The State government has attached properties of many emu farms that had defaulted on repayment of public deposits.
A number of government orders have been issued to this effect by the Home Department.
An important step in a long winding legal process under which the assets would be liquidated to repay the deposits, the State government’s move is likely to keep the hopes of depositors alive.
The government has invoked the provisions of its special law on protection of investors for the action. The properties attached included emu birds as in the case of Suthi Emu Farms. According to a GO, 220 emu birds of the company, whose total value is Rs. 6.60 lakh (at the rate of Rs. 60 per kg), were attached. These would be disposed of by the Competent Authority, Erode.
The attached properties of other companies, including Subasree Emu Farms and G1 Emu’s Zone India Pvt Ltd range from vehicles, immovable properties, air-conditioners and office furniture.
Thousands of people lost their hard-earned savings following the closure of the farms, many of which were located in the western districts of the State, particularly Erode.
One by one, a host of companies closed, starting in August last year. The first was Susi Emu Farms in Perundurai, a town in Erode district, which lured depositors with schemes under which it was claimed that the deposits would almost double in two years. Over the next few months, many more companies collapsed, resulting in a financial crisis for the depositors. Thousands of emus were abandoned, leading to the government stepping in.
The latest set of GOs, dated August 14, say that the government was of the view that the said financial establishment was unlikely to return the deposits. In order to protect the interest of depositors, ad-interim orders attaching the properties have been issued under the Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act, 1997.