₹990 crore recovered from defaulted financial firms in last 10 years: RTI reply

Over the past 10 years, the Economic Offences Wing (EOW) CID police have registered 616 financial fraud cases across the State and arrested 3,056 persons. However, only ₹990.28 crore has been recovered so far, an RTI reply has disclosed.

As many as 5,79,840 investors have lost money in such schemes, but only a small portion has been returned to them. According to the RTI response, the cases were registered under provisions of the Tamil Nadu Protection of Interests of Depositors (Financial Establishments) Act, 1997, the Banning of Unregulated Deposit Schemes Act, 2019, the Indian Penal Code, and other relevant laws.

The reply further stated that as of November 2025, the EOW had arrested 3,056 accused in financial fraud cases. The wing has so far recovered ₹990.28 crore from defaulters and distributed it to 5,79,840 depositors who lodged complaints over the last decade.

The roots of such frauds in the State date back decades. In July 1996, the Central Crime Branch of the Chennai City Police began receiving a wave of complaints against Sneham Finance and its 20 subsidiaries for defaulting on fixed deposits collected from the public. The firms allegedly mobilised about ₹10 crore from nearly 6,000 depositors.

Soon after, the CCB investigated the Eswari Group, which reportedly cheated nearly 12,000 investors of ₹27.5 crore. Similar frauds by firms such as Anubhav, GNS Nidhi, Devi Gold House, Royapettah Benefit Fund, Alwarpet Benefit Fund, MCC Finance Ltd., and Ramesh Cars followed, collapsing one after another and leaving depositors stranded.

With victims flooding the CCB, voluminous records were seized, but cases were largely pursued only under IPC provisions related to cheating and fraud.

Against this backdrop, the State government enacted the Tamil Nadu Protection of Interests of Depositors (Financial Establishments) Act in 1997 to safeguard investors and provide for punishment of up to 10 years for offenders. Tamil Nadu became the first State in the country to enact such a law. A special court was also constituted to ensure speedy trials.

As the Central Crime Branch and local police lacked specialised expertise to probe such offences, a dedicated unit — the Economic Offences Wing — was formed and began functioning in January 2000.

The EOW has since registered cases against several firms, arrested those involved, seized gold jewellery and vehicles, and frozen multiple bank accounts and properties linked to the accused. The wing now has offices in 34 of the State’s 38 districts, with over 400 personnel deployed.

Between 2015 and 2025, 179 cases were reported and 682 accused were arrested in Chennai. During this period, ₹592 crore was recovered, benefiting 5,23,305 depositors.

In several districts — including Tiruvallur, Tiruvannamalai, Ranipet, Ariyalur, Pudukkottai, Thanjavur, Krishnagiri, Nilgiris, Ramanathapuram, Sivaganga, Tenkasi, Theni, and Thoothukudi — investors are yet to receive refunds.

Notably, in Thoothukudi and Ranipet districts, no financial fraud case was registered by the EOW between 2015 and 2025.

Published – February 14, 2026 03:59 pm IST