Chennai: T. Devanathan Yadav, the second richest candidate from Tamil Nadu in the Lok Sabha polls, was arrested Tuesday morning for allegedly cheating depositors of Mylapore Hindu Permanent Fund Nidhi Limited, in Chennai.
Devanathan, the founder of Indhiya Makkal Kalvi Munnetra Kazhagam, is the chairman and managing director (CMD) of the 152-year-old non-banking financial institution (NBFC). He also owns a television channel in Tamil Nadu.
The Tamil Nadu Police’s Economic Offences Wing (EOW) has received 100-plus complaints from the depositors so far, alleging that Devanathan did not return their invested money even after the maturity period.
“We keep receiving complaints. As of now, over 100 people have filed complaints. It is said that there are over 5,000 people who have deposited their money to a tune of over Rs 500 crores and were waiting for the returns,” a senior EOW officer told ThePrint.
Based on the complaint, the EOW registered a case against Devanathan in Chennai on various charges including cheating. Police arrested him near Tiruchi when he was on the way to Pudukottai and he is being brought to Chennai for further inquiry.
Established in 1872, the Mylapore Hindu Permanent Fund Nidhi Limited boasts of over 5,000 depositors, most of whom are pensioners, housewives and senior citizens.
After AIADMK’s Ashok Kumar, who had declared assets worth Rs 661 crore, Devanathan, contesting on behalf of the BJP, came second with assets worth Rs 206 crore. He, however, came third in Sivaganga after Karti P. Chidambaram of the Congress, the winner, and Xavierdass A. of the AIADMK.
Meanwhile, BJP state president K. Annamalai said that he would stand by those who lost their money and that there was no doubt that every aggrieved person should get money back. “However, if this is also one of the actions to threaten the alliance partners of the BJP, who criticise the DMK government’s law and order situation, then, it is condemnable,” he said.
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How case unfolded
Though the NBFC was unable to return the depositors’ money since last December, it all came to fore only after the announcement of Devanathan’s candidature for Sivaganga in the general elections.
In the last week of March and first week of April, people started to throng the Mylapore Hindu Permanent Nidhi Limited to withdraw their deposits.
“For the last six months, they have been dragging their feet over giving the money and even if they give a cheque for the deposited money they are giving a post dated cheque, which is six months late. How do I accept it?” asked S. Lakshmi, whose parents have deposited money in the firm.
While Lakshmi’s mother has invested Rs 10 lakhs, her father has invested Rs 15 lakhs in the firm to get good returns.
“We never knew until this became an issue. My father did all the deposits. After we came to know he was contesting the election, we visited the firm only to learn that we were not alone as there were several others who had not got their money back,” Lakshmi alleged.
According to police, the demand to withdraw the deposits rose in December 2023. “Another finance company that was running in a similar name in Chennai was shut, and the depositors were left to fend for themselves. That led to the sudden increase in the demand to withdraw deposited money and the accused could not return all of the money,” the senior EOW officer said.
After allegations flew thick and fast against Devanathan, the Congress and the Communist Party of India (CPI) sought an inquiry into the cases being brought against the NDA candidate.
However, no action was taken against Devanathan at the time of the Lok Sabha elections. After the poll results were out in June, Devanathan was served notice to appear before the EOW for inquiry, according to the police.
(Edited by Tony Rai)
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