Midas Touch Gets Nod For Writ Against Canstar

Canstar unitholders have given a mandate to Midas Touch Investors Association to file a writ on their behalf against Canara Bank, the trustees of the scheme. This is to ensure that the scheme pays to the unitholders what was promised in the prospectus rather than on the basis of the net asset value (NAV).

A meeting of the unitholders discussed the pros and cons of the issue and the merit and demerits of either going into a writ or filing a public interest litigation (PIL).

According to Virendra Jain, honorary secretary, the PIL also has a reverse side.

If the verdict, according to available legal advice, goes against the unitholders who have filed the petition, then it will be applicable to all the unitholders, and even those not connected with the PIL would not be able to move the courts for redressal of grievance.

 

"About 1.5 lakh unitholders have not given us the mandate to file PIL on their behalf and we have no business to make a move which may pre-empt their right to seek redressal," said Jain.

If the writ is filed and if it succeeds then only those investors will get redressal who are the members of the association.

The debate between the two viewpoints is on, but it is likely that a writ will be filed rather then a PIL.

There was a general feeling that investors have been taken for a ride and many of them named other companies as well, who have misled the investors.

A meeting of the brokers will shortly be held in the stock exchange requesting them to contact their clients who are unitholders. The writ is likely to get filed latest by next month when the courts reopen after the summer recess.