The accused were acquitted after settling all dues to depositors, establishing that offences under the TNPID Act can be compounded post-settlement.

JUDGMENT :

1. This Criminal Appeal had been filed against the judgment dated 11.01.2021 passed in C.C. No. 17 of 2014 on the file of the learned Special Judge, Special Court under TNPID Act Cases, Coimbatore.

2. The brief facts, which are necessary for the disposal of this Criminal Appeal, are as follows:

2.1. According to the Inspector of Police, EOW-II, Coimbatore, the Accused No.1 viz., Asian Emu Farms was registered before the Registrar of Firms, Coimbatore under Reg. No.979/2011 on 04.08.2011. They were running their office at S-Block, 11-B, Thamilarasi Complex, Kovaipudur, Coimbatore. Accused-2 to Accused-6 are the partners of Accused-l Financial Establishment as per the Partnership Deed dated 10.07.2011, Accused-7 Paul retired from the said Accused-l firm on 20.08.2011 and one C. Sivan, Accused-8 was newly inducted as partner of the Accused-1 Firm. On 16.11.2011, the Accused-2 to Accused-7 have jointly opened a Current Account No.1294135000001572 with Karur Vysya Bank, Kovaipudur Branch, Coimbatore. The Accused Accused-2 to Accused-8 planned and worked together in a calculative manner and collected deposits from the public with a dishonest intention to cheat the depositors and swindle their deposit amounts. The Accused had induced the general public with the false promises of unrealizable returns and also assured to return the principal amount at the end of the term and collected deposits from them in fraudulent financial operation popularly known as "PONZI SCHEME". Further Accused-2 to Accused-8 canvassed and collected deposit amount under various plans viz.

(i) Under Plan-1, on deposit amount of Rs.2,00,000/-, the Company would pay an amount of Rs.8,000/- as monthly returns to every month for a period of 24 months and pay an amount of Rs.55,000/- as bonus for two years; they would build a shed in the depositors land and supply 8 Emu Chicks with full insurance coverage; they would supply necessary feed and medical assistance; the depositor has to grow the chicks for a period of 24 months and they would take back the grown up chicks and return the deposit amount to the depositor at the end of 24 months;

(ii) Under Plan-II, on deposit amount of Rs.1,50,000/-, the Company would pay an amount of Rs.6,500/- as monthly returns to every month for a period of 36 months and pay an amount of Rs.45,000/- as bonus for three years; they would build a shed in the depositors land and supply 6 Emu Chicks with full insurance coverage; they would supply necessary feed and medical assistance; the depositor has to grow the chicks for a period of 36 months and they would take back the grown up chicks and return the deposit amount to the depositor at the end of 36 months;

(iii) Under Plan-III, on deposit amount of Rs.1,50,000/-, the Company would pay an amount of Rs.7,000/- as monthly returns to every month for a period of 36 months and pay an amount of Rs.45,000/- as bonus for three years; they would build a shed in the depositors land and supply 6 Emu Chicks with full insurance coverage; they would supply necessary feed and medical assistance; the depositor has to grow the chicks for a period of 36 months and they would take back the grown up chicks and return the deposit amount to the depositor at the end of 36 months;

(iv) Under Plan-IV, on deposit amount of Rs.1,00,000/-, the Company would pay amount of Rs.5,000/- as monthly returns to every month for a period of 60 month; they would build a shed in the depositor's land and supply 4 Emu Chicks with full insurance coverage; they would supply necessary feed and medical assistance; the depositor hat to grow the chicks for a period of 60 months and they would take back the grow