Government Objects to Commission in Neo-Max Fraud Case, High Court Ordered to File List of Investors
Madurai: The government has raised objections to the establishment of a commission, led by a retired judge, in the Neo-Max fraud case. As a result, the High Court has been instructed to provide a list of Neo-Max investors.
Neo-Max, a company based in Madurai, has reportedly swindled the public by collecting billions of rupees under the guise of providing additional interest. The Madurai Economic Offenses Division has registered a case and initiated an investigation into this scam. The company’s directors, including Palanichamy and Balasubramanian, have filed a petition in the High Court, requesting the establishment of a commission led by a retired judge to compensate investors with money and land involved in the Neo-Max case.
The company has provided customers with detailed information and issued receipts for deposits. Upon selling the land, it is registered in the customer’s name. The government has already granted approval for 2,249.565 acres of land (equivalent to 9 crore 79 lakh 89 thousand square feet) in 16 layouts located in South Tamil Nadu.
More than 15,000 individuals have already received land allocations, and 4 crore 12 lakh 65 thousand 276.35 square feet of land is ready for deed registration. The lands are spread across various districts. The company expressed its desire to resolve the issues faced by complainants by providing them with land. They argue that the establishment of a commission, overseen by a retired High Court judge, is necessary for this purpose. This stance was asserted in their petition.
The hearing for this petition took place before Justice Nagarjuna. The public prosecutor argued that the investigation into the Neo Max financial institution fraud case is still in its early stages and estimates it may take around 6 months to complete the trial. Thus far, 557 individuals have filed complaints. The primary directors and executives of the company are currently under arrest, and 9428 property details have been discovered. The public prosecutor deemed the establishment of a commission at this time as unnecessary.
On the petitioner’s side, the Economic Offenses Department possesses comprehensive information regarding the company. The police also have records of the investors, customers, lands, and houses involved. They further stated that money transactions and bank accounts have been frozen. Consequently, Neo-Max has been mandated to submit a complete list of investors in the Neo-Max Financial Company. The next hearing is scheduled for September, and the judge adjourned the case till the 27th.