A special court looking into the financial irregularities of chit companies, has sentenced 23 directors of three Chit Companies to five years imprisonment each and slapped a total fine of Rs.1.44 crores on them.
The Proprietors of Mettur Cauvery Finance, Annai Cauvery Finance and Sree Cauvery finance which functioned in Mettur in Salem district have duped over 200 persons after collecting Rs.3.65 crores as deposits between 2005-2008. Following a complaint registered a one of the affected parties a case was filed on the directors of these chits fund companies.
The Arbitration court pronounced all the 23 Directors of chit fund companies guilty and sentenced them each to five years imprisonment.