In Brief
The Supreme Court addressed whether a State Government can attach properties of a financial establishment suspected of defrauding depositors before a competent authority formally identifies those properties. Respondents operated a financial establishment offering high returns on deposits but failed to repay investors. The Government issued an ad-interim attachment order; the High Court set it aside, holding prior proceedings were necessary. The Supreme Court held that the Tamil Nadu Protection of Interests of Depositors Act vests the power to attach properties directly with the Government. The statutory language is clear: the Government may pass ad-interim orders immediately upon receiving depositor complaints, and the competent authority's role follows thereafter. The Court allowed the appeal, restoring the Government Order to protect depositor interests.">
The lawyer headnote and full judgment text are available to registered users.