HC dismisses film producer’s plea to quash chitfund case

Madurai: Taking into account that the investigation was in the initial stage, Madras high court has dismissed the plea moved by film producer K E Gnanavel Raja who sought to quash two chit fund scam cases registered against him. One case was registered by Ramanathapuram Bazaar police and another by Madurai Economic Offences Wing (EOW) in connection with the fraud.

The prosecution case is that second accused Anand, who was known to complainant Thulasimanikandan, introduced him to first accused Neethimani who had a financial institution by name Bullion Fintech LLP. Believing the words of Neethimani and his wife Menaga (third accused) about cash incentives, Thulasimanikandan collected money from friends, relatives and public from Ramanathapuram and invested it in the company. Thulasimanikandan had mobilised Rs 3 crore including his own money between July 2018 and March 2020.

Since he stopped receiving interest for the deposited money from October 2019, the people who invested money started questioning him. When Thulasimanikandan sought return of the Rs 3 crore, the trio refused and threatened him. Based on his complaint, Bazaar police registered a case against the three. During investigation, the officials found out that the trio had financed film producers Muruganandam, 7G Siva and Gnanavel Raja, who were arrayed as fourth, fifth and sixth accused in the case.

Similarly, another woman who mobilised Rs 40lakh and had deposited in the film company had also lodged a complaint with the Ramanathapuram district crime branch. The case was subsequently transferred to Madurai EOW. Justice R Hemalatha observed that there has been a large network involved in the financial racket and many gullible investors had been taken for a ride by first to third accused.