Madras HC issues directive on plea seeking criminal action against the investment firm

SUBSCRIBE E-PAPER
STOCK MARKET BSE NSE
Home Cities Chennai
TN police to probe Templeton’s six closed schemes
Madras HC issues directive on plea seeking criminal action against the investment firm

Published: 24th January 2021 06:17 AM | Last Updated: 24th January 2021 06:17 AM | A+A A-
Cash; Capital; investment Representational Image By Express News Service
CHENNAI: The Madras High Court on Saturday ordered the Economic Offences Wing (EOW) of the State police to file a detailed report on a plea seeking criminal action against Franklin Templeton under the Tamil Nadu Protection of Interests of Depositors (TNPID) Act, and to freeze its bank accounts.

The issue pertains to the company winding up six of its mutual fund (MF) schemes, affecting over three lakh investors to the tune of Rs 28,000 crore, owing to the recent pandemic. The six debt MF schemes were shut on April 23, 2020, citing redemption pressures and lack of liquidity in the bond market.

The schemes are Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund.

Advertisement

The petitioner, Premnath Shanker, a banker, wanted the court to direct the EOW to file a status report on the steps taken to secure the investor money. “…the fraud committed by the company has resulted in a loss of about Rs 28,000 crore to as many as 3,15,621 depositors. In a case of this magnitude and considering the background of the company, it was just and necessary to include the offence under the TNPID Act,” the petitioner contended.

ADVERTISEMENT

He added that an FIR was also filed under Sections 409, 420, 120-B, 34 of IPC, based on his complaint.
The first bench of Chief Justice Sanjib Banerjee and Justice Senthilkumar Ramamoorthy, admitting the plea, directed the EOW to respond to the plea in four weeks. The EOW of the Chennai police had registered an FIR against the Asset Manager and Franklin Templeton Trustee Services for alleged criminal conspiracy to defraud over 3 lakh investors, causing wrongful loss to them and unlawful gain to themselves.

More From The Section
Apollo Hospitals Founder & Chairman Prathap C Reddy after taking the covid 19 vaccination shot at Vaccination center, Apollo hospital in Chennai. (Photo | R Satish Babu, EPS)Apollo Hospitals chairman among first recipients as COVID-19 vaccination drive begins in ChennaiPeople pay respect to Dr V Shanta, senior oncologist and Chairman of Cancer Institute at Adyar in Chennai. (Photo | Debadatta Mallick, EPS)Cancer Institute, Adyar Chairperson Dr V Shanta passes awayFor representational purposes. (Photo | Aasawari Kulkarni, Feminism in India)TN man held for forcing wife to sleep with friends, raping minorImage used for representational purpose only.Old and almost-forgotten Tamil textbooks to get new lease of life and be sold onlineRegional Director of Municipal Administration inspects the lake on Jan 11 and urges the Municipality to restore it. (Photo | EPS)Putheri restoration disrupted after private parties claim ownership of ‘lake bed’Biomedical waste including PPE kits, medicene and syringes dumped near alongside the service road in Nazarthpet, near Poonamallee in Chennai (Special arrangement)Biomedical waste dumped again in open near Chennai suburbs at PoonamalleApollo Hospitals Founder & Chairman Prathap C Reddy after taking the covid 19 vaccination shot at Vaccination center, Apollo hospital in Chennai. (Photo | R Satish Babu, EPS)Apollo Hospitals chairman among first recipients as COVID-19 vaccination drive begins in ChennaiPeople pay respect to Dr V Shanta, senior oncologist and Chairman of Cancer Institute at Adyar in Chennai. (Photo | Debadatta Mallick, EPS)Cancer Institute, Adyar Chairperson Dr V Shanta passes away
1
2
3
4
5
6
Now we are on Telegram too. Follow us for updates
TAGSMadras High Court Templeton
TNIE

ADVERTISEMENT

India Matters
Shristi Goswami (Photo | special arrangement)Haridwar girl Shrishti Goswami to be one-day CM of Uttarakhand on January 24Bihar CM Nitish Kumar (File Photo| PTI)’Defamatory’ social media posts on Bihar govt, MPs, MLAs can land you in jail File photo of fire mishap at the Serum Institute of India in Pune (Photo | PTI)Serum Institute fire caused damage worth Rs 1,000 crore: CEO Adar PoonawallaImage used for representational purpose onlyYouth spotted at lover’s house in Barmer lands in Pakistan prison
Comments

Write a comment…

Name

Email
Post
ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Latest
Consider vaccinating aviation sector workers on priority basis after health workers: MoCA to MoHFW
India to display key military assets on Republic Day; contingent of Bangladesh excited to march down Rajpath
Why reluctant to allow Opposition leaders to visit government hospitals if Yogi developed UP, asks AAP
Disagreeing with every move of Centre goes against spirit of federalism: Dhankhar lashes out at Mamata government
Still with party, future move depends on situation: Trinamool MLA Rajib Banerjee
About 25,000 tractors from UP, Uttarakhand to participate in ‘Kisan Parade’: Rakesh Tikait
Videos
Rahul Gandhi in Tamil Nadu. (Photo| EPS/ U Rakesh Kumar) Rahul Gandhi visits Tamil Nadu, kick-starts election campaignShristi Goswami One Day Chief Minister: Haridwar Girl set to lead Uttarakhand state on January 24
Gallery
Social media was abuzz Tuesday after India secured a historic fourth Test and series win over Australia by three wickets after a thrilling final day. One for the ages: From PM Modi to Sundar Pichai, a standing ovation for India’s wounded warriorsIn a survey conducted by ABP News in collaboration with C-Voter, Pinarayi Vijayan-led LDF government is all set to beat anti-incumbency tides and retain power in the southern state. Here are the major predictions made by opinion poll. (Photo | Albin Math Pinarayi Vijayan twice as popular as Oommen Chandy, LDF likely to return to power in Kerala: C-Voter ABP News Opinion Poll
Trending
Leopard sighted near N Begur, Koppa areas in Bengaluru, officials urge residents ‘not to panic’
Haridwar girl Shrishti Goswami to be one-day CM of Uttarakhand on January 24
Power cut in parts of Chennai on January 25, here’s the full list of areas
MGR could, Jaya could, Rajini can’t
INTERVIEW | Healthcare workers should not fear vaccination, says Dr Samiran Panda

FOLLOW US
Copyright – newindianexpress.com 2021

The Morning Standard | Dinamani | Kannada Prabha | Samakalika Malayalam | Indulgexpress | Edex Live | Cinema Express | Event Xpress

Contact Us | About Us | Careers | Privacy Policy | Search | Terms of Use | Advertise With Us

Home | Nation | World | Cities | Business | Columns | Entertainment | Sport | Magazine | The Sunday Standard

❎flipboard
faceb

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Now ButtonCALL ME