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TMI Blog2014 (4) TMI 1316X X X X Extracts X X X X X X X X Extracts X X X X ..... to make slab-wise disbursements to investors, who had deposited/paid Rs. 5000/- in a graded manner, did not appeal to the Court because the proposal was premised upon the assumption that those who deposited more than Rs. 5000/- (the principal limit proposed to be finally supplied with one-time interest payment) were affluent. In these circumstances, the Court directed the Committee to revise the claim and apply a non-discriminatory principle because it was felt that an assumption that someone who deposited Rs. 20,000/- in 1996 or 1997 is more affluent than one who deposited Rs. 5,000/- would not be accurate. It is quite likely that those who participated deposited amounts higher than Rs. 5000/- have not parted with substantial amounts of their live savings could not ruled out especially because of the nature of claims held out by the GFIL and its group companies. With this objective, the Court examined the feasibility of applying one principle, i.e. for instance, making-up one-time payment to all depositors to the extent of Rs. 5,000/- with a one-time interest payment. Court was informed that this would take care finally of the claims in respect of 1110098 depositors who had paid R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out the affairs and manage the properties, and sell the assets of the Golden Forests (India) Ltd and its group companies. 2. The brief background of the case is that the Golden Forests (India) Ltd (GFIL) was incorporated in 1987. Between the years 1991 and 1997, its promoters set up over 100 companies, including Golden Tourist Resorts and Developers Ltd (1991), Golden Lease Finance Ltd (1994) Golden Projects Ltd (1996), Himachal Country Resorts Ltd, etc (hereafter called "GFIL group"). Golden Projects Ltd introduced a number of investment schemes promising handsome returns lured investors and depositors, and in 9-10 years collected several hundred crores of rupees. Huge tracts of lands and property were acquired by it; likewise a large number of properties were acquired in the name of Golden Tourist Resorts and Developers Ltd and others in the name of Himachal Country Resorts Ltd and some other companies. 3. The GFIL group were controlled controlled by a family consisting of A. L. Syal, R. K. Syal, Neena Syal, Pamila Syal, Bimla Syal (since dead), H. K. Sinha (Brother in Law of R. K. Syal). In 1997, the Securities Exchange Board of India (SEBI) inquired into the activities of GF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. K. Arora, DGM, RBI, Chandigarh as its whole time member on the committee. The SEBI appointed Mr. S.K. Sharma as a member on the Committee. Subsequently, the Supreme Court, on 05.09.2006, replaced Mr. P. K. Arora, DGM, RBI and Mr. S.K. Sharma, DGM, SEBI with Mr. H. L. Randev and Mr. B. S. Bedi, both former District and Sessions Judges were appointed Members on the Committee. 5. The Committee had, during pendency of the matters before the Supreme Court, invited claims from the depositors/investors of Golden Forests (India) Ltd by advertisement dated 25.10.2004. As required by the Supreme Court, the period for the receipt of the claims from the investors and creditors was extended by 3 months and this information was widely advertised in leading vernacular newspapers, in all States. Advertisements were published and the period was extended from 19.2.2005 to 20.5.2005. The period fixed in the first advertisement expired on 24.1.2005. Nevertheless, the Committee continued to receive the claims even after the expiry of that period and later the claims were received during the extended period. The Supreme Court in its order dated 05.09.2006 fixed 10.08.2006 as the cut-off date for re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the possession of such properties even with the help of police, if and when required, and to demarcate the lands belonging to the companies in accordance with the revenue entries relating to the year 1998 and onwards. 34. Chief Secretaries and the DGPs./IGPs. are directed to issue suitable directions to all the Deputy Commissioners, police officers and civil servants to render such help. 35. The civil as well as police authorities are also directed to take action against the illegal encroachments and construction adjoining the Resort at Billa. Revenue authorities of the respective States are also directed to help in removal of such illegal encroachments. C. Directions regarding sale of properties: 36. Directions for sale are sought in respect of the properties at Jharmari, lands at Village Kot Billa, Jaswant Garh and other adjoining villages and a Resort at Nalagarh, and the mode and procedure for the sale of the properties of GFIL, possession of which has been taken. 