed a fine of Rs 15,91,80,000. The judge also ordered that this fine amount be distributed proportionately among the 387 affected investors.
The four employees - Kathirvel, Annadurai, Sathiyamoorthy, and Arunaremi - were acquitted of all charges.
This case serves as a stark reminder of the risks associated with high-return investment schemes and the importance of due diligence before investing.