Fidelity Finance Ltd.

I. Gist of the Case

A criminal case was registered against the Chairman and Directors on 21.09.2001 in EOW II. Tr.Balasubramanian, IPS (Retd. IGP) was appointed as the Administrator of the company in the year 2003. On 25.01.2007 the Administrator was removed by the Honourable High Court as per the Company Application No.109/2007 in Company petition No.65/2002 and the Official Liquidator has taken over the Administration of the company from 07.02.2007.

II. Accused Details: -

S.No.

Accused arrested

Accused obtained A/B

Accused absconding

Accused btained stay

1.

 Ashok Muthanna Leela Rathnam V.Srinivasan V.Krishnan

2.

 Ferjohn Jamshed Engineer Jambunathan Hemnath V.Chavan Ravindranathan

3.

 VGK.Moorthy Srinivasan    

4.

   G.Babu

III. High Lights

  1. EOW Cr.No.52/2001, U/s.409 and 420 IPC.
  2. Total amount involved: Rs.6.63 Crores
  3. Amount refunded by the company: Nil.
  4. Balance amount: Rs.6.63 Crores.
  5. Total No. of depositors: 1, 519
  6. Police complaints: Rs.6.63 Crores (1, 519 depositors).

 IV. Efforts taken by EOW-II

1.         With the assistance of Police the Administrator recovered a sum of Rs.1.14 Crores from the borrowers.
2.         Action was taken against 40 borrowers under civil proceedings by the former Administrator for recovery.
3.         The Company Court has already ordered for recovery of Rs.4 Crores from the borrowers and it is being followed.
4.         High Court stayed the further proceedings in this case.
5.         The report has been initiated to the Official Liquidator for sale process of the properties at Cochin (Kerala) and New Delhi..

V. Details of property: -

1.         About 1.25 acres worth more than Rs.7 Crores “Sainak Farms” at Delhi is pending for auction in the Court (Identified).
2.         M//s.King’s International property worth Rs.2 Crores (6 flats in 1st floor) at Cochin, Kerela State (Identified).

VI. Latest Development: -

This case is under the purview of Official Liquidator of Madras High Court. The property at Delhi has been evaluated and Official Liquidator has filed the petition for auction shortly.

The High Court order has been obtained by the official liquidator to refund 1.85 crores to 3,500 depositors.

The official liquidator is scrutinizing the records of depositors by sending notice to the depositor.

VII. Request to Depositors

            Depositors are requested to convey information with regard to any available properties of the Directors or Company and inform the Official Liquidator or Police to take further action. For further details contact at the below mentioned address: -

Tr.Ponnu Nambi,
Official Liquidator,
Corporate Bhavan,29, Rajaji Road II Floor,
Chennai-600 001.
PH: 044-25271150, 25271151, 25271152.

Tr. S. Amaravarman,
IDy Supdt of Police, EOW -II,      Chennai - 40.
PH: 9940082757