Consumer Issues
Former chairman of Helios and Matheson among three top executives arrested
Chennai police have confirmed the arrest of H&M’s ex-chairman V Ramachandran, CEO & MD GK Muralikrishna, and director Sai Yerra subsequent to our report
 
The Economic Offences Wing (EOW) of Tamil Nadu police has reportedly arrested three directors of Helios and Matheson Information Technology (H&M) for failing to repay deposit and interest to several depositors. Those arrested by the EOW include, H&M’s former chairman V Ramachandran, the company’s chief executive and managing director GK Muralikrishna, and director Diwakar Sai Yerra. According to our sources, these people are behind the bars since 1st April as the lower court denied them a bail.
 
After receiving several mails and messages from depositors and shareholders of H&M about the arrests, we have been trying to get the news confirmed by authorities for the past four days. However, our emails, SMS sent to top officials of Tamil Nadu EOW remained unanswered until writing the story, and we would incorporate their views as, and when we receive it. We sent emails to Dr Prateep V Philip, Additional Director General of Police (EOW), with a copy to Superintendent of Police (EOW). We also sent SMS to Jesu Rajan, in-charge DSP, who is investigating the case, as per the information provided by the office of SP, EOW, Chennai.
 
H&M also not informed the stock exchange about these arrests. Its last regulatory filing talks about the company’s petition before Company Law Board (CLB) seeking more time to repay depositors and investors.
 
Earlier, the Madras High Court has issued a notice to (H&M), an unfancied software company, after admitting a winding up petition filed by investors and depositors. H&M has been defaulting on repayments for fixed deposit and interest dues since last several months. Chennai-based senior lawyer R Venkatavardhan had filed the winding up petition, a copy of which is available with Moneylife.  
 
While several depositors and investors are sending letters, notices to H&M for bounced cheques, while the company continues to report good results. Earlier in January, H&M reported a 35% jump in its net profit to Rs74.12 crore for the 12 months to end September 2014, even though it was unable to pay salaries or repay fixed deposit-holders.
 
The complaint alleges that H&M is in such a grave cash flow crisis that most of its post-dated cheques (principal and interest) for fixed deposits have bounced due to of 'insufficient funds'. This fraud is evidently being perpetrated to prop up the valuation of the company so as to fraudulently obtain loans from the banks through pledge of shares and to present a façade of credibility to the public at large. This issue has all the makings of a major scam that is bound to affect thousands of investors, depositors and creditors including banks," the complaint reads.
 
Another interesting aspect in this episode is the share price movement of H&M. The company recorded its 52-week high at Rs145.50 on 7 October 2014. After that, it continued to fall till 27th March, when it hit its 52-week low of Rs38. On the same day, H&M issued a release claiming 'revenues' from a skill development programme. In addition, the company also informed the stock exchanges about its petition before the Company Law Board.
 
On 27th March, when H&M share price hit a 52-week low on the BSE, the company issued a statement about its skill development program. It said, "...the group's business in skill development program under the National Skill Development Corp National Skill Certification and Monetary Reward Scheme (STAR Scheme) in its first year has gone well. Second year of operations is to comment for the skill development program under the aegis NSDC. Similar programs under Ministry of Rural Development (MoRD) are also underway. This is yet another initiative by the group to create a revenue stream that is non-linear unlike the classic information technology business that is directly proportionate to the number of employees deployed."
 
The H&M regulatory filing on 31st March says, "the Company has filed an application before the Company Law Board, Chennai, as provided in section 74 (2) of the Companies Act 2013, seeking extension of time up to 12 months for all deposits that fell due for repayment after March 31, 2014. Necessary public notice has been published in newspapers and also intimation sent to all the depositors in this regard."
 
No wonder, after hitting a 52-week low at Rs38, the share price of H&M jumped 54% as on 10th April.
 
 
But is this new or is this happening for the first time? Moneylife readers know that we have been writing about H&M’s failure to pay back fixed deposits (FDs) since July 2014 when the advance cheques issued by it had bounced. But the stock exchanges, which mechanically verify news reports, apparently do not bother to read such signals or question the declarations made by H&M. However, investors began to panic and the stock price dropped 3% on 21st January (after our report was published) and another 12% (to Rs66) on 22nd January. What is rather shocking is that the share continued to hold firm even when employees are tweeting about not being paid and the notice for a winding up petition was been served on the company by unpaid depositors.
 

User

COMMENTS

Lakshmi Jandhyala

6 months ago

it is high time the court puts a stop to this fraud and repay all the investors. Small and retired personnel have invested their savings with H&M and survival has become a challenge. Need help ASAP !!

kannan

1 year ago

I am a small investor and bought H&H stock during 2006 till now there is no gain. Need help.

kannan.r

1 year ago

I am holding H&H share since 2006 and it is loss to small investor like me.Need help.


kannan.r
Mobile : 9841576796

Ravi

1 year ago

I am a victim of H&M worked for BankOfAmerica, hyd. They have not paid my salary. After deducting taxes, they are not giving the form16.
What about of the future of lot of ppl like me, who when join other companies, required to show form-16s and other IT proofs.

