Investors received a registered letter from the company in January 1998 asking them to return the post-dated cheques issued by the company. "We have issued post-dated cheques. We hereby place on record that due to some technical problems, the post-dated cheques have been suo moto marked under stop payment. We request you not to deposit the cheque on the date of maturity. You are requested to return the post dated cheques within 15 days from the date of getting this letter," said the company letter.

The letter also promised that investors will be issued fresh cheques on receipt of post-dated cheques returned by investors. If the investors fail to return the post dated cheques, the company will not be held responsible, added the letter. But the company did not issue any fresh chequesand some of the cheques issued to investors also bounced, investors alleged.

Following this development, over 50 investors stormed the company's registered office at Goregaon and surrounded one of the directors demanding a written undertaking from him on a stamp paper that their money will be returned soon. Fearing that the mob might turn violent, the Goregaon police interfered and the director was kept in safe custody of the police station for a long time.

"A group of investors from Mumbai gheraoed one of the previous directors of the company who has been redesignated as the managing director of the company. Investors went to the company's Goregaon office and wanted to get the new MD and other directors to give a joint undertaking in a stamp paper that their money will be returned soon. As the MD refused to call other directors, the investor demand was not met," said one of the aggrieved investors.

Libra Plantation was floated by Omprakash Jogani, his son Lalith Jogani (now redesignated as MD) andothers.

According to SEBI, Libra Plantations has raised around Rs 16 crore from the public. "The money collected by the company will be more than this because the cash collections are not shown in the accounts. Plantation companies have been collecting money in cash as lot of people with black money were investing in this fashion," said another investor.

"I have invested Rs 2 lakh which I received when I took voluntary retirement from my company. A lot of friends and investors have also invested in the company," said an investor. Most of the investors were attracted by the 24 per cent return and capital appreciation offered by the company's agro projects.

When contacted, company officials were not available for comments. Like several other plantation companies, the company's bad days started when the Securities and Exchange Board of India (SEBI) started regulation of these schemes. As the companies are not allowed to collect money from the investors, they are finding it difficult to repay the investorswho are becoming restless. The company has promised that they will give a reply within one month, investors said.

It has been collecting amounts ranging from Rs 500 to Rs 1 lakh from investors offering teak and vegetable plantation schemes.