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A senior citizen and investor is running from pillar to post to receive a deposit receipt from a company, which is busy ‘thanking’ investors through massive advertising
‘THANK YOU DEPOSITORS’ proclaims a recent, huge advertisement brought out by Jaiprakash Associates Ltd, a Jaypee group company. But the same ad does not mention whether it has issued receipts for depositors.
One such investor, Vidyadhar Radhakrishna Lad, a senior citizen and shareholder of the company, had subscribed for the fixed deposit scheme of Jaiprakash Associates by investing Rs1 lakh. Despite writing to the company and running from pillar to post for two months, Mr Lad has still not received his fixed deposit receipt (FDR).
Mr Lad invested in the fixed deposit scheme of Jaiprakash Associates on 6 October 2009 through a sub-broker, who then submitted the same to the company’s authorised broker RR Investors Capital Services Pvt Ltd. Mr Lad made the payment of Rs1 lakh via cheque number 223232 drawn on HDFC Bank, Ahura Centre branch, Andheri (E), Mumbai 400 093. The broker, RR Investors, has also not responded to Mr Lad’s two emails on this subject.
Mr Lad in his mail to Manoj Gaur, executive chairman, Jaiprakash Associates, wrote, “It would have been better had you added one simple statement ‘FDRs BEING DESPATCHED’ in your advertisement. This would have not only made deposit-holders happy, but (it would have) also impressed the common public who have nothing to do with the company (at present) and who may invest their hard-earned money sometime in (the) future whenever the company needs funds.”
However, the company, in a response to a Moneylife email, said that it received the payment from Mr Lad on 10th October and issued an FDR (number 166884) on the same date. As per the terms and conditions of the scheme, Jaiprakash Associates said it had dispatched the FDR on 7th December through registered post.
Surprisingly, the company said it has not received any mail from neither Mr Lad nor Moneylife on its e-mail id ‘email@example.com’. The question is, why did the company give the same email ID to investors for correspondence?
Several senior citizens like Mr Lad survive on the interest income that they earn from fixed deposits. Companies like Jaiprakash Associates should keep this in mind and at least make sure that they communicate properly with their investors.
Separately, when we tried to reach the company’s website www.jilindia.com through Google, we were warned that this site may harm our computer!
The draft direct tax code, on which the government has invited comments from the public, has argued for bringing the entire range of savings schemes under the EET mode of taxation
Trade unions have asked the Indian government to shelve the proposal in the draft Direct Tax Code (DTC) to tax all savings and provident fund (PF) schemes at the time of withdrawal, saying that the move would hit the salaried class hard, reports PTI.
"This effort of bringing PF withdrawals under income-tax purview shall adversely hit the salaried class as their social security will be seriously hampered. This is just not acceptable," said the Hind Mazdoor Sabha (HMS), in a letter to finance minister Pranab Mukherjee.
Cautioning the government that implementation of the proposal could create a 'serious situation', the HMS appealed to the finance minister “not to open a confrontational front.”
The secretary of the All India Trade Union Congress, DL Sachdev, also raised concerns about the proposal and said that the Union would take up the issue with the government.
The draft DTC, on which the government has invited comments from the public, has argued for bringing all savings schemes under the exempt, exempt, tax (EET) mode of taxation.
At present, no income-tax is levied either at the time of contribution, accrual of interest, or withdrawal of provident funds by subscribers.
The EET mode would cover retirement funds, including General Provident Fund (GPF), Public Provident Fund (PPF), Recognised Provident Fund (RPF) and Employees' Provident Fund (EPF).
"During a meeting of the working committee of the HMS on 31st October, a resolution was passed to oppose the government's move to bring PF under income-tax purview,” said AD Nagpal, secretary, Hind Mazdoor Sabha, in a statement to PTI.
"We oppose this proposal as this would hit the salaried class of the society badly. Subscriptions to PF schemes are mandatory and not voluntary. Thus the government should not charge income-tax on withdrawals of PFs before or after superannuation," he said.
Mr Sachdev, who is also an Employees’ Provident Fund Organisation's (EPFO) trustee, said, "We will raise this issue in the next meeting of EPFO's apex body, Central Board of Trustees, which is headed by the labour minister."
"We will spare no efforts to get this resolution passed in the CBT that trustees don't favour charging of income-tax on PF withdrawals,” Mr Sachdev said, adding that a letter opposing the proposal would be sent to the labour minister as well as the finance minister.
The issue, Mr Sachdev said, is likely to rock pre-budget consultations of the finance minister with the unions.
All central trade unions would stage a dharna in front of Parliament House on 16th December, he added.