Govt. should immediately shutdown the company and not to allow to continue this Fraud any further.

lalit

1 year ago

what hearing have not recd any such communication from the company about the case being filed in High Court...
My Fd matured on 20.12.2014.please help.

Vinay Pareek

1 year ago

Any updates on the H&M High Court hearing which was scheduled on 13 July 2015. Hope for investors like us there is some positive news....

REPLY

s k sethuraman

In Reply to Vinay Pareek 1 year ago

i am a depsoitor in helios andi have got cheque bounced 2 lakhs i got a letter from high court registrar aksing me if i am objecting to extension of time to helios for repayment of deposits i replied i need my money and will not agree this was the meeting on july 15th

Vinay Pareek

1 year ago

Any updates on the High Court hearing which happened on 13 July 2015? with regards to H&M?
Any updates would be of great help. What is equally important is Investors like us who have been cheated by H&M and media like Moneylife should constantly follow-up on this update and keep us posted.

anitha

1 year ago

Please sign our petition as Helios & Matheson is not paying our full & final settlement salaries and also PF amount.


https://http://www.change.org/p/helios-matheson-managem...

REPLY

Praveen

In Reply to anitha 1 year ago

Hi Anitha,

when we are clicking on the link provided it is going to error page.
Hope you have started that petition , plz share that like so that we can vote

Thanks,
Praveen.

Ravi

In Reply to anitha 1 year ago

Send me the correct link

Rajesh Gupta

1 year ago

for fd concerns please make complaint on pgportal.gov.in/
under minstry of corporate affairs. u will get better results.

shamili

2 years ago

How dare you people can give useless cheque, really appreciated you guys guts and acting as smart in front of employees!!! who will be answering legal notice? Mahesh you are the responsible to answer to the employees. I also want Mr. Mahesh from finance arrested soon as he has caused lots of troubles to employees and because of him my family pushed to financial issues and I resigned my job from hell helios and struggled like anything to got new job, everything because the hell helios irresponsible and stupid management. I want my salary asap or else you people should answer to the court.

REPLY

hmemployee

In Reply to shamili 1 year ago

*

s k sethuraman

In Reply to shamili 2 years ago

Please move the Labour commission against the company management for all the frauds. The Labour commission will put everybody in. Just move the Labour court on your own directly thru a speed post

s k sethuraman

2 years ago

who is managing the company?
who will repay the creditors depositors?
who will be answering legal notices?
How long will the directors be in court custody.
What assets are available for settling depositors

lalit

2 years ago

Also has visited OMNITECH INFOTECH SOLUTIONS andheri diagonally opp pletico pharma...No one is willing to meet the investors,They have only one reply case is with the court...
Mr Gaurav company secretary and Ms Shruti legal dept are never available.even contact nos have changed..
i think its time the MCA/CLB should arrest the directors and put them behind bars like Mr S.Roy of Sahara India, only then we may seem some movements by the defaulting companies of some action.

ACCHE DIN AA GAYE INVESTORS KA HARD EARNED MONEY DUB GAYA..

lalit

2 years ago

Dear Investors,
Had visited pletico pharma. at there andheri office last week, but it seems the said company had shifted from there probably to indore lock, stock and barrel as informed by the security personal about 4 months back without intimidating/informing the investors...
Has any of this so called investors protection agencies such as CO.LAW BOARD, MINISTRY OF CORPORATE AFFAIRS aware of such move if so why no intimation was given to investors???
What action can we investors take now

lalit

2 years ago

Dear Investors,
Had visited pletico pharma. at there andheri office last week, but it seems the said company had shifted from there probably to indore lock, stock and barrel as informed by the security personal about 4 months back without intimidating/informing the investors...
Has any of this so called investors protection agencies such as CO.LAW BOARD, MINISTRY OF CORPORATE AFFAIRS aware of such move if so why no intimation was given to investors???
What action can we investors take now

Projects in Gandhi bastions in UP fall on bad times

Many projects in the Gandhi pocket borough now either face paucity of funds or have simply no takers in the bureaucracy

 

Having basked in envious glory for the past few decades, the Gandhi bastions of Rae Bareli and Amethi in Uttar Pradesh seem to have fallen on bad times after the ascendancy of the Bharatiya Janata Party (BJP)-led government at the centre.
 
With the union government red-flagging an ambitious mega food park project of Congress vice president and Amethi MP Rahul Gandhi, well informed official sources say, many other projects in the Gandhi pocket borough now either face paucity of funds or have simply no takers in the bureaucracy.
 
The Gandhi scion had laid the foundation stone of a major food processing unit in October 2013 in Jagdishpur that was to generate direct and indirect employment for more than 25,000 people, mostly locals and people from neighbouring areas. To be built for a whopping Rs200 crore, the project, a source told IANS, had "crash-landed before take-off".
 
