Madras High Court Grants Interim Bail to Financier in Mylapore Hindu Permanent Fund Case

The Madras High Court granted interim bail to Devanathan Yadav, managing director of the Mylapore Hindu Permanent Fund (a Nidhi company), accused of defrauding depositors of Rs. 619 crores. Justice G Jayachandran observed that extended incarceration would not aid recovery for depositors, who have yet to receive even a fraction of their money despite Yadav's arrest in August 2024. The Court directed Yadav’s release on bail till October 30, 2025, with conditions including mobilizing Rs. 100 crore to be deposited in the court handling cases under the Tamil Nadu Protection of Interests of Depositors (TNPID) Act. Additionally, Yadav must report weekly to the Special Judge and surrender his passport. He is also required to advance the liquidation of properties detailed in his affidavit, but any sale must have Special Court approval and prosecution consent. The state opposed bail, questioning the genuineness of the asset valuations and fearing that Yadav might abscond. The Court recognized the allegations of large-scale fraud and noted disparity between claimed property values and official guideline rates, but emphasized that detaining Yadav further would only reduce asset values available for recovery. Yadav argued that pandemic-related delays and depositor panic caused the repayment issues. The Court’s decision tries to balance ensuring accountability and protecting the rights of the accused, while prioritizing asset preservation to benefit depositors.