ASHOK FARMS @ COPRAS vs THE STATE REP.BY

2026:MHC:4406
CRL A No.482 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 26-10-2026
CORAM
THE HON'BLE MR.JUSTICE SUNDER MOHAN
CRL A No. 482 of 2020
CNR: {HCMA011169282020}
1. Ashok Farms @ Copras
No.25, Senthan, Kandan Complex, II Floor,
Erode Main Road, Gobichettipalayam,
Erode District.
2. G.Rajesh
..Appellant(s)
Vs
The State Rep.By
The Inspector of Police, EOW-II, Erode.
..Respondent(s)
Prayer : Appeal filed under Section 374 of the Criminal Procedure Code,
to call for the records in C.C.No.24 of 2013 on the file of the Special
Judge, Special Court under TNPID Act, Coimbatore dated 30.09.2020 and
set aside the same.
For Appellant(s): Mr.V.M.Rajentren
For Respondent(s): Ms.Sharada Vivek
Additional Public Prosecutor
JUDGMENT
The appeal challenges the judgment passed in C.C.No.24 of 2013 by
the Special Judge, Special Court under TNPID Act, Coimbatore, holding
the second appellant guilty of the offences under Section 420 of the
1
Indian Penal Code, 1860 and Section 5 of the Tamil Nadu Protection of
2
Interests of Depositors (In Financial Establishments) Act, 1997 and
sentencing as follows:
1
Hereinafter referred as “IPC”
2
Hereinafter referred as “TNPID Act”.
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2026:MHC:4406
CRL A No.482 of 2020
(i) To undergo three years simple imprisonment and to pay fine
of Rs.25,000/- for each counts (Fine of Rs.25,000/- x 81
counts), in total Rs.20,25,000/- under Section 420 of IPC, in
default of payment of fine to undergo further one year simple
imprisonment; and
(ii) To undergo ten years simple imprisonment and to pay fine of
Rs.25,000/- (Fine of Rs.25,000/- x 81 counts), in total
Rs.20,25,000/-, under Section 5 of the TNPID Act, in default of
payment of fine to undergo further one year simple
imprisonment. Total fine amount of Rs.40,50,000/-.
Since the first appellant is not a legal entity, no sentence was imposed
separately.
2. It is the case of the prosecution that the second appellant is the
proprietor of the concern, who is shown as the first accused; that the
second appellant had promoted four Schemes, by which, he had promised
202% and 106% interest per annum on deposit of Rs.50,000/-
respectively and 130% and 94% interest per annum if they deposited
Rs.1,00,000/- respectively and thus, collected a sum of Rs.1,21,13,000/-
from 81 depositors. On the complaint given by the depositors, a case was
registered in Crime No.727 of 2012 and upon investigation, final report
was filed for the offences under Section 420 of IPC and Section 5 of the
TNPID Act (81 counts).
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2026:MHC:4406
CRL A No.482 of 2020
3. The learned Trial Court took cognizance of the final report and
framed charges under Section 420 of IPC and Section 5 of the TNPID Act.
Before the Trial Court, the prosecution examined 92 witnesses and
marked Exhibit P.1 to Exhibit P.315 . The Trial Court found that the second
appellant/A2 had collected deposits from the witnesses and had failed to
repay the depositors and thus, committed the aforesaid offences and
sentenced him as stated above.
4. Mr.V.M.R.Rajentren , learned counsel for the appellants would
submit that the properties of the second appellant were attached and sold
in auction; that the prosecution had realized Rs.75,48,278/-; and that the
Competent Authority had also filed an affidavit stating that the 78
depositors were settled in proportion to their deposit amount. The learned
counsel for the appellants therefore, in effect, did not challenge the
finding of guilt and prayed for reduction of the sentence in view of the
subsequent developments.
