Financial fraud case: EOW told to attach Madurai firm NEOMAX’s assets

MADURAI: The Madurai bench of the Madras High Court on Thursday refused to grant extra time and directed the Economics Offences Wing (EOW) to attach properties accumulated by NEOMAX, which is facing investigation in the financial fraud case.

A bunch of petitions seeking bail and anticipatory bail concerning the case came up for hearing before Justice D Bharatha Chakravarthy.

Many investors who lost their money after being duped lodged complaints seeking action and a few firm directors and agents were arrested. However, the key accused were out on bail.

Earlier, the EOW police, Madurai in June last year registered a case against Veera Sakthi, the director of NEOMAX and others for cheating several investors by promising them a high rate of interest up to 30 percent on invested money.

Several investors stated that NEOMAX Properties Private Limited was functional under different names with over twenty branches to offer high interest rates to investors across Tamil Nadu. But the firm defrauded the investors and swindled thousands of crores. It neither offered the promised interest rate nor provided lands to the investors.

Counsel on behalf of the state government submitted that properties accumulated by the NEOMAX were identified and steps were taken to attach the property.

However, the Additional DSP of EOW said a report that has been sent to the Home Secretary for approval before attaching the property is pending and hence sought additional time.

After the submission, the judge noted that enough time was already given to notify the government gazette for attaching the property and refused to grant more time. The Judge ordered to issue a Government Order on the attachment of property within October 19 and adjourned the case.

Further, he warned the Home Secretary and the Additional DSP of EOW should appear before the court if the GO was not notified in time.

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