RBF

Dated: 7th March, 2007

1. In continuation of the meeting with depositors of cases pertaining to Alwarpet Benefit Fund, Anubhav Group of companies, Devi Gold House the Addl. Director General of Police, EOW, Tmt.Archana Ramasundaram, I.P.S., Superintendent of Police, Tmt. M.Sathiya Priya and Investigating officer DSP Tr.M.Rajan and officers of EOW conducted the meeting with depositors of RBF at the Admiralty House, Govt. Estate, Chennai on 07.03.2007. 

2. Addressing the huge gathering of nearly 600 depositors the ADGP explained the present status of the case against Royapettah Benefit Fund Ltd. It was further explained that the main purpose of the meeting with the depositors was to enlighten the sustained efforts being made by the Economic Offences Wing in bringing the culprits in the eyes of law, who defrauded the depositors in co-ordination with the other agencies like the Board of Directors appointed by the CLB and the OL.
 
3. RBF is a Non-banking Finance Company which had defaulted Rs.454 Crores of deposit amount to 1, 92,000 depositors during the year 1999. On the basis of complaints for non refund of the deposit amount, a criminal case was registered against the Directors of RBF by the Chennai City Police, CCB on 14.12.1999. The case was transferred later to Economic Offences Wing, Chennai on 22.01.2000 for further investigation. 33 accused are involved in this case. Out of which some of the main accused like P.S.Venkatesan, A.G.Nirmal Kumar, G.Hubbert Fenelon, V.Ganesan, K.N.R.Unni and Murugabharathy have been arrested, whereas S.Subramaninan, M.Shyam Kumar & Srinivasalu Reddy obtained Anticipatory bail. The Company Law Board appointed Board of Directors during January 2000 and was provisionally liquidated on April 2006 and as per the orders of the Honourable High Court both the CLB and OL are now looking after the administration from September 2006.

  4. Efforts taken by EOW

  • 6 final reports were filed of which 2 CCs ended in conviction and Fast track Court confirmed the conviction.
  • Action against the mega borrowers has been followed closely, 3 of them were arrested and some of them cleared their arrears. Collections of money from other borrowers are being expedited. One of the mega borrowers was brought to India, through Interpol and he agreed to settle his due before the Honourable High Court of Madras. Several suits are pending against the borrowers for nearly Rs.258 Crores (Principal alone) before the Honourable High Court of Madras.
  • 205 properties have been interim attached and is pending with Chief Small Causes Court.
  • Identification of personal properties is in progress.
  • 3 SLP’s pending before the Honourable Supreme Court of India is also followed closely.
  • Liaison with the OL with regard to the sale of the company properties is in progress.
  • Steps are also being taken along with OL to disburse the next 6th instalment shortly.
  • During the meeting many depositors expressed their individual grievances. They requested for the early refund of the remaining money and also to expedite the next instalment. The ADGP heard their specific grievances and appropriate action was assured wherever possible. Some of them raised queries with regard to the change of address, change of nomination, un claimed instalments of refund given so far etc., and the depositors were requested to contact the Office of the Chairman, RBF Nidhi Ltd., No.8, West Cott Road, Royapettah, Chennai-14, Ph: 044 – 28481180 and the Official Liquidator, Esplanade, Kuralagam, Chennai-01. PH: 044 – 25342127 and 044 – 25341473

  5. High Lights

  • Total amount involved: Rs.454 Crores.
  • Total no. of depositors: 1, 92,000
  • Police complaints: Rs.32 Crores (20, 000 depositors).
  • Amount settled: Rs.133.37 Crores @ 25%.
  • 58, 653 depositors got their full amount (for deposits up to Rs.5, 000/-).
  • Last refund made during January 2006.
  • Remaining amount to be settled: Rs.320.62 Crores for 1, 33,347 depositors.
  • A sum of Rs.9.5 Crores is available with OL for the next disbursement.
  • Seven accused convicted for two years imprisonment and Rs.10, 000/- fine during March 2005.
  • Criminal appeal filed by the convicted accused is pending in the Honourable High Court.
  • 55 discharge petitions have been filed by the accused and arguments have commenced and trial will follow after the disposal of these petitions.