Majority Of Consumer Grievances Are Investments-Related

Minoo Shroff of Salapose Road, Ahmedabad, had deposited Rs 25,000 with Morepen Laboratories in December 2001, at 11 per cent interest.

Although the deposit matured in February 2003, the company, according to Shroff, failed to pay. Shroff approached the Ahmedabad based Consumer Education and Research Centre (CERC). The centre then took up the matter with the Registrar of Companies, New Delhi, in July.

Gaurang Shah, a resident of Thaltej area of Ahmedabad, had five fixed deposits with Sun Earth Ceramics. All deposits matured between May 2002 and January 2003, but the company did not pay the amount, says Shah.

CERC again took up the matter with the defaulting company. The centre did not take up the matter with the vanishing companies division of the Securities and Exchange Board of India (SEBI), as the letters addressed to the company are being received back undelivered.

 

Kinnari Kantharia of Vasna area of Ahmedabad approached CERC in March this year, saying her late mother Dharmika Kantharia held shares of Reliance Industries and VIP Industries, jointly with sister Khyati Katntharia, who also died.

While her mother expired on July 23, 1997, her sister expired on August 27, 2001. She requested the registrar Karvy Consultants for transfer of shares in her name, but the company sought a succession letter.

It was only after CERC intervened and requested the company to satisfy with execution of an indemnity bond and affidavit that the transfer of shares took place.

Hari John of Chennai sent share certificates of 200 shares to May and Baker (India) Ltd in January, 2000, for issuing fresh certificates since the company was taken over by Rhone Poulenec India (RPIL).

She also wrote letters to Sharepro Services, which was managing the affairs of the new company. She got letters from Sharepro, seeking proof of despatch of shares.

Later, the complainant came to know that RPIL had been taken over by Nicholas Pirmal India and that she had been allotted 350 shares. She wrote three letters between June 2002 and December 2002 to Sharepro, seeking shares of NPIL.

As there was no reply, Hari John contacted CERC. Sharepro then informed CERC that they are no longer the registrar of the company and gave the address of the new registrar. Later, the complainant received her shares.

These are just a few of the many complaints that the centre has been receiving. In fact, 65 per cent of the cases that CERC has received in the past one year are from investors on matters connected to finance, fixed deposits, mutual funds and the like.

Says CERC managing trustee Manubhai Shah