NEW DELHI, June 9: The Delhi High Court has appointed official liquidators to immediately take charge of all assets of three JVG group companies JVG Finance, JVG Securities and JVG Leasing."The provisional liquidator shall take immediate custody of all assets as directed, and if necessary shall also seek police assistance in executing the aforesaid order," vacation judge Arun Kumar said.
The court restrained directors and other officials of the three companies from disposing of any of the assets of the companies and asked them to file their replies by July 28, the next date for hearing.
The judge also asked liquidators, attached to the court, to seek assistance of a firm of chartered accountants in compilation of accounts of respondent companies.
The High Court order came on three separate winding up petitions filed by Reserve Bank of India (RBI) under Section 45 MC of the RBI Act, 1934, and Section 433 of the Companies Act, 1956. Earlier, the Company Law Board had also issued summons to alldirectors of JVG Finance and JVG Securities, but they failed to appear before CLB under the pretext that notice was not served to them. The Reserve Bank has also initiated criminal proceedings against directors of two JVG group companies including Hoffland Finance.
The central bank, in its petitions, alleged that the three JVG group companies had violated a number of directions issued by the central bank for non banking finance companies (NBFCs) from time to time.
The petitioner alleged that JVG Finance had net owned fund (NOF) of Rs 1,173.82 lakh as on March 31, 1996, and aggregate deposits accepted by the company was Rs 8,882.01 lakh which was 756.68 per cent of NOF.
"The company had accepted deposits from public during the year ended March 31, 1996, much beyond permissible limit of 25 per cent of NOF (Rs 1173.82 lakh)," RBI alleged.
The nodal bank also alleged that the figure shown in application form of deposit which the company was entitled to raise, was incorrect.
RBI submitted that JVGSecurities also indulged in similar violations of NBFC (Reserve Bank) directions, 1997, and NBFC acceptance of public deposits (Reserve Bank) directions, 1998.
Inspection of the company by RBI revealed that JVG Securities had NOF of Rs 11.33 lakh as on March 31, 1997, and inter corporate deposits (ICDS) worth Rs 151 lakh which was much more than permissible limit (double the NOF).
"The company had not maintained liquid assets as required by Section 45ib of RBI Act, 1934," the petition alleged.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
