EOW told to attach NEOMAX’s assets

MADURAI: The Madurai bench of Madras 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.

HC summons tourism secy for contempt of court

The Madras High Court summoned the principal secretary of Tourism, Culture, and Religious Endowments in a contempt case alleging a willful violation of the court’s order to stay the e-tender process of Diwali Crackers Fair - 2024 at Island Ground. Justice M Dhandapani heard the contempt petition moved by the Chennai Fire Works Dealers Welfare Association alleging that the authorities violated the interim order passed by the court and sought to punish the authorities. The petitioner contended that on September 13 the court issued an interim order directing the Department to stay the e-tender process for the Diwali Crackers Fair. The interim order was passed in a petition alleging that the e-tender process lacked transparency and benefitted certain individuals who are ineligible to bid, said the petitioner. However, on October 15, the department uploaded the letter stating that the tender was granted to the individuals alleged as ineligible bidders, despite the interim order, the petitioner submitted. After the submission, the judge directed the principal secretary of Tourism department, the managing director of Tamil Nadu Tourism Development Corporation, and other authorities to appear before the court.