HC directs Madurai bench registry not to entertain pleas by firm's directors

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."

"Since the sale is on account of the company which has a PAN card, there can be no question of insistence of any separate PAN in the name of the committee or PAN card of any of the committee members," it said.

The court had in October last year appointed retired Jammu and Kashmir High Court Chief Justice N Paul Vasanthakumar as the head of the nine-member committee.

It had then said it shall function as the administrator of the company, facing action by the SEBI for some violation.

The company had in 2006 floated schemes for purchase, development and maintenance of agricultural land by way of instalment payment and cash down plans.

A total of over 12 lakh customers had invested more than Rs 1,137 crore in the Madurai-based estate company's schemes, but they were neither alloted the plots nor refunded the deposit money.