Neomax fraud case: More info sought from EOW

MADURAI: The Madurai bench of Madras High Court on Wednesday directed the Economics Offences Wing to submit a comprehensive report detailing actions taken in the Neomax financial fraud case.

The petitioner M Gauthami, one of the investors from Thanjavur, stated that Neomax Properties Private Limited was functional in different names with over 20 branches to offer high interest rates to investors across Tamil Nadu.

But the firm defrauded the investors and swindled thousands of crores. The petitioner was one of the investors enticed by the high-interest rate and invested Rs1 crore. However, the firm neither offered the promised interest rate nor provided lands to the investors. Over a hundred investors, who lost their money after being cheated, lodged complaints seeking action, and a few directors and agents of the firm were arrested. But, the key accused were out on bail.

Earlier, the EOW police, Madurai in June registered a case under Sections 406, 420 r/w 34 of the IPC and 5 of the TNPID Act against Veera Sakthi, director of Neomax and others for cheating several investors by promising them the high rate of interest up to 30 percent on invested money.

Citing these, the petitioner suspected whether the investigating officers from EOW connived with those who indulged in the scam since there was a delay in arresting some key accused. Hence, the CBI should investigate.

Meanwhile, the counsel of Neomax said key office bearers of the firm including Veera Sakthi and Balakrishnan were arrested. Moreover, assets worth over Rs 25 crore were identified and several bank accounts were frozen.

Justice KK Ramakrishnan, after the hearing, questioned the EOW on the action taken in the case so far and the future course of action. The Judge also sought complete details about the firm, the total number of investors, property seized, and its value. The case was adjourned to December 18.