MADURAI: Investors in the alleged Neomax financial scam in Tamil Nadu have urged the state government to intervene and accelerate the investigation by the Economic Offences Wing (EOW). They allege that the probe into the suspected ₹10,000 crore financial fraud is progressing at a very slow pace. Investors claim that around 85,000 people have been affected, with many having invested their lifetime savings in the real estate company and its group entities. Despite action having been initiated, they say most investors have not yet recovered their principal amounts or the returns they were expecting.
During a media interaction in Madurai on Thursday, investors said delays in the investigation and identification of properties allegedly linked to the case had intensified their financial difficulties. A significant number of affected investors are reportedly above 60 years of age. For many of them, the money invested was not merely an additional source of income but a financial safety net for their post-retirement years.
Investors said the continued non-recovery of their money has created difficulties in meeting routine household expenses, medical needs and other essential family obligations. They have now sought stronger government intervention to ensure that the investigation and recovery process moves forward without further delay.
Claim of 85,000 Affected Investors
According to the investors, around 85,000 people have been affected by the Neomax case, while the alleged financial fraud is estimated at approximately ₹10,000 crore. These figures are claims made by the investors, and the actual financial loss and number of affected people will become clearer once the investigation establishes the relevant facts.
The investors said the existing EOW personnel handling the case are also responsible for investigating other cases assigned to their unit. They allege that the limited manpower has slowed the process of tracing properties, examining documents and taking steps to attach assets allegedly connected with the case.
Investor A Sivatharshini said many people had invested their lifetime savings in the company and that a large number of affected investors were above 60 years of age. She urged the government to make special arrangements considering the scale of the alleged financial fraud and the difficulties being faced by investors.
Demand for Dedicated SP and Special Team
Investors have demanded the appointment of a police superintendent (SP) exclusively for the Neomax investigation. They have also sought a dedicated team with sufficient investigators and supporting personnel so that the case does not suffer delays because officers are simultaneously handling other investigations.
According to the investors, identifying and securing properties allegedly acquired or held through the disputed funds is critical to the recovery process. They believe that timely identification and attachment of such assets could improve the prospects of recovering investors’ money.
They also expressed concern that prolonged delays could complicate the process of tracing assets and financial transactions. Investors therefore want the authorities to accelerate the identification, verification and attachment of properties linked to the case.
Investors Highlight Growing Financial Distress
Another investor, A Roshan Khan, a retired government employee, demanded that the trial proceedings be expedited. He said several investors who have been unable to recover their investments and expected profits are struggling to meet expenses related to healthcare and family needs.
Investors also opposed granting bail to the accused and urged the court to consider the seriousness of the allegations and the concerns of affected investors. However, any decision regarding bail will be taken by the court based on the applicable legal provisions and facts presented during the proceedings.
Alleged Promise of 12% to 30% Returns
Neomax Properties Private Ltd and its group companies have been accused of collecting lakhs of rupees from investors in the name of real estate and plot development projects. Investors allege that they were promised returns ranging from 12% to 30% on their investments.
Attracted by the promised returns, several people allegedly invested their savings in the company. Investors claim that the promised payments were subsequently not made as expected, leaving their money stuck.
For the affected investors, recovery of their principal investment has now become the primary concern. They are seeking effective action to identify assets, trace the movement of funds and recover money through the legal process.
Pressure Mounts for Faster Investigation
Investors acknowledge that some action has already been taken in the case but maintain that it has been inadequate compared with the scale of the alleged fraud. They are demanding faster identification and attachment of properties, detailed scrutiny of financial transactions and effective steps to facilitate recovery of their investments.
The EOW is currently investigating the case. The actual scale of the alleged fraud, the final number of affected investors and the status of assets connected with the case are expected to become clearer as the investigation progresses.
With investors continuing to press for government intervention, pressure is mounting on the state authorities and the investigating agency to strengthen the probe with a dedicated team and adequate manpower and expedite the process of tracing assets and recovering investors’ money.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
