Madras HC orders interim attachment of properties of Mylapore Hindu Permanent Fund Nidhi Ltd, its MD Devanathan Yadav

The Madras High Court has ordered interim attachment of the properties of Mylapore Hindu Permanent Fund Nidhi Limited (MHPFNL), its arrested Managing Director Devanathan Yadav, and other individuals involved in reported default of ₹557 crore to over 4,808 depositors.

The Madras High Court has ordered interim attachment of the properties of Mylapore Hindu Permanent Fund Nidhi Limited (MHPFNL), its arrested Managing Director Devanathan Yadav, and other individuals involved in reported default of ₹557 crore to over 4,808 depositors.

Justice P. Velmurugan passed the order on a writ petition filed by Mylapore Hindu Permanent Fund Investors and Depositors Welfare Association, represented by its president M. Sathish Kumar. The association had sought a direction to the Home Secretary to consider its plea for interim attachment.

After ordering notices, returnable in four weeks, to the Home Secretary and the defaulters, on the main writ petition, the judge passed an order for attaching the properties in the interregnum “considering the substantial amount of public money involved and the urgency of the matter.”

In his affidavit, Mr. Kumar told the court that MHPFNL had a long and credible history of having successfully operated for over 150 years and by having garnered deposits to the tune of crores of rupees with no disputes or issues until 2017 when Mr. Yadav assumed office as its Managing Director.

Mr. Yadav, along with the members R. Gunaseelan and D. Magimainathan, assured thousands of depositors of a high rate of interest for their deposits and obtained significant investments from people who had a trust over the long-standing legacy of MHPFNL, the deponent said.

However, in February 2024, MHPFNL suddenly stopped repaying the matured fixed deposits and did not pay even the interest for the other deposits. The default led to numerous police complaints and registration of a criminal case by the Economic Offences Wing in Chennai.

The First Information Report (FIR) was registered under the provisions of the Bharatiya Nyaya Sanhita, the Banning of Unregulated Deposit Schemes Act of 2019, and the Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act of 1997, and the three individuals were arrested on August 13.