RBF Nidhi Ltd.

  I.Gist of the Case:

    On the Complaint lodged by Tr.Srinivasan to the CCB, Chennai on 06.12.1999 a case was registered in X.Cr.No.1066/1999, U/s.420, 409 & 120 (b) IPC, later transferred to EOW on 22.01.2000. The Company Law Board appointed Chairman and Directors on 18.01.2000.
  Chairman:

1.  Tr.A.R.Rao, till 2000
2.  Tr.Sabhanayagam, I.A.S., (Retd), till 2002,
3.  Tr.F.C.Sharma, I.P.S., (Retd) till 2005,
4.  Tr.Vallinayagam, Justice (Retd) till 2006,
5. Tr.A.P.Muthusamy, I.A.S., (Retd) presently continuing.

  Liquidation:
    Company was provisionally liquidated on 17.04.2006. Tr.Gangadhar Rao is the Official Liquidator and has taken possession of the company assets. As per the Honourable High Court both CLB and OL are looking after the RBF Nidhi’s Administration from September 2006.

  II. Accused Details:

  Total Accused: 30

  A1. S.Subramani, (A/B),
  A2. P.S.Venkatesan, (Arrested),
  A3. A.G.Nirmal Kumar, (Arrested),
  A4. G.Hubbert Fenelon, (Arrested),
  A5. V.Ganesan, (Arrested),
  A6. K.N.R.Unni, (Arrested),
  A7. M.Shyam Kumar, (A/B),
  A8. Srinivasalu Reddy, (A/B),
  A9. Murugabharathy, (Arrested) and 24 others.

1. Arrested: 06,
2. A/B:03,
3. Surrendered:17,
4. Died:01,
5. Discharged: 02 and
6. Absconding: 01.

  III. High Lights:

1. Total amount involved: Rs.454 Crores.
2. Total no. of depositors: 1, 92,000
3. Police complaints: Rs.32 Crores (20, 000 depositors).
4. Amount settled: Rs.147.04 Crores @ 28%.
5. 58, 653 depositors got their full amount (for deposits up to Rs.5, 000/-).
6. Last refund made during February 2008.
7. Remaining amount to be settled: Rs.316.63 Crores for 1, 33,347 depositors.
8. 6 separate Police final reports were filed against 33 accused in C.C.Nos.11457, 11458, 11459/2002, 6411, 6412 and 12027/2003.
9. Two CCs ended in conviction.
10. Seven accused convicted for two years imprisonment and Rs.10, 000/- fine during March 2005.
11. Fast track Court confirmed the conviction during September 2006.
12. Criminal appeal filed by the convicted accused and is pending in Honourable High Court.
13. Trial proceedings pending in other C.Cs.
14. 55 discharge petitions have been filed by the accused and arguments have commenced.

  Due from Borrowers

Name	Principle due	Remarks
M.Srinivasalu Reddy	Rs.170.00 Crores	Suit pending in Company Court
J.M.Panday	Rs.37.02 Crores	Suit pending in Company Court
Alsa Group	Rs.19.50 Crores	Suit pending in Company Court
Pradeep Kothari	Rs.15.00 Crores	Ordered to pay Rs.20 Crores
Thiyagaraja Chettiar	Rs.8.55 Crores	Ordered to pay Rs.10 Crores
Other Borrowers	Rs.8 Crores	Suit pending in Company Court
TOTAL	Rs.258 Crores

1. Total no. of borrowers: 83.
2. Amount due from the borrowers Rs.258 Crores (Principle alone).
3. Sreenivasalu Reddy has paid Rs.57 Crores and furnished corporate guarantee for Rs.170 Crores.
4. He also filed consent memo before the Honourable High Court to remit Rs.52 Crores. Matter is pending.
5. Pradeep Kothari agreed before the Company Court to remit Rs.20 Crores  (Rs.1 Crore paid during January 2007 and remaining amount to be paid in 6 months after obtaining CMDA approval for the property at Egmore).
6. Thiyagaraja Chettiar agreed for Rs.10 Crores and paid Rs.6 Crores. Of the balance Rs.4 Crores he has paid Rs.1.5 Crores in the last week of March 2007 and agreed to pay the abalance Rs.2.5 Crores on 4th April 2007. Rs.2 Crores paid during April.
7. For the remaining borrowers suits are pending before the Company Court.

  SLP’s PENDING

1. RBF, CEO Tr.Rajagopal and A1-Subramaniam filed SLP against the orders of the 1st Bench, High Court fixing responsibility on the CMD Tr.Subramaniam and his son Murugabarathy (Matter pending).
2. One SLP is pending for release of passport of the accused Murugabarathy.
3. One more SLP has been filed by Ex. CEO Rajagopal against the dismissal of the A/B ordered by the Honourable High Court (Cr.No.28/2005).

  IV.       DETAILS OF PROPERTIES:

  1.   205 properties have been attached worth Rs.415 Crores (of this Rs.390 Crores worth properties belong to Srinivasalu  Reddy who is acquitted), hence further properties are being identified.
  2.   3 GOs obtained in GO.Ms.No.1215/2000, 559 and 809/2001 and interimly attached by Chief Small Causes Court.
  3.   3 company properties worth about Rs.36 Crores are available for sale (now with Official Liquidator).

  V. EFFORTS TAKEN BY EOW
  1.   6 final reports were filed of which 2 CCs ended in conviction. Fast track Court confirmed the conviction.
  2.   Borrowers like Sarath Kumar, Binny Group, Kaliappa Vijayalakshmi, M.Sivaram, Ramkumar etc, cleared their arrears.
  3.  Following up the SLP’s pending before the Honourable Supreme Court of India.
  4.  Liaison with the OL with regard to the sale of the company properties.
  5.  Expedite the collection of money from borrowers.
  6.  4 borrowers were arrested.
  7.  One of the borrowers/accused Pradeep Kothari returned from Arab Country, through Interpol and agreed to settle his due amount during January 2007 (Pending in the court).
  8.  Identification of personal properties is in progress.
  9.  55 individual Counters have been filed for the discharge petitions and the proceedings are being expedited so as to commence trail.
  10.To confirm the conviction before the Honourable High Court, Madras against the Criminal Revision petition pending filed by the six accused.
 

VI. Latest development:
     So far 28 % of the deposit has been disbursed to all the depositors equally. One property at Sterling Road was auctioned for Rs.2.35 Crores, after the Company Court ordered to release 3% on prorate basis to all the depositors.

  VII.     Request to Depositors:
    For further information the Depositors are requested to contact: -

Official Liquidator, Esplanade, Kuralagam, Chennai-01. PH: 044 – 25342127 and 044 – 25341473.	The Chairman, RBF Nidhi Ltd., No.8, West Cott Road, Royapettah, Chennai-14. Ph: 044 – 28481180.
Tr.B. Shuanmugarajan, IO, Dy. Supdt. of Police, EOW II, Chennai-02. Mobile No. +91 - 9486070870.