In a move that could provide partial relief to thousands of investors who were duped by Erode-based Susi Emu Farms India (Pvt) Ltd, an emu contract marketing company, the State Home Ministry has ordered attachment of the firm’s properties, including a luxury car, land holdings and cash deposits.
The company, owned by M S Guru, had pioneered the concept of emu contract farming in Tamil Nadu. After luring depositors to invest in the range of `1.5 lakh upwards for raising half-a-dozen emu chicks on a “buy back” contract with an attractive monthly incentive, the firm had gone bust last year.
Following this, several other emu and country chicken contract firms, which were started on the Susi model, had wound up operations in western Tamil Nadu.
In a gazette order dated April 10, the Home Department has issued an ad-interim order attaching movable and immovable properties standing in the name of M S Guru and the firm’s sister concerns. The attachment has been made as per the provision of Section 3 of the Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act, 1997 (TN Act 44 of 1997).
As per the Act, the properties can be subsequently liquidated under the directions of the TANPID Court.