Hundreds of depositors of the Mylapore Hindu Permanent Fund Nidhi Limited have protested in Chennai, demanding faster recovery of money they say has been stuck for more than two years in an alleged financial fraud involving the 151-year-old institution.
The Mylapore Fund Aggrieved Depositors Association says more than 6,000 people are affected and claims over ₹700 crore remains unrecovered. Many of those who joined the September 21 protest outside Rajarathinam Stadium in Egmore were senior citizens who said the deposits represented retirement savings, medical funds and money accumulated over decades.
The association is demanding a fast-track court, a forensic audit of the fund’s accounts and faster attachment and liquidation of assets where legally permissible.
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Depositors say recovery has moved too slowly
The Economic Offences Wing of Tamil Nadu Police has been investigating the Mylapore Hindu Permanent Fund case since 2024.
T. Devanathan Yadav, the fund’s chairman and managing director, was arrested in August 2024 after depositors complained that matured deposits and promised interest were not being paid. Two other directors were also arrested during the investigation.
Early in the investigation, police said they had received 144 complaints involving around ₹24.5 crore.
The alleged exposure cited by depositors has increased substantially since then as more claims and records have been gathered. The association now says more than 6,000 depositors are affected and puts the amount involved at over ₹700 crore.
Those figures remain allegations and are subject to the ongoing investigation and court proceedings.
Senior citizens say lifetime savings remain inaccessible
For many depositors, the dispute is no longer simply about investment returns.
NDTV reported that an elderly depositor, Shanmugasundaram, had placed ₹68 lakh received from the sale of property into the fund after being attracted by interest rates higher than those offered by conventional banks. Another depositor, Devika, said she had invested ₹48 lakh to remain financially independent during old age.
Other families told reporters that they had depended on monthly interest from the deposits to pay for medicines and everyday expenses.
The depositors’ association says more than 40 investors have died while waiting for repayment, although that figure comes from the association and has not been independently verified by investigators.
The group says payment failures included bounced cheques, non-payment of matured deposits and stopped interest payments.
Fast-track court and forensic audit demanded
The association has asked the Tamil Nadu government to establish a special fast-track court so the case can be heard on a priority basis.
It has also demanded a forensic audit to trace where depositors’ money moved and identify businesses, individuals or assets that may have received funds from the institution.
A forensic audit goes beyond routine accounting.
It examines bank transfers, related-party transactions, asset purchases and other records to determine whether money was diverted, misused or transferred to connected entities.
Depositors say such an exercise could help authorities identify assets that may eventually be attached and sold through the legal process to fund repayments.
₹100 crore bail condition became part of court proceedings
The Madras High Court has previously focused on asset recovery while dealing with Devanathan Yadav’s bail.
In September 2025, the court granted him interim bail and directed him to mobilise ₹100 crore for deposit before the court dealing with Tamil Nadu Protection of Interests of Depositors Act cases. The court observed that prolonged incarceration by itself had not resulted in recovery for depositors.
Yadav later said he could not raise the amount because property documents were in police custody.
The High Court subsequently directed that he surrender after the interim bail period and said the EOW could arrest him if he failed to do so.
The depositors’ association has continued to cite the unfulfilled ₹100 crore condition while demanding faster recovery action.
Fund chief had contested 2024 Lok Sabha election
Devanathan Yadav also heads the Indhiya Makkal Kalvi Munnetra Kazhagam.
He contested the 2024 Lok Sabha election from Sivaganga as an NDA candidate on the BJP symbol and lost the election.
His political background is separate from the substance of the criminal case. The allegations concern his role in the management of the Mylapore Hindu Permanent Fund and remain subject to judicial proceedings.
The immediate concern for depositors is recovery.
They argue that even a successful prosecution will provide limited relief if assets are not traced, preserved and eventually converted into money that can be returned to investors.
What this means for you: Depositors in Nidhi companies or similar financial institutions should preserve deposit receipts, interest statements, bank records and maturity documents if repayments stop. In large collective defaults, asset tracing and court-supervised recovery can become as important as the criminal investigation itself.
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