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Special court sentences 23 persons for defrauding investors

Press Trust of India  |  Coimbatore 

A special here today sentenced 23 persons to five years in jail each for duping investors of of Rs 3.6 crore.

The prosecution case was that three private financiers - Mettur Finance, Sree Cauveri and Annai - had defrauded a large number of investors, without paying the interest and returning the amount collected from them to the tune of Rs 3.6 crore between 2005 and 2008.

After investors approached the court, charge sheets were filed against 24 partners of these companies and the case was heard by Special set up under the Protection of Interest of Depositors (in Financial Establishments) (TANPID).

Special Judge K Babu sentenced 23 convicts to five-year jail term each and also imposed fines on them. One accused had died during the trial.

The judge directed the companies to pay Rs 1.4 crore to the depositors and Rs 31.60 lakh to the as penalty.

Promising 15 per cent interest for the per month, the Mettur-based companies had collected the amount. The companies stopped paying the interest after a few months, following which investors approached the

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 19 2017. 22:32 IST