HC grants interim bail to company executives in Rs 1,137 cr cheating case

The Madras High Court Tuesday granted interim bail to the erstwhile directors of Disc Assets Lead India Limited in a Rs 1,137 crore cheating case against them.

A division bench comprising Justice M Sathyanarayanan and Justice N Seshasayee granted the relief to former managing director V Janarthanan and directors N M Umashankar and N Arun after they gave an undertaking to hand over the original title deeds of various properties to the court-appointed administrator Justice (retired) N Paul Vasanthakumar.

The bench also directed them to furnish a bail bond for Rs 25,000 each with two sureties and also with an assurance to extend co-operation with the investigating agency and to appear on every first working day of the calendar month until further orders.

The matter relates to alleged cheating of 12 lakh depositors of their investment to the tune of over Rs 1,137 crore by the Madurai-based Disc Assets, which was formerly into agricultural business, after offering farm land for purchase on instalment basis and assuring to maintain them.

The court had appointed Vasanthakumar, retired Chief Justice of the Jammu and Kashmir High Court, as the administrator of Disc Assets for taking over the properties of the company to settle dues of the depositors.