A special court in Coimbatore has sentenced the partners of an Erode-based poultry firm to 10 years of rigorous imprisonment for defrauding 1,062 investors of over ₹24 crore.

  • Partners of 'Green Life Farms and Poultry' sentenced to 10 years RI.
  • Total victims: 1,062 investors defrauded of ₹24.34 crore.
  • Court imposed a massive fine of ₹24.53 crore.
  • The scam involved fraudulent promises of high monthly returns and poultry assets.

In a significant crackdown on financial fraud, the special court for trials under the Tamil Nadu Protection of Interests of Depositors (TNPID) Act in Coimbatore has delivered a stern verdict. The court sentenced the partners of an Erode-based firm, P. Viswanathan and S. Gowrishankar, to 10 years of rigorous imprisonment (RI) for orchestrating a massive investment scam.

Special Judge M.N. Senthil Kumar handed down the sentence following evidence that the duo, operating through 'Green Life Farms and Poultry,' defrauded 1,062 individuals of approximately ₹24.34 crore. To ensure restitution, the court also slapped a heavy fine of ₹24.53 crore on the convicts.

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The Deceptive Scheme

The investigation revealed a highly calculated modus operandi designed to exploit the trust of small-scale investors. The firm lured victims by offering a high-yield investment model: for a single unit investment of ₹1,20,000, investors were promised a monthly return of ₹9,000 and an annual bonus of ₹12,000.

To add legitimacy to their scam, the perpetrators promised tangible assets, including 400 country chicks, the construction of poultry sheds, feed supply, medical check-ups, free insurance, and free medicines. Investors were further misled with the assurance that their principal amount would be fully returned after a three-year maturity period.

Why This Matters

BozokMedia analysis shows that such agri-based investment scams pose a significant threat to the economic stability of rural populations. By masquerading as legitimate agricultural enterprises, these fraudsters bypass the initial skepticism of investors. This verdict serves as a critical deterrent against similar organized financial crimes in the region.

The imposition of such a heavy fine alongside imprisonment marks a decisive step toward victim compensation in TNPID cases.

The case was originally registered in 2012 by the Economic Offences Wing (EOW-Erode). The prosecution had also named two managers, V. Banumathi and G. Nirmala, in the initial investigation involving the total cheated amount of ₹24,34,15,100.

Historical Background

The TNPID Act was enacted to protect depositors from unscrupulous companies that collect money under the guise of deposits and fail to return them. Over the years, Tamil Nadu has seen several high-profile cases where agricultural and poultry-based schemes were used to siphon off billions from unsuspecting citizens.

Did You Know?: Ponzi schemes often use 'tangible asset' promises, like livestock or land, to make the investment appear safer than it actually is.

Frequently Asked Questions

Question 1: Who were the primary convicts in this case?
Answer: The primary convicts are P. Viswanathan and S. Gowrishankar, partners of Green Life Farms and Poultry.

Question 2: What was the total amount involved in the scam?
Answer: The scam involved defrauding 1,062 investors of approximately ₹24.34 crore.