Lifetime Savings Vanish: Chennai Depositors Protest Alleged Rs 700-Crore Nidhi Scam
Chennai: Hundreds of elderly depositors gathered on the streets of Chennai this week, their voices echoing a collective sense of despair and betrayal. For these individuals—many of whom are in their twilight years—the Mylapore Hindu Permanent Fund Nidhi was supposed to be a bastion of financial security. Instead, it has become the site of what victims describe as a staggering Rs 700-crore financial fraud, leaving thousands facing a future of uncertainty and hardship.
For octogenarian Shanmugasundaram, the financial fallout is deeply personal. Having invested Rs 68 lakh—the total proceeds from a property sale—into the 150-year-old institution, he had hoped the marginal interest premium over traditional banks would sustain his family. Today, that hope has evaporated. “I couldn’t save my sister-in-law who fought cancer. I couldn’t spend anything,” he lamented, recounting how the sudden lack of liquidity prevented him from providing essential care during a family medical emergency.
A Crisis of Trust
The crisis centers on the Mylapore Hindu Permanent Fund Ltd, an institution formerly led by Devanathan Yadav, an entrepreneur and politician who made headlines during the 2024 Lok Sabha elections as an NDA candidate representing the Indhiya Makkal Kalvi Munnetra Kazhagam (IMKMK). Yadav has since been arrested in connection with the investigation into the fund’s operations.
According to the Depositors’ Association, approximately 6,000 individuals have been impacted by the collapse. Perhaps most heartbreaking is the report that at least 40 depositors have passed away since the fund ceased honoring payments in February 2024, never seeing their life savings returned.
Echoes of Financial Ruin
The testimonies from the protest site paint a grim picture of systemic failure. Devika, who invested Rs 48 lakh, described the ordeal as “daylight robbery.” She had meticulously guarded those funds to ensure her independence, refusing to burden her children with her financial upkeep. Now, she finds herself stripped of the dignity she worked decades to build.
Other victims share similar stories of survival interrupted. An 87-year-old couple, drawn in by promotional interest rates for “super senior” citizens, now finds their Rs 10 lakh nest egg inaccessible. Jayashree, a heart patient, highlighted the compounding nature of the crisis: the monthly interest payments of Rs 9,000 she relied upon for her life-saving medication have stopped entirely, plunging her into a desperate medical struggle.
Demands for Justice
While the Economic Offences Wing (EOW) of the Tamil Nadu Police is actively investigating the irregularities, the victims argue that the pace of the probe is insufficient given the scale of the tragedy. Protesters are now demanding a multi-pronged approach from the government to secure relief:
- Fast-Track Adjudication: The establishment of a dedicated court to expedite the case and ensure accountability.
- Forensic Accountability: A comprehensive forensic audit of all fund accounts to track the movement of diverted capital.
- Asset Liquidation: The attachment and subsequent sale of the fund’s properties and assets to create a corpus for compensating affected depositors.
As the legal proceedings continue—with the Madras High Court already involved in matters regarding bail conditions and defaulted payments—the depositors remain steadfast. For them, the battle is no longer just about interest rates or financial planning; it is a fight for the basic means to survive their final years.
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