Devanathan Yadav, the former BJP‑backed MLA from Sivaganga and head of the Mylapore Hindu Permanent Fund Nidhi, was taken into custody on May 12, 2026 after a police raid uncovered evidence of a 700‑crore embezzlement scheme.
The alleged fraud siphoned off deposits from more than 6,000 senior citizens, many of whom had invested their life savings for retirement security. Shanmugasundaram, 80, said he had liquidated his property to fund a 68‑lakh deposit that never returned; he now mourns a sister‑in‑law lost to cancer.
The court demanded a 100‑crore bail deposit and placed Yadav under strict supervision while the Economic Offences Wing probes the case. The Madras High Court noted that interest payments halted in February 2024 and that matured deposits were ignored.
Victim groups have marched in Chennai’s streets, chanting for a special fast‑track court and the attachment of Yadav’s properties. Devika, who lost 48 lakh, accused the fund of daylight robbery, adding that she had kept the money untouched to preserve her dignity.
A 87‑year‑old depositor, barely able to walk, highlighted how the promised super‑senior interest vanished, forcing him to sell his home. Jayashree, a heart patient, said the loss of 10 lakh and the cessation of a 9,000‑rupee monthly interest left her unable to afford medication.
The next hearing is scheduled for June 10, 2026, when the court will decide on the forensic audit and the liquidation order, a decisive step toward refunding the victims.
The government has pledged a swift investigation, and the Economic Offences Wing is coordinating with the Anti‑Corruption Bureau to seize assets linked to Yadav and the fund.
The case underscores a growing concern over unregulated provident funds and the vulnerability of elderly depositors to financial crime.