Where is the money, wonder flummoxed investors, police

Insteri

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posted on 12 years ago — updated on 1 second ago

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Follow us:WhatsappFacebookTwitterTelegram.cls-1{fill:#4d4d4d;}.cls-2{fill:#fff;}Google NewsIt is easy to get into a maze but not come out of it. Cheated depositors and investigators who have trailed the lost money would vouch for this.After several finance companies wound up overnight in 1996-97, the government enacted the Tamil Nadu Protection of Interests of Depositors (TANPID) Act.The Act spilt victim compensation from the criminal proceedings by keeping the compensation part outside the ambit of tedious court proceedings. Instead police were empowered to initiate the process of assets recovery and repay deposits on a pro-rate basis to the victims.But the process is not easy.“For example, when the offenders stash away money in foreign banks, the police have to go through a host of agencies to even communicate with the bank. Even after we manage to reach the foreign bank, the bank officials would simply refuse to co-operate saying the interest of their customers is paramount to them,” says G Thilakavathi, retired Director General of Police, who had headed the Economic Offences Wing (EOW) of the State Police for a substantial period.A case in point is the multi-crore Paazee Forex Trading scam, where the accused had deposited the money in a Singapore bank, where recovery has been impeded.Thilakavathi says the Central Government should put in place a simple channel for State police to communicate with foreign banks.Benami transactions too pose a hurdle. “The accused often sell the ill-gotten wealth to close relatives at a much lower price. When we attach those properties, the relative would go to court saying it is his legitimate property and the police must be restrained from attaching it. Then we have to wait for the court’s verdict which takes years,” says Deputy Superintendent of Police (EOW) T Somasekaran.Thilakavathi says such cases must quickly be transferred to the EOW.“In several instances, other agencies and arbitrators handle the cases before it reaches the EOW giving an opportunity to the accused to stash the wealth in safe havens,” she says.first published:August 16, 2012, 10:21 ISTlast updated:August 16, 2012, 10:21 IST
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It is easy to get into a maze but not come out of it. Cheated depositors and investigators who have trailed the lost money would vouch for this.

After several finance companies wound up overnight in 1996-97, the government enacted the Tamil Nadu Protection of Interests of Depositors (TANPID) Act.

The Act spilt victim compensation from the criminal proceedings by keeping the compensation part outside the ambit of tedious court proceedings. Instead police were empowered to initiate the process of assets recovery and repay deposits on a pro-rate basis to the victims.

But the process is not easy.

“For example, when the offenders stash away money in foreign banks, the police have to go through a host of agencies to even communicate with the bank. Even after we manage to reach the foreign bank, the bank officials would simply refuse to co-operate saying the interest of their customers is paramount to them,” says G Thilakavathi, retired Director General of Police, who had headed the Economic Offences Wing (EOW) of the State Police for a substantial period.

A case in point is the multi-crore Paazee Forex Trading scam, where the accused had deposited the money in a Singapore bank, where recovery has been impeded.

Thilakavathi says the Central Government should put in place a simple channel for State police to communicate with foreign banks.

Benami transactions too pose a hurdle. “The accused often sell the ill-gotten wealth to close relatives at a much lower price. When we attach those properties, the relative would go to court saying it is his legitimate property and the police must be restrained from attaching it. Then we have to wait for the court’s verdict which takes years,” says Deputy Superintendent of Police (EOW) T Somasekaran.

Thilakavathi says such cases must quickly be transferred to the EOW.

“In several instances, other agencies and arbitrators handle the cases before it reaches the EOW giving an opportunity to the accused to stash the wealth in safe havens,” she says.