The court reinforced that purchasers must verify pending litigations before purchasing properties, especially those under attachment due to fraudulent implications.

JUDGMENT :

K.GOVINDARAJAN THILAKAVADI, J.

This appeal is preferred against the order passed in O.A.No.4 of 2024 dated 29.08.2025 on the file of the Special Judge, Special Court under TNPID Act, Coimbatore.

2.The appellant as petitioner has filed O.A.No.4 of 2024 under Section 9 of TNPID Act to raise the attachment in respect of the subject property, mentioned as Item No.5 in O.A.No.35/2013.

3.The contention of the appellant is that, he is a third party to the main proceedings under the TNPID Act, whereby he had purchased the above said property on 15.12.2000 and the same was attached on 14.06.2001 under the guise that the said property was purchased from the funds of the depositors.Hence, prayed for raising the attachment.

4.This petition was resisted by the Authority stating that, as per G.O.Ms.No.558, Home (Court-II A) Department dated 14.06.2001, seven immovable properties of the financial institution namely Ohm Sakthi Finance, were placed under interim attachment, based on the complaints received from the depositors to the effect that the said financial institution defaulted in returning the deposit amounts to the depositors. The Authority had filed O.A.No.35/2013 before TNPID Court, Coimbatore, to make the interim order of attachment absolute and to permit the Authority to sell the properties through public auction and the same was allowed on 28.11.2013. Earlier, the appellant had filed O.A.No.4/2010 to raise the attachment in respect of the petition mentioned property and the same was dismissed on 09.07.2012 against which no appeal was preferred by the appellant. The writ petition preferred by the appellant in W.P.No.26323/2015 to raise the attachment was also dismissed by this Court on 07.02.2023 and no appeal was preferred against the said order. During pendency of the writ petition, except item Nos. 5 & 6, the remaining item Nos. 1 to 3 and 7 were sold in the public auction for sale price of Rs.81.80 lakh. It is further stated that, out of 40 investors, the amount was disbursed to 37 investors with interim interest on 08.06.2016 and 16.08.2016. The depositors have sought for 9% interest from the date of deposit. The remaining principle amount of Rs. 2,10,000/- are yet to be received by three remaining investors. It is further stated that a sum of Rs.67,44,986/- towards interest is payable to all the 40 investors and in order to settle the outstanding amount, it is necessary to sell the attached properties including the subject property through public auction and utilize the sale proceeds for disbursement to the investors. It is further stated that the current market value of the subject property is Rs.40,00,000/- where as, the appellant seeks to secure release of the same by offering only Rs.79,464/- being the value assessed on the date of Government take over, which is wholly untenable and cannot be accepted. Further it is stated that, the transactions which took place in respect of the subject property would reveal about the deliberate intention of obstructing the lawful proceedings initiated by the Government. Hence, prayed for dismissal of the suit.

5.The learned Special Judge, dismissed the said application against which the present appeal is preferred.

6.Heard both sides and records perused.

7.It is not in dispute that a sum of Rs.55,93,500/- was deposited by several depositors in M/s. Ohm Sakthi Finance and the said financial establishment defaulted in repaying the said deposits and hence, proceedings were initiated under TNPID Act. In pursuant to G.O.Ms.No.558 Home (Court II A) Department, dated 14.06.2001, an interim attachment order was passed in respect of 7 properties including the petition mentioned property of the petitio