MUMBAI, SEPT 30: The Reserve Bank of India has managed to get a provisional liquidator to take charge of all assets and properties of Hyderabad-based Asia Pacific Investment Trust (APIT). Following a petition from the RBI, Andhra Pradesh High Court on September 7, passed an order for appointment of official liquidator as provisional liquidator to take charge of the assets of the company.Further hearing on the matter will be taken up on October 25, 1998. APIT, a non-banking finance company, was prohibited by RBI from accepting deposits on July 9, 1997.
This followed inspection of the company's books after the central bank received numerous complaints from investors about default in repayment of deposits and interest. The company was also precluded from deposing off its assets without prior approval of the Reserve Bank.
The company was also refused registration as an NBFC on May 31, 1998 after it was found that it has not managed to improve its financial position. The overdue deposits of the company wasRs 32.49 crore as at the end of February, 1998.
Meanwhile, some depositors moved the Company Law Board for issue of orders for repayment of their deposits. Following the failure of the company to act on CLB order decided to take action against the company for recovery of investors' dues. RBI filed a winding up petition in Andhra Pradesh High Court, the hearing of which is still on.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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