CHENNAI: CPM state secretary P Shanmugam on Wednesday urged Chief Minister M K Stalin to intervene and ensure swift justice for thousands of depositors affected by the alleged Rs 450-crore fraud in the Mylapore Hindu Permanent Fund Nidhi Limited (MHPFNL), a 150-year-old financial institution.
In a letter to the CM, Shanmugam said former managing director Devanathan Yadav had allegedly created nearly 30,000 fake gold loan transactions after taking charge in 2016, diverting funds and acquiring properties in the names of his family members.
The fund primarily catered to street vendors, auto drivers, retired government employees and low-income families, many of whom lost their life savings, he said.
Though over 6,000 depositors filed complaints, the Economic Offences Wing has included only 144 cases in its charge sheet and accounted for just Rs 33 crore of the alleged fraud, raising concerns about the quality of the investigation, Shanmugam said.
While Devanathan was granted parole with conditions to remit Rs 100 crore and liquidate assets to repay depositors, he failed to comply and has since been remanded again.
The CPM has sought the constitution of a special court, inclusion of all 6,000 complainants in the charge sheet, a forensic audit of the fund’s accounts, and measures to prevent the accused from evading justice.
It also urged the government to provide interim relief to senior citizens and poor depositors who have been left devastated by the decade-long litigation.