37. The Committee is put at liberty to put to sale the properties at Village Jharmari, lands at Village Kot Billa, Jaswant Garh and other adjoining villages and a Resort at Nalagarh and other propertie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt of Punjab and Haryana on 20th January, 2003 and the restraint order passed on 17th August, 2004 by this Court shall be ignored and the Committee would be at liberty to get hold of those properties by taking vacant possession thereof with the help of civil and police authorities and deal with them in accordance with the directions already given." 7. The payment to the depositors was to be made after the properties were sold and payment shall depend on the realization of proceeds of sale. The Committee states that there are about 15 Lakh investors who have not been paid. On 15.10.2008 the Supreme Court made the following order: "……..As regards the sale of properties is concerned, the Committee may make appropriate publication regarding the sale and sufficient notices be issued to the prospective purchasers by publishing the same in the local newspapers having wide circulation in the area where the property is situated. Any sale conducted by the Committee shall be based on valuation made by either by the Committee or by other approved valuer and upset price is fixed before sale is finalized. The sale is, however, subject to the confirmation by this Court. As soo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance with law. If the High Court feels that any further Arbitrator or Commissioner is required to be appointed, the High Court may pass appropriate orders. All the matters i.e. transferred cases, interim applications, contempt petition as well as the writ petition are directed to be transferred to the Delhi High Court. The parties are directed to appear before the High Court on 15th March, 2010 and thereafter the High Court is requested to pass appropriate orders in these cases." 8. The applicant relies on an order of this Court, made on 17.01.2012. The said order reads as follows: "CM NO. 20351/ 2011 This application is dismissed as not pressed in view of the statement made by learned counsel for the respondent Chairman, Committee of Golden Forests Ltd. & Others, that more than Rs. 400 crores have already been collected by the Committee on disposal of various assets of the company. He further informs that another property is sold for Rs. 98 crores approximately and the amount shall be realized soon and with this, the collection would swell to about Rs. 500 crores. There is a proposal to devise a scheme vide which the Committee shall now start disbursing the said amount t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idavits. On 01-05-2013, the Court, after considering the issue of disbursement of the amounts lying with the Committee, was of the opinion that the proposal (for disbursement of funds scheme framed by the Committee), giving preference to 'small' investors in distribution of process, is not entirely equitable. The Court directed the Committee-GFIL as follow:- "This is to ensure that the amount lying with the Committee are equitably distributed in accordance with non-discriminatory principle. It is, of course, open to the Committee to adopt an approach for reimbursing the depositors beyond Rs. 5,000/- or having regard to the quantum of deposits made by them and give a preferential treatment to the small investors. In other words, this Court feels that before sanctioning the scheme which has been proposed, the Committee should work out another scheme which envisions the disbursement by adopting a slab or some such device so that all investors are treated alike in terms of the amounts deposited by them and proportionate, as the case may be." 11. The above revised scheme for disbursement of monies to depositors of the GFIL or its group companies made on 20.05.2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.3000 to rest of the investors (without interest) Amount deposit - SLAB No. of investors Principal Amt./Part Payment (Rs. In crore) Interest Rate Interest Amount Total Amount to be paid (Rs. In crore) 1-3000 861654 96.86 30% 29.06 125.92 3001 and above 612261 183.68 0% 0.00 183.68 Total 1473915 280.54 29.06 309.60 Note: i. The Committee -GFIL is having Rs. 433,41,58,613/- available as on 31 March 2013 in the shape of FDR in its Bank Accounts. ii. There are certain properties of the value Rs. 138 crores (actual Bid amount received without interest accrued thereon), sale of which are incomplete, therefore, this amount has to be kept aside in calculating the available funds. So, the Committee is left with Rs. 302 crores only. However, the Committee is expecting Rs. 10 crore approx. to be added as interest. Financial Status and mode of distribution: 5. The Committee (GFIL) as on 31.03.2013 has in the Fixed Deposit Rs. 433,41,58,613/-. We have in our earlier scheme made certain recommendations, namely for appointment of Disbursing Agency either SEBI or Reserve Bank of India or any other suitable agency for payment of money slab wise, that is, upto Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount