RBF Nidhi Ltd.

  I.Gist of the Case:

    On the Complaint lodged by Tr.Srinivasan to the CCB, Chennai on 2.09.1999 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:

Tr.A.R.Rao, till 2000

Tr.Sabhanayagam, I.A.S., (Retd), till 2002,

Tr.F.C.Sharma, I.P.S., (Retd) till 2005,

Tr.Vallinayagam, Justice (Retd) till 2006,

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.

Arrested: 06, A/B:03, Surrendered:17, Died:01, Discharged: 02 and Absconding: 01.

  III. High Lights:

Total amount involved: Rs.467Crores.

Total no. of depositors: 2,02,812

Police complaints: Rs.32 Crores (20, 000 depositors).

Amount settled: Rs.250.53 Crores @ 50%.

58, 738 depositors got their full amount (for deposits up to Rs.5,000/-).

Last refund made during May 2011.

Remaining amount to be settled: Rs.225.90 Crores for 1,44,074 depositors.

A Sum of Rs.15 Crores is available with OL for the next disbursement.

6 separate Police Final Reports were filed against 33 accused in C.C.Nos.11457, 11458, 11459/2002, 6411, 6412 and 12027/2003.

Two CCs ended in conviction.

Seven accused convicted for two years imprisonment and Rs.10, 000/- fine during March 2005.

Fast track Court confirmed the conviction during September 2006.

Criminal appeal filed by the convicted accused and is pending in Honourable High Court.

Trial proceedings pending in other C.Cs.

55 discharge petitions have been filed by the accused and arguments have completed 7accused discharged so far in which 1 revision case against A12 Murughabharathy filed in Principal Session Court Chennai and 7 are yet to be filed.

  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

Total No. of borrowers: 83.

Amount due from the borrowers Rs.258 Crores (Principle alone).

Sreenivasalu Reddy has paid Rs. 57,65 Crores and furnished corporate guarantee for Rs.170 Crores.

He also filed consent memo before the Honourable High Court to remit Rs.52 Crores matter admitted and disposed.  He was acquitted in the CMM Court trail in C.C.No.11457, 114558/2002.

Pradeep Kothari agreed before the Company Court to remit Rs. 20 crores and paid fully.

Thiyagaraja Chettiar agreed for Rs.10 Crores and paid Rs.6 Crores.

For the remaining borrowers 22 suits are pending before the Company Court. Filed by the O.L.after taking charge of the disbursement in this case since the Company Law Board was terminate on 31.10.2008.

  SLP’s PENDING

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).

One SLP has been filed by Ex.CEO Rajagopal against the dismissal of the A/B/ orded by the Honourable High Court (Cr.No.28/05

SLP 863/2008 fild by Bhuvaneswaran agaainst G.O.809/2001 Monwey and money group properties belong to Subramanian is pending for filling of the affidavit in the Supreme Court at New Delhi. The Counter affidavit pending for Approval of the Tamil Nadu Govt.

  IV.       DETAILS OF PROPERTIES:

  1.   204 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 G.Os obtained in GO.Ms.No.1215/2000, 559 and 809/2001 and interimly attached by Chief Small Causes Court.
  3.   5 Company properties worth about Rs.13 Crores are available for sale (now with Official Liquidator).

  4.   23 Properties in the name of the Chairman Subramanian were attached and handed over to the O.L.for valuation of the same as per High Court order for the liability of the accused Subramanian.

 

  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.   53 other Borrowers cleared their arrears except 22 suit cases pending foe Rs.122 Crores Mega Borrower J.M.Pandey whose liability is     Rs. 81 Crores now along with the interest for the loan amount of 37 Crores is pending for his counter and the NBW executed and he appeared in the court on 29.04.09.
  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 of Rs.20 Crores during January 2008.
  8.  Identification of personal properties is in progress.
  9. Out of  55 individual Counters filed for the discharge petitions 8 were disposed 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.
  11.Steps are being taken along with OL to disburse the next 10th  installment in August 2011.

 VI. Latest development:
     So far 48 % of the deposit has been disbursed to all the depositors equally. The Officially Liquidator did not receive enough bidders for the upset value fixed for the 4 properties available for the sale. Hence OL has sought permission from the High Court for re-auction for the properties Kodambakkam High Road and Nungambakkam.

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

Official Liquidator,
Esplanade, Kuralagam,
Chennai-01.
PH: 044 – 25342127 and
044 – 25271152

The Chairman,
RBF Nidhi Ltd.,
No.8, West Cott Road,
Royapettah, Chennai-14.
Ph: 044 – 28481180.

Tmt.Anarkali Begum I.O.,
Dy. Supdt. of Police,

EOW II, Headquarters, TNHB Complex, 3rd Floor,       2nd Avenue, Anna Nagar, Chennai-40.
Mobile No. 9443419650