Newly elected MP and president of the IGF Kirit Somaiya told The IndianExpress that they would issue a public notice seeking complaints frominvestors who have made deposits with this company so that they couldinitiate proceedings in the special court appointed by the government. Acomplaint has already been made to Director General of Police Arvind Inamdarbesides filing a complaint with the Company Law Board (CLB).Somaiya was in the city to attend the State executive meet of the BharatiyaJanata Party (BJP).

Until now, investors who failed to recover their deposits from Non-BankingFinance Companies (NBFCs) virtually had no platform to address theirgrievances. However, according to a new law, if a few depositors gettogether and file a complaint with the local police station or the districtcollector, immediate action has to be taken against the concerned party. Aninquiry is conducted following which the Home Secretary will appoint aspecial officer usually a deputy collector to take charge of the propertieswhich are put up for sale following the hearing of the case in a specialcourt. Seven such courts have been appointed. In Pune, the cases will bedealt with by the additional sessions judge P V Gupte.

Somaiya said similar action had been initiated against a company in Mumbaiwhere five properties including a hotel were taken into custody by thegovernment.

KIFL had recently sent letters to depositors informing them of theirinability to repay depositors with effect from August 31, 1999. The letteralso urged depositors to bear with the company till the revised paymentsplan is issued by the CLB. The company came into spotlight with the reportsof Vijay Kirloskar selling off his stake to Harisingh Champawat fromAhmedabad.

KIFL has around 60,000 depositors in the country with 30,000 depositors inPune alone with the deposits valued at Rs 56 crore and Rs 44 crorerespectively. More than Rs 150 crore of the company are stuck in recoveries.

The total asset base of the company is around Rs 150 crore. Somaiya expectedsome action to be initiated against the company in a month's time.

The IGF plans to take up the case of the Ind Prakash scheme launched by theIndian Bank Mutual Fund in the year 1992. The equity linked scheme hadassured three times the amount invested. A meeting has been convened inMumbai on November 25.