Tue May 20 13:25:34 UTC 2025: Here’s a summary of the text and a news article version:

**Summary:**

The Madurai Bench of the Madras High Court is critical of the Economic Offences Wing’s (EOW) handling of financial fraud cases under the Tamil Nadu Protection of Interests of Depositors (TNPID) Act. The court emphasizes that the EOW’s role extends beyond simply registering FIRs to actively preventing fraud and ensuring victims receive their money back. The court highlighted that a very small percentage of victims have been repaid. The court noted that officers are not fulfilling their duty, and people are being exploited by fraudulent companies promising high returns. It urges the EOW to be more proactive in investigating companies offering unusually high interest rates and to streamline the process of seizing assets and disbursing funds to victims.

**News Article:**

**Madras High Court Slams EOW’s Ineffectiveness in Tamil Nadu Depositor Fraud Cases**

**MADURAI, May 20, 2025** – The Madurai Bench of the Madras High Court has expressed strong criticism of the Economic Offences Wing (EOW) for its lackluster performance in protecting depositors in Tamil Nadu from financial fraud under the TNPID Act. During a hearing concerning the Neomax financial fraud case, Justice B. Pugalendhi highlighted the EOW’s failure to adequately address the widespread exploitation of investors promising unrealistically high returns.

The court pointed out that despite the TNPID Act’s intent to protect vulnerable investors and recover their lost funds, less than 10% of the defrauded amount has been disbursed to victims. Justice Pugalendhi emphasized the government’s “moral responsibility” to ensure restitution for those affected by these schemes.

“The EOW officers are under the impression that they are supposed to act/prosecute only after a case was reported. They have to understand that they are also liable to prevent such offences,” the judge stated.

The court further stressed that the EOW has a duty to proactively investigate companies offering interest rates significantly higher than those prescribed by the Reserve Bank of India. This includes verifying their legitimacy and ability to deliver on promised returns. Despite the frequency of such fraudulent schemes, the court noted that many individuals continue to deposit money without due diligence.

While special courts have been established and provisions exist to seize assets and bank accounts, the court lamented that “A very few people have benefited out of this Act and got their money back. It appears mainly because of the outdated procedures.” The court concluded that the EOW must prioritize both prosecution and the recovery and disbursement of funds to victims, urging the agency to revamp its procedures to ensure that justice is truly served.

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