Erode businessman gets 10 years jail, ₹ 2.40 crore fine in emu scam

The Special court for the trial of cases registered under the Tamil Nadu Protection of Interests of Depositors (TNPID) Act in Coimbatore on Wednesday sentenced the proprietor of an emu farm to undergo 10 years of imprisonment for duping customers of ₹ 2.39 crore.

Special Judge A.S. Ravi awarded the punishment to M.S. Guru alias Gurusamy (40), managing director of Susi Emu Farms India Private Limited based at Perundurai in Erode district.

Gurusamy started the firm in 2010 with its office on Raja Street, Perundurai, and introduced two schemes to customers.

Under the first scheme, the company promised to provide six emu chicks, feeds, erection of shed for their rearing, expense for veterinary care and insurance for an investment of ₹ 1.5 lakh. The company promised them of paying ₹ 6,000 per month for maintenance and an annual bonus of ₹20,000. The investors were also assured that they would get the initial deposit of ₹1.5 lakh after two years.

Under the second scheme, investors were promised of getting monthly returns of ₹ 7,000 and annual bonus of ₹ 30,000 for investment of ₹ 1.5 lakh. The firm assured of rearing care of emu chicks and returning the initial deposit of ₹ 1.5 lakh after two years.

A total of 96 customers invested ₹2,39,15,600 in the company which, however, failed to keep its promises.

One of the investors M. Selvam from Senthamangalam in Namakkal lodged a complaint with the Economic Offences Wing (EOW), Namakkal, in August 2012. A case was registered against Gurusamy, the company and seven persons associated with them.

The TNPID court, which acquitted the seven others, ordered Gurusamy to pay ₹ 2.35 crore out of the total fine of ₹ 2.40 crore to the investors who were defrauded. The court issued a non-bailable warrant against Gurusamy who did not appear before it on Wednesday.

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Printable version | Oct 20, 2021 7:26:19 AM |

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