Recently, the Madras High Court has granted interim bail to the Managing Director of a financial service company accused in a massive financial fraud involving public deposits exceeding ₹600 crores. The bail was granted with stringent conditions, balancing the interests of thousands of affected depositors with the need to facilitate repayment.
The company allegedly diverted public deposits collected through various schemes and defaulted on repayments. The accused, in custody for over a year, argued that the defaults were largely due to the pandemic-induced crisis, which caused premature withdrawals and panic among depositors. He assured the Court of his intent to liquidate assets worth over ₹600 crores to compensate depositors.
The prosecution and victim-intervenors opposed bail, claiming that several assets were overvalued, encumbered, or not owned by the accused. Allegations also included fraudulent practices such as creating fake loans using depositors’ KYC details. Concerns were raised that granting bail could enable the accused to abscond or interfere with the trial.
The Court observed that prolonged custody had not resulted in meaningful relief for depositors, and that incarceration could further diminish asset value and delay repayment. Interim bail was thus permitted with strict safeguards: surrender of passport, restrictions on property transactions, periodic court reporting, and a mandate to deposit a substantial sum within a fixed timeline.
The Court clarified that non-compliance with these conditions would attract legal consequences, including fresh proceedings. The matter will continue to be monitored to ensure depositors’ interests are protected while securing the accused’s presence for trial.
Case Title: T. Devanathan Yadav vs. State Of Tamil Nadu
Case No.: Crl.O.P.No.18872 Of 2025
Coram: Justice G.Jayachandran
Counsel For The Petitioner: Sr. Adv. S.T.S. Murthy, Senior Counsel For Mr. R. Hari
Counsel For The Respondents: App E.Raj Tilak,
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