CURRENT SCENARIO
The Neomax Group is currently subject to investigation for alleged offences under the TNPID Act, 1997 and BUDS Act, 2019. The cumulative claim from approximately 60845 Complainants stands at approx. INR 6,490 Crores.
A significant disparity exists between the "Distress Value" of attached assets (estimated by Appointed Valuers at INR 2,627 Crores) and the "Potential Market Value" (estimated by Neomax Group at INR 7,100+ Crores). A standard public auction at distress value would result in a recovery of merely 30-40%, causing severe financial loss to the victims.
To explore a viable "Hybrid Settlement Scheme" that shifts the focus from "Liquidation" (selling as scrap) to "Resolution" (value realization).
A Proposed Scheme is designed and submitted to Hon'ble Madras High Court in order to achieve 100% claim recovery for all the victims by unlocking the "Going Concern" value of the land bank, under the strict supervision of this Hon'ble High Court.
Section 6 of the TNPID Act mandates "Equitable Distribution."
This Proposal interprets equity not as "Equal Misery" (everyone gets a small cut), but as "Distributive Justice"—prioritizing full refunds for small/vulnerable claimants using the surplus generated from premium assets.
- Equality
- Transparency
- Timely Settlement
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