5. Ms.Sharada Vivek , learned Additional Public Prosecutor, per
contra , submitted that the prosecution had established its case beyond
reasonable doubt; that all the witnesses have uniformly stated about the
promise made by the second appellant; that the deposit receipts have
also been marked by the prosecution and therefore, there is no infirmity
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2026:MHC:4406
CRL A No.482 of 2020
whatsoever in the finding of guilt and the sentence imposed by the Trial
Court. However, the learned Additional Public Prosecutor conceded that a
sum of Rs.75,48,278/- was in fact realized on the sale of the second
appellant’s properties and 78 depositors have been settled.
6. From the submissions made by the learned counsel appearing for
the appellants and the learned Additional Public Prosecutor, it is clear that
the finding of guilt recorded by the Trial Court cannot be faulted. All the
witnesses who have made deposits have uniformly stated about the
deposits made by them and have also marked the deposit receipts to
substantiate their oral evidence. This Court, therefore, finds no infirmity
whatsoever in the finding of guilt recorded by the Court below on the
basis of the oral and documentary evidence adduced on the side of the
prosecution. Therefore, the finding of guilt is confirmed.
7. As regards the sentence, it is seen from the affidavit dated
th
5 February, 2026, filed by the District Revenue Officer and the
Competent Authority under the TNPID Act, that a sum of Rs.75,48,278/-
has been realised on the sale of the second appellant’s properties.
Admittedly, the second appellant does not own any other properties.
Relevant portion of the affidavit filed by the Competent Authority reads as
follows:
“ 6. I submit that, based on the orders of the Hon’ble Special
Court, (TNPID) Coimbatore, amount was settled to 78
depositors with the interest accrued to the deposited amount.
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2026:MHC:4406
CRL A No.482 of 2020
The total amount in the account of the Competent Authority
and District Revenue Officer as on 27.10.2025 was
Rs.75,48,278/- which is 62.56% of the deposit value
Rs.1,20,64,750/- with that an amount of Rs.57,39,725/- was
settled to 78 depositors at 62.56% of the value of their
deposit. Remaining one Tmt.R.Kanjana Devi (to be settled
Rs.62,560/-) depositor is in abroad and hence has been asked
to send an affidavit with bank account details for transfer of
amount. Another one Tr.D.Sakthiraja (to be settled
Rs.17,45,424/-) depositor is not in the address mentioned in
the complaint petition given to the police and efforts are being
made by the Economic offences wing officials to contact them.
Hence the amount of Rs.18,07,984/- could not be distributed
for the above two persons.”
8. Since the second appellant has been imprisoned for 4 years and
3 months (1574 days) out of the sentence of ten years imposed by the
Trial Court, this Court is of the view that the interest of justice would be
met if the sentence of imprisonment is reduced to the period already
undergone and the fine amount is reduced to Rs.2,00,000/- (Rupees Two
Lakhs Only) for the offence under Section 420 IPC, in default, to suffer
three months simple imprisonment and the sentence of imprisonment is
reduced to the period undergone for the offence under Section 5 of the
TNPID Act and the fine amount to Rs.2,00,000/- (Rupees Two Lakhs
Only) and in default, to suffer three months simple imprisonment. Out of
the fine amount deposited, a sum of Rs.3,50,000/- (Rupees Three Lakhs
Fifty Thousand Only) shall be credited to the account of the Competent
Authority and the District Revenue Officer, Erode, to enable him to
distribute the same to the depositors proportionately.
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2026:MHC:4406
CRL A No.482 of 2020
9. Accordingly, the criminal appeal is dismissed with the above
modifications. Consequently, Crl.M.P.No.7485 of 2020 is closed.
26-10-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
( drm )
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2026:MHC:4406
CRL A No.482 of 2020
To:
1. The Inspector of Police, EOW-II, Erode.
2. The Special Judge, Special Court under TNPID Act, Coimbatore.
3. The Competent Authority/District Revenue Officer, Erode.
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2026:MHC:4406
CRL A No.482 of 2020
SUNDER MOHAN, J.
( drm )
CRL.A.No.482 of 2020
26-10-2026
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