Excelsior Correspondent
JAMMU, Nov 26: In a petition filed by Welfare Association Share Holders/ Depositors with the prayer to treat the same as Public Interest Litigation, Justice Hasnain Massodi disposed of the CMA with the direction to Registry to place the matter before the Chief Justice for appropriate orders as warranted under Rules.
In the petition, it has been submitted a company under the name and style of M/s Shine Finance and Investment (India) Ltd was incorporated in the year 1986 under the Companies Act. Subsequently Reserve Bank of India granted Certificate of Registration under the Reserve Bank of India Act. The company started alluring the people to make investment and deposits against handsome rates.
The people started depositing their money in the company on the assurance of its Managing Director and other Directors. Subsequently, respondents also established two other companies under the Companies Act namely Sheen Agro and Plantation Ltd and Shine Road Link Ltd.
When the depositors on completion of their fixed deposits started claiming their maturity amount, the private respondents started delaying the matter on the one pretext or the other. Later, they flatly refused to refund even the principle amount to the depositors.
According to the petitioners, private respondents have collected Rs 25 crore of rupees from the poor persons and were trying to grab the deposits. The Managing Director/Directors have purchased huge properties moveable and immovable by investing the deposits made by the people. Even some buses are also purchased out of the deposits of people.
The intention of the private respondent throughout was to defraud and cheat the depositors. Even the Reserve Bank of India and concerned functionaries did not perform their statutory duty to regulate and control the company under the provisions of the RBI Act, the petitioners said, adding “when the respondent MD and Directors are approached they are telling that they have transferred the company to new management but the new management states that they have not taken any liability from the so-called ex-management”.
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