The Madras High Court has directed the registry of its Madurai bench not to entertain any pleas moved by the directors of the Disc Assets Lead India Limited which is allegedly involved in a Rs 1,130 crore investment scam.
The court also directed it to transfer all the existing cases connected with the scam to the principal bench.
The first bench of Chief Justice Indira Banerjee and Justice Abdul Quddhose passed the order recently in view of allegations that the directors were trying to get away from the criminal cases registered against them by approaching the Madurai bench.
The court had earlier said it found no ground to modify its order appointing a committee to settle dues of over 12 lakh depositors who had put more than Rs 1,137 crore with the firm for purchase of plots over 11 years ago.
When the case came up, counsel for the committee informed the court that the directors were not cooperating with the probe and wanted it to summon them.
Recording the submissions, the bench said, "Cholamandalam Securities Ltd is directed to sell the shares in the Demat account of the company and deposit the proceeds thereon in the joint account of the committee."
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