T. Devanathan Yadav, leader of Indhiya Makkal Kalvi Munnetra Kazhagam, has been arrested by the Economic Offences Wing of the Tamil Nadu police on the charge of cheating over 140 depositors of the Mylapore Hindu Permanent Fund Nidhi Limited, one of oldest non-banking finance firm in the city.
The firm had allegedly failed to return their investments after the maturity period, and give interest as promised. Two other directors — R. Gunaseelan and D.Mahimainathan — of the firm have also been arrested. The police said that over 140 depositors lodged complaints alleging Mr. Yadav and his company cheated them to the tune of over ₹24.5 crore.
Mr. Yadav was the candidate of the BJP-led National Democratic Alliance (NDA) in the Sivaganga constituency in the 2024 Lok Sabha election. He has been serving as the chairman and managing director of the firm from 2017. He is also the senior vice-president of Table Tennis Federation of India, and the chairman and managing director of Win TV.
Earlier, he was the president of Tamil Nadu unit of the Bahujan Samaj Party. He unsuccessfully contested in Assembly and Parliamentary elections.
One of the complainants alleged that depositors did not get the interest for the past six months or the matured amount from their deposits. The firm never allowed to get a preclosed amount — permitted according to Nidhi rules framed by the Reserve Bank of India. Under such circumstances, the complainant said that he had no other option, but to approach the Economic Offences Wing to recover the money.
The Economic Offences Wing booked Mr. Yadav under Sections of 409 (Criminal Breach of Trust), 420(cheating) read with 34 (Acts done by several persons in furtherance of common intention), Banning of Unregulated Deposit Schemes Act (BUDS Act), and The Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act.
Mr. Yadav and the others wll be produced before a special court for remand after interrogation.
M. Sathiya Priya, Inspector General of Police, Economic Offences Wing, told The Hindu, “We have received 144 petitions from depositors. We have duly scrutinised them. It is prima facie made out, and we have booked a case under three provisions of Indian Penal Code and other laws against the company and four others, including Devenanathan. Three have been arrested. Further investigation is on.”