deposit - SLAB No. of investors Principal Amt./Part Payment (Rs. In crore) Interest Rate Interest Amount Total Amount to be paid (Rs. In crore) 1 to 4000 897563 110.50 30% 33.15 143.65 4001 and above 576352 230.54 0% 0 230.54 Total 1473915 341.04 0 33.15 374.19 Calculation-5 Final payment to investors upto Rs. 5000/- with one time 30% interest and interim payment of Rs. 5000 to rest of the investors (without interest) Amount No. of Principal Interest Interest Total deposit - SLAB investors Amt./Part Payment (Rs. In crore) Rate Amount Amount to be paid (Rs. In crore) 1 to 5000 1110098 216.25 30% 64.88 281.13 5001 and above 363817 181.91 0% 0 181.91 Total 1473915 398.16 0 64.88 463.03 PROPOSALS ON THE BASIS OF CALCULATION NO.3 AS CONTAINED IN ANNEXURE A-1 Proposal-1 Final payment to investors upto Rs. 3000/- with one time 30% interest and interim payment of Rs. 3000 to rest of the investors (without interest) Amount deposit - SLAB No. of investors Principal Amt./Part Payment (Rs. In crore) Interest Rate Interest Amount Total Amount to be paid (Rs. In crore) 1 to 3000 861654 96.86 30% 29.06 125.92 3001 and ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dr. Namvati was the main source of information with respect to the assets of the companies. That report was in 10 volumes and based upon its reading, the Committee prepared state-wise report of assets. Annexure A-4 to the affidavit of 23.10.2013 of Sh. H.L. Randev, a member of the Committee shows that a total of 6323.9 acres spread over five different States belong to the GFIL. The Committee also stated that apart from the information, it had collected further information with respect to assets not included in the valuation report spread over seven states, i.e. Punjab, Odisha, Karnataka, Andhra Pradesh, Madhya Pradesh, Delhi and Himachal Pradesh otherwise to the extent of 3520.90 acres. Thus, according to the information received by the Committee, the total land of the Golden Forest groups was 9914.90 acres. The Committee revealed that 485.73 acres had been sold and 2476.73 acres were put to sale but the transactions could not be completed. A consolidated chart of all the holdings were disclosed in the form of Annexure A-6. Furthermore, the Committee mentioned that some litigation pertaining to some properties are pending in this Court and in the Supreme Court, notably, SLP No. 24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The Committee was of the opinion that such amounts had to be kept aside in case the Court required their refund. Thus, the total funds as on 03.03.2014 available with the Committee stood at Rs. 334.25 crores. 14. The applicant in its response and in the submissions urges that a complete picture as to the assets of the GFIL and its group companies has always remained unclear and that in these circumstances, it would be appropriate that an Advisory Board ought to be constituted which consists of one member of SEBI, a member of RBI and a representative of one of the investors. The Board should identify and ascertain the exact number of properties of the company spread throughout the length and breadth of the country and thereafter, every effort should be made to ascertain the actual liabilities of all the investors of GFIL Group of companies. It is suggested that if the Advisory Board fails to take over the assets of GFIL companies spread throughout the country, the Board should hand over the land unit to the willing owners who originally deposited Rs. 5,000/- and above and was allotted units of land given in the guarantee-cum-performance deed by the GFIL. It was urged that the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investors whose claims have been verified is roughly 15 lakhs. Of these, those who have invested upto Rs. 1000/- are 652088 and those who have invested between Rs. 1000 and 2000/- are 139896 in number. 65243 investors deposited between Rs. 2000/- and Rs. 3000/- and 35762 deposited amounts ranging between Rs. 3000/- and 4000/-. Those who invested in the slab of Rs. 4000/- and Rs. 5000/- are 211761. 17. Given the constraints and limitation as well as the uncertainities associated with the task of applying a uniform principle to ensure fairness to investors, the Court had heard submissions on behalf of the Committee, the SEBI and the representatives of investors. Initially, the suggestion of the Committee to make slab-wise disbursements to investors, who had deposited/paid Rs. 5000/- in a graded manner, did not appeal to the Court because the proposal was premised upon the assumption that those who deposited more than Rs. 5000/- (the principal limit proposed to be finally supplied with one-time interest payment) were affluent. In these circumstances, the Court directed the Committee to revise the claim and apply a non-discriminatory principle because it was felt that an assumption t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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