Tiruppur Chit Firm Proprietors Sentenced to 10 Years for Defrauding Investors

A special court in Coimbatore, operating under the Tamil Nadu Protection of Interests of Depositors (TNPID) Act, has sentenced two chit firm proprietors to ten years of rigorous imprisonment for cheating investors. The convicts, identified as L. Dharmalingam and P. Ganesan from Tiruppur, were found guilty of defrauding 130 individuals of approximately ₹80.57 lakh (₹8,057,861). Special Judge M.N. Senthil Kumar delivered the verdict on April 16, 2026. In addition to the prison term, the court imposed a substantial fine of ₹93.80 lakh (₹9,380,000) on the two accused. The judgment explicitly mandates that this fine be paid to the affected investors as compensation for their financial losses. This case highlights ongoing legal efforts in Tamil Nadu to protect depositors from fraudulent financial schemes and ensures restitution for victims of such economic crimes. The ruling serves as a significant precedent for enforcing accountability among chit fund operators who exploit public trust for illegal gains.