NEW DELHI, July 7: Fintra Systems Limited, which had used the share-security route to lure depositors, is facing rough weather today. Depositors are trying to pull out their money, while some have filed FIRs with the police. The company offered very high rates of interest with shares of its group company and other companies as security to depositors. A case is pending in the court.

The company's managing director and main promoter, Sunil Shakt, claims the company borrowed funds and used the same to purchase shares of a Delhi-based company in order to shore up the share price ahead of the latter's rights-cum-public issue. According to Shakt, the company failed to pay Rs 1.6 crore to Fintra Capital, a group company listed on the Delhi Stock Exchange, for the shares purchased on its behalf.With the failure to get back the funds, Fintra faced liquidity problems and succumbed to the high cost of borrowed funds, Shakt claims. Sources claim the problems started when the company's FD base rose to around Rs 10 crore and the company had a monthly interest liability of over Rs 25 lakh. Frequent bouncing of cheques also forced the Bank of America's Connaught Place branch to close the company's account.

The company, according to an ex-employee and an FD holder, Col Pandey, is believed to have an exposure in the range of Rs 10-12 crore (FDs of all types including secured, unsecured and received in cash) with an investor base of around 800 fixed deposit holders. The court, however, has put the figure at just over Rs 3 crore.Fintra Systems lured investors with high interest rates in the range of 30 to 42 per cent per annum over and above incentives paid in cash and kind. The incentives were as high as 5 per cent over and above `guaranteed minimum profit' of 3-3.5 per cent per annum. The company used to refer the monthly interest as minimum profit.The company also gave instant post-dated cheques, guaranty instruments and a copy of agreement. Initially, the company gave shares of KLP Finance as security to the FD holders. The company was later purchased by the Fintra group and the name was changed to Fintra Capital services.The FD holders were stuck as the Fintra Capital Services was suspended from trading on DSE in October and was last traded at Rs 16.5 on October 31, 1996.Also, some of the securities given to the FD holders against the FDs were of known companies like ITC Limited and Surya Roshni. However, to the FD holders dismay, some of these shares received as security by them turned out to be forged and stolen.At least three FIRs have already been filed against Sunil Shakt, with the latest one filed on May 20 at the Greater kailash police station in New Delhi. Shakt s now out on an interim bail.The court has ordered Fintra to pay back the amount by selling the properties held by the promoter. Shakt says he will be able to pay the outstanding amount on proportionate basis in proportion of the FDs held by the deposit holders.Shakt claims that various properties held will realise around Rs 80 lakh. The company also holds 25 per cent equity in Gurdarshan Leather, a listed company with an equity base of Rs 3 crore.

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