Chennai:
For Shanmugasundaram, well above 80, the Rs 68 lakh he deposited with the Mylapore Hindu Permanent Fund Nidhi was not just money in a bank account. It was the entire proceeds from the sale of his property. It was money he had hoped would give him some financial security in his old age. He chose the over 150-year-old institution because it offered an additional 2 per cent interest compared to banks. Today, he says, he is left with little but regret.
“I couldn’t save my sister-in-law who fought cancer. I couldn’t spend anything,” he said, speaking of the money that he could have used when his family needed it most. Shanmugasundaram was among thousands of depositors who said they lost their lifetime savings in what they alleged is a Rs 700-crore financial fraud involving the Mylapore Hindu Permanent Fund Ltd.
Hundreds of depositors, many of them senior citizens, took to the streets in Chennai recently demanding government intervention, speedy investigation and help in recovering their money.
The case centres on the Mylapore Hindu Permanent Fund Nidhi, which was headed by entrepreneur and politician Devanathan Yadav, who was arrested in connection with the case. He had contested the 2024 Lok Sabha election from Sivaganga as an NDA candidate on the BJP symbol. He led a small party of his own, called Indhiya Makkal Kalvi Munnetra Kazhagam (IMKMK). Court proceedings so far have included conditions relating to a Rs 100-crore deposit in connection with bail. The Madras High Court has also dealt with the fund’s failure to honour payments, with proceedings recording that payments had stopped from February 2024.
While the Economic Offences Wing is investigating, the depositors are now seeking a special fast-track court, a forensic audit of the fund’s accounts and a serious investigation into the alleged financial irregularities. They are also demanding attachment and liquidation of properties and assets, wherever legally permissible, so that the proceeds can be used to repay depositors.
According to the depositors’ association, at least 6,000 people are affected and more than 40 depositors have died while waiting for their money to be returned. For many, the deposits represented retirement savings, medical expenses and the financial independence they had carefully built over decades.
Devika, who lost Rs 48 lakh, said she had deliberately kept the money away even from her son because she wanted to remain financially independent. “I wanted to lead an independent, dignified life in my old age. I didn’t even leave this with my son. But this is daylight robbery. The government should investigate and do the needful for us to get back the money,” she said.
An 87-year-old depositor, who could barely walk as he joined the protest, said he and his wife had deposited Rs 5 lakh each after being offered higher interest for ‘super senior’ citizens. For them too, what was meant to provide security in their final years became a source of distress.
For Jayashree, a heart patient, the crisis also became a medical struggle. Her family lost Rs 10 lakh, and the monthly interest of around Rs 9,000 that they had depended on has stopped. “All gone! Life has become so difficult; we have no jobs. I need money now for my medicine,” she said.
Across the group of depositors, the pattern they described was similar: cheques were dishonoured, matured deposits were not returned, and interest payments stopped, leaving families struggling to meet everyday expenses.
