By Mohamed Imranullah S

Copyright thehindu

Keeping a financier in jail for years together, that too after sealing his business premises, may not help in recovering the dues he owes to the depositors, the Madras High Court observed on Monday (Septembner 15, 2025) and granted interim bail to T. Devanathan Yadav for mobilising ₹619 crore due to around 5,000 depositors of Mylapore Hindu Permanent Fund Nidhi Limited (MHPFNL).

Justice G. Jayachandran granted the interim relief on a condition that the petitioner must first mobilise ₹100 crore on his own and deposit it with a special court for cases booked under the Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act, 1997. The judge made it clear the deposit must be made on or before October 30, 2025.

After making the deposit, the petitioner must voluntarily surrender before the special court on October 31, 2025, and the latter must remand him in judicial custody. Further, during the interim bail period, he must make all endeavours to find buyers for the 76 immovable properties which he had valued at ₹633.97 crore and submit a proposal to the special court.

Having served as the Managing Director of MHPFNL, the petitioner had listed out those 76 immovable properties in an affidavit filed through senior counsel S.T.S. Moorthy. However, Additional Public Prosecutor E. Raj Thilak had disputed the market valuation of those properties as claimed by the petitioner and contended that their total guideline value was only ₹36.91 crore.

Making it clear the petitioner must only come up with a proposal for liquidation of those assets, Justice Jayachandran said no sale should take place without the approval of the special court and the consent of the prosecution. He also cautioned the petitioner against creating any other kind of encumbrance with respect to the properties without the special court’s nod.

The judge further directed the petitioner, who has been under incarceration since August 13, 2024, to execute a bond for ₹10 lakh, along with two sureties for a likesum and also surrender his passport before the special court for availing the benefit of interim bail. He was also directed to appear before the special court on every Monday until October 30, 2025.

The special court was empowered to pass appropriate orders if the petitioner breaches any of the interim bail conditions imposed by the High Court. Justice Jaychandran said, a decision on granting regular bail would be taken only after considering the bonafide of the petitioner in honouring his undertaking before the court that he too was interested in settling the depositors.

Mr. Murthy told the court his client would first settle the deposits that had matured and then settle other deposits as and when they reach the maturity period, without imposing any new conditions. The judge directed the High Court Registry to list the bail petition again on October 31, 2025 for taking stock of the situation and passing further orders.

The orders were passed after hearing advocate N.G.R. Prasad, assisted by R. Thirumoorthy, for the Mylapore Hindu Permanent Fund Investors and Depositors Welfare Association too. The court was informed that deposits to the tune of ₹300 crore had already matured and due for repayment.