To be built as the Shaktiman Food Park by the Aditya Birla group, it was to be given gas via the administered price mechanism route. While local legislator Radheshyam alleges "political vendetta", officials in the food processing ministry say the "decision to do away with the project was based on threadbare feasibility".
 
Officials point out that the requisite 50 acres land and the industrial use certificate were not given to the park and hence the inter-ministerial approval committee had decided to axe the project. The legislator, however, contested this, adding that the state government had given 72 acres of land for the project.
 
District Congress president Yogendra Mishra rued the development and said the park would have benefited the locals in a big way. An office-bearer of the State Industrial Development Association (SIDA), not wishing to be named, also viewed the development as a "setback for the region". As it is, more than 350 big and small factories have closed down over the past two decades.
 
The mega park is not a solitary case, it appears. Other large projects slated for Amethi and Rae Bareli during the previous UPA regime too seem headed for a similar fate.
 
A 200-bed central hospital in Tiloi hangs in the balance after the land allocated for it was disapproved by a central team, and there is also no word on a minority varsity and Sainik school in Kauhar, for which the district administration had assured 50 acres of land.
 
The district administration, at the bidding of the UPA government, had allotted 120.74 acres for a National Automative Training and R&D Infrastructure Project (NATRIP) in Trisundi but this project too has seen very little or no progress. The Rail Neer (bottled water plant) project had got under way in Tikariya more than a year back but there are now very few takers in the IRCTC, which will market the product, for this.
 
The delays and non-release of funds for various projects have prompted Congress president and Rae Bareli MP Sonia Gandhi to write to the union government for expediting the projects. Gandhi had recently written to union Health Minister J.P. Nadda for releasing funds for a proposed AIIMS-styled institute in her constituency.
 
State BJP spokesman Vijay Bahadur Pathak denied any "deliberate move" by the union government and said that this question should rather be put to Rahul Gandhi.
 
"He should explain why he hastily proceeded with these projects when they were not viable. As far as the BJP is concerned, we believe in 'sabka saath, sabka vikaas' (we are with every one for development," Pathak told IANS.
 
Sources point out that while there were no direct orders from the union government to scrap or shelve projects in the region, "bureaucrats know which side of the bread is buttered" and hence it was no wonder that in the next few years, the sun would set on most projects in what once was the epicenter of power!

User

Jaitley wants US to alter 'unjust' totalisation regime
Finance Minister Arun Jaitley has pushed for the US administration to begin a process by which the contributions by Indians to the country's exchequer by way of social security is returned and not retained in an "unjust" manner.
 
"This is like an aid program that Indian workers run for the US government," Jaitley said during his speech at the Centre for Strategic and International Studies, entitled "India's demographic transition: opportunities for partnership".
 
"Indians contribute-according to research done by Jacob Kirkegaard at the Peterson Institute --about $3 billion annually to the US government by way of social security contributions which they will never receive back," the finance minister said.
 
He, accordingly, wanted the US to alter what is formally called the totalisation regime. "I am confident that the US will take up this matter soon," he said, calling the present arrangement a "very unjust situation".
 
Indian workers, who are posted to foreign countries by their employers in India over short periods of time, continue to make social security contribution in India as per Indian law. At the same time, some countries like the US make them pay contributions under their laws as well.
 
Such contributions do not accrue to the workers till they have been made for a certain period.
 
Successive Indian governments have raised the issue with the US including Prime Minister Narendra Modi, when he met US President Barack Obama in January this year.
 
"We will also start discussions on the social security agreement that's so important for the hundreds and thousands of Indians professionals working in the US," Modi had said during his remarks at the joint press interaction with Obama.

User

COMMENTS

SuchindranathAiyerS

2 years ago

Post Independence, the British Government handed over enormous sums of money as compensation for Loss of Soldiers' Lives and Health during the Second World War. The Pakistan Army took the Pakistan sum and invested it, mainly in Britain and the US from which it derives an income of more than 1.5 Billion US Dollars independent of the Pakistan,Saudi Arabian and US Exchequers and revenues from its mercenary activities for various fellow Islamic and NATO governments. The Indian Republic established its tradition of "steal from the haves and have nots for the have lots" in keeping with Nehru-Gandhi-Ambedkarism and swallowed the money. In neither case were the bereaved families and those who suffered compensated. Part of the Indian Neta-Babu-Cop-Milard-Crony Kleptocracy paradigm. Starve and oppress the Indian serf to go abroad and work in hellish conditions while holding the slave's family hostage in India. Then mulct the slave's earnings to feed the greed and lust of the kleptocracy through corruption and profligacy. This sum will, if returned, go like all sums given to India. If the Kohinoor had been returned to India, it would be in small piece in a Bank vault in Italy or Switzerland as the Diamond Crown of melkote and the 12,000 Crores of Tirupathi Jewellery that were stolen during the last decade probably are.

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