Tue Sep 02 18:59:13 UTC 2025: **Summary:**

The Madras High Court has reserved its decision on a bail petition filed by T. Devanathan Yadav, the former chairman of Mylapore Hindu Permanent Fund Nidhi Limited. Yadav has been in jail since August 2024, accused of defaulting on ₹618 crore to 5,600 depositors. The court questioned the effectiveness of keeping Yadav incarcerated if it doesn’t lead to the recovery of the money owed to the depositors. Yadav’s counsel argued that his client had disclosed all assets, but the Economic Offences Wing (EOW) had undervalued them. The prosecution argued that Yadav had not fully disclosed business details and that the company’s properties had devalued. The court also expressed concern that sealing the company would only benefit borrowers, not depositors, and suggested appointing an administrator to collect the dues.

**News Article:**

**Madras High Court Weighs Bail for Ex-Chairman in ₹618 Crore Nidhi Scam**

**CHENNAI – September 3, 2025** – The Madras High Court has reserved its order on a bail application filed by T. Devanathan Yadav, the former chairman-cum-managing director of Mylapore Hindu Permanent Fund Nidhi Limited, accused of defaulting on ₹618 crore to approximately 5,600 depositors. Yadav has been imprisoned since August 2024 in connection with the alleged financial irregularities.

Justice G. Jayachandran expressed reservations about the continued detention of Yadav, questioning whether it would effectively aid in the recovery of funds for the affected depositors. The court noted the apparent lack of progress by the Economic Offences Wing (EOW) in liquidating assets to reimburse the depositors.

Defense counsel, S.T.S. Moorthy, argued that Yadav had fully disclosed all assets owned by himself and his family, but the EOW had undervalued them. The prosecution, led by Additional Public Prosecutor E. Raj Thilak, countered that Yadav had failed to provide complete transparency regarding the company’s operations and that the value of its properties had significantly depreciated.

The court also raised concerns about the EOW’s decision to keep the finance company sealed for over a year, suggesting that this action would ultimately benefit borrowers by hindering loan recovery efforts. Justice Jayachandran proposed the potential appointment of an administrator to oversee the collection of outstanding dues from borrowers.

The court will review all submitted records before issuing a final decision on the bail petition. The case highlights the challenges in recovering lost funds for depositors in financial fraud cases and the complexities of asset valuation and company management during investigations.

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