Title: High Court Orders Arrest of Directors in Neo-Max Fraud Case
Madurai, Tamil Nadu – In a major development, the High Court has ordered the arrest of all directors associated with the Neo-Max scam within a month. The decision was made in response to a petition filed by Gautami, a Kumbakonam-based company, seeking the transfer of the case to the Central Bureau of Investigation (CBI).
The petitioner’s counsel argued in court that despite the magnitude of the fraud, the main culprits had not been taken into custody. Some of those arrested were even out on bail. The fraud is estimated to be worth thousands of crores of rupees. Moreover, the petitioner alleged that they had been receiving threats over the phone, further necessitating the transfer of the investigation to the CBI.
The public prosecutor countered by informing the court that 96 individuals had been implicated in the Neo-Max scam, and 11 directors had already been arrested. Among those apprehended were prominent directors Kamalakannan and Singaravelan. The ongoing investigation had led to the seizure of 9,500 vital documents. Additionally, a special task force was formed to track down and apprehend the remaining absconders. The prosecutor assured the court that the investigation was proceeding effectively.
However, the judge expressed dissatisfaction with the progress of the case, citing that only a fraction of the accused directors had been arrested so far. In a stern order, the judge instructed the police to arrest all the directors and confiscate their property documents within a month. Failure to comply would result in the transfer of the investigation to the CBI. Following the order, the judge adjourned the proceedings.
In a separate petition filed by Neo-Max directors Palanichamy and Balasubramanian, they requested the establishment of a committee led by a retired High Court judge to address the issue. The committee would aim to resolve the grievances of Neo-Max investors across Tamil Nadu. Justice Nagarjuna, who presided over the matter, suggested forming a state-level committee to ensure victims’ interests were protected. The judge clarified that the committee’s formation would not hinder the ongoing police investigation. The hearing was adjourned to allow the Chief Criminal Prosecutor to provide input on behalf of the state.
The Neo-Max fraud case has sent shockwaves throughout Tamil Nadu, as investors continue to reel from the financial losses they incurred. The courts’ latest interventions aim to expedite the investigation and ensure justice for the victims.