MERCANTILE CREDIT CORPORATION
(M.C.C Finance Ltd.)

 I. Gist of the Case:

    The MCC Finance Ltd is one of the group companies of M.A.C. (M.A.Chidambaram, a well known industrialist of India). A case was registered against the company and its directors, on the complaint of the Dy. General Manager, Reserve Bank of India, Chennai on the direction of the Honourable High Court of Madras. Case is under investigation. Company was liquidated and the Administrator Tr.A.Raghavendra Rao was appointed by the Honourable High Court of Madras.

 II. Accused Details:

 III. High Lights

1. Cr.No.10/2000, U/s.420, 409 & 120 (b) IPC
2. Total amount involved: Rs.203 Crores
3. Total No. of depositors: 1, 04,389
4. Police Complaints: Rs.10 Crores (883 depositors)
5. Amount settled: Rs.1.85 Crores to 32, 000 depositors (65% as full and final settlement was ordered on  as per the directions of the Honourable First Bench of Madras High Court).
6. Balance amount Rs.1.5 Crores.

 IV. Efforts taken by EOW-II

    Steps for repayment are taken to settle 4% to the depositors through the Administrator who have deposited Rs.20,000 and the settlement is in progress..

 V. Latest Development:

    The Administrator of MCC has filed a petition before the First Bench of Hon'ble High Court vide CMP No. 10911 of 2006 in OSA No. 293 of 2002 seeking orders on following prayer

 1. Permit the Administrator to disburse Rs.3.04 Crores pending with him in a ratio of 5% to all the depositors to whom the amount due on 31.1.1999 does not exceed Rs.20,000.

 2. Permit the Administrator to incure the necessary expense for disbursement and balance 1% may be retained by the Administrator for the next 1 year for future claims.  

 3.  The above request were granted by the Hon'ble Chief Justice of High Court of Madras on 21.7.2007.

 VI. Request to Depositors:

    For any further details please contact: