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Moneylife » Investing » Fixed Income » How to get your money back from Yash Birla group companies

How to get your money back from Yash Birla group companies

Moneylife Digital Team | 24/09/2013 03:09 PM | 

Damyanti Vithalani, a Moneylife reader got her money back from Yash Birla group companies by filing a complaint to MCA portal. Those who invested in the corporate FDs of Zenith Birla (India) and Birla Power Solutions can follow her tactic to get their money back  

Moneylife has received several complaints from agitated readers and senior citizens who have not been able tot get their fixed deposit (FD) maturity amounts from Yash Birla Group companies – Zenith Birla (India) Ltd and Birla Power Solutions. Damyanti Vithalani, who fought for her refund says that a complaint to the Ministry of Company Affairs (MCA) website reached the right ears. Here is what you need to do to get your money back from the Yash Birla group companies.

  1. 1. First, you should file a complaint with the Investor Grievance Cell of the company. Many investors have not got a response to this. It does not matter, follow this step and then escalate the issue if you do not get a response. You can do this by filing an online complaint to MCA.
  2. On MCA website click on the right side menu under ‘Important Links’ click on ‘Lodge Investor Complaints’. It will provide you Investor Complaint Form. Fill in all the necessary information and submit your complaint online.
  3. While filling online complaint form on MCA website you need to enter Corporate identity number (CIN) of company. Zenith Birla India's CIN is L29220MH1960PLC011773 and Birla Power Solutions' CIN is L31101MH1984PLC032773.
  4. You can also file a case against company with the Company Law Board (CLB) under section 58A (9) of Companies Act, 1956 or under section 45QA of the RBI Act, 1934.
  5. You need to fill form no. 4 of Company Law Board Regulations and submit it with a demand draft of Rs50 to nearest CLB Bench.

Ms Vithlani managed to get her money back after filing complaints with the MCA as well as the CLB. She had invested in corporate FD of Zenith Birla India Ltd. On maturity, the company received her FD claim but they did not give any timeline for refunding the money. Later on, she filed complaint on MCA website and wrote emails to the legal team of Yash Birla group as well as the company’s board members, PVR Murthy and Vimal Dubey. She sent a copy of every email to MCA at roc.mumbai@mca.gov.in and Ministry of Commerce (MoC). She also filed her complaint with the CLB. After following this process for a month, she received Rs6 lakh from Zenith Birla India.
 

Between March and June 2013, the CLB had received as many as 130 complaints against other Yash Birla group company, Birla Power Solutions.  Applicants have filed complaints under section 58A(9) of the Companies Act, 1956 as the company has failed to repay their deposits-FDs as per the terms and conditions of acceptance of deposits.
 

On 30 August 2013, in view of the genuine claim of the applicants and also in exercise of powers conferred under section 58A (9) of the Companies Act, 1956, CLB Member Vimla Yadav directed Birla Power, as under:

  1. The company shall make the repayment of the Fixed Deposits with up-to date interest by Demand Draft by 05 October 2013 which shall be sent by Registered Post to the said applicant depositors.
  2. The company shall examine the Pre-mature cases of the depositors in the context of hardship cases and arrange to pay those who require the funds immediately.
  3. The company shall file an affidavit of compliance with the CLB by 10 October 2013 to the effect that it has repaid the deposits to the 130 depositors. A copy of the Affidavit to be sent to the Registrar of Companies, Mumbai Maharashtra as well.
  4. Any failure to comply with this order on the part of the R-I Company shall attract the penal provisions contained in sub-section 10 of section 58A of the Companies Act, 1956.
  5. The Bench Officer shall forward a copy of this order to the Registrar of Companies, Maharashtra also.
  6. In the event of non compliance of this order, the Registrar of Companies, Mumbai Maharashtra, 100, Everest Building, Marine Drive, Mumbai-2 shall initiate prosecution proceedings against the company and its every officer including the Mg. Director of the company before 30 November 2013.

As of March 2012, Yash Birla group companies owe Rs97.25 crore to small investors invested as fixed deposit. Birla Power Solutions owes the highest, Rs57.92 crore while Zenith Birla (India) owes Rs33.19 crore to FD holders. Birla Cotsyn (India) and Shloka Infotech have collected FDs worth Rs5.67 crore and Rs52.84 lakh from investors as of March 2012. Yash Birla group companies have not yet published reports for end-March 2013.
 

Are Yash Birla Group companies in deep trouble? Yash Birla Group of companies has been struggling with many issues like liquidity crunch, non-payment of loans, negative cash flows etc. Most of its companies are giving negative returns to the investors and its share prices are not even in double digits.
 

Corporate FD’s are unsecured in nature but many investors including senior citizens like Damyanti Vithalani  invested lakhs of rupees due to the goodwill of the Prestigious Birla Group. However, Yash Birla is more known for its lavish lifestyle on Page3 parties instead of his business moves, which shows the careless attitude of the group. The promoter’s stake in Birla Power Solutions is only 1.08%. It shows that the promoter himself lost faith in his company. For FY2013, Zenith Birla India reported a net loss of Rs44.62 crore while, during the June 2013 quarter it widened to Rs19.52 crore.


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129 Comments
u k saluja

u k saluja 2 weeks ago

Your article on how to get your money from Birla Group companies has been appearing for a very long time. Now please write an article for benefit of your readers how to get money from liquidated companies like Micro Technologies India Ltd. and Avon Corporation Ltd., Mumbai which have duped hundreds of their matured fd holders of their hard-earned money and despite promises had not paid money on maturity of their fds. Kindly help. Thanks.

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MR  V RAMANI

MR V RAMANI 1 week ago in reply to u k saluja

Agree with u Saluja, also if ML can guide us how to lodge complaints with mca and others, since we are not able to register online.

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natabar306

natabar306 2 weeks ago

Dear Sir,
After filling the eForm for lodge-grievance, it gives Your Session has Expired.
I have tried 10times by now on daily basis. How to submit a complain if not through internet?
Is there any way I can directly send registered post with print out of this eForm.

Thanks,
Natabar

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natabar306

natabar306 2 weeks ago

Dear Sir,
After filling the eForm for lodge-grievance, it gives Your Session has Expired when submited.
I have tried 10 times by now on daily basis. How to submit a complain if not through internet?
Is there any way I can directly send registered post with print out of this eForm.

Thanks,
Natabar

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MR  V RAMANI

MR V RAMANI 1 month ago

Moneylife, (as many of the sr.citizen members like me who have posted/aired their helplessness and disappointments faced at the failed attemtps in recovering their hard earned moneys on FDS with Cos.) would do a greater service if a special desk is set up to handle these fraudsters, on chargeable basis. Rates could be fixedup on value at stake basis also. Pl discuss/give a serious thought to this issue and let us know. Keenly await your positive response. Thanks n Regards. Ramani - 68 years.

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u k saluja

u k saluja 1 month ago in reply to MR V RAMANI

It is an excellent suggestion by Shri V.Ramani. Moneylife has been instrumental in providing a plateform to people suffering at the hands of management of companies who have been duping senior citizens and others by inviting fixed deposits and thereafter either delaying redemption of funds when due or refusing to pay despite numerous telephone calls/personal follow up/petitions to CLB/MCA who are not at all helpful because of procedural angles and delaying tactics adopted both by the companies'managements and the concerned officials. The other route for non-payment is go for litigation or liquidation of sinking companies and thus leaving poor middle class small investors in lurch. Kindly see cases of Micro Technologies India Ltd. and AVON Corporation Ltd., Mumbai where Bajaj Capital Limited were promoting fds for them even when people from Mumbai were filing petitions to CLB for refund of their matured FDS and orders had been issued by CLB but no complied with by settlement of claims and thereafter the companies had gone into liquidation on account of orders issued by the Hon'ble High Court of Mumbai Judicature. Now no feedback being given either by Companies or office of liquidator/CLB Mumbai where now more than 1100 such cases are pending consideration as on date. Kindly see website of CLB, Mumbai (Pending cases list) for perusal. Thanks. U.K.Saluja, New Delhi.

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Manharlal Patel

Manharlal Patel 2 months ago

Dear Sir,

It is very sad that after one year also i am not getting my principal amount of fixed deposit, the details are as below.

1)Company Name: Unitech Limited
2) Name of FD holder: MAYABEN MANHARLAL PATEL
3) FD Amount: Rs. 50000=00
4) FD receipt no.: 1011963
5)Period of FD: 3 years
6)Type: cumulative
7)Matured amount: Rs. 71540=00
8)Initial Date: 12.01.2011
9)Date of maturity: 12.01.2014
10) My mail id: manharlalpatel1@gmail.com

With kind regards

Mayaben Patel

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JGC

JGC 2 months ago in reply to Manharlal Patel

Manharlal / Mayaben Patel,
This is merely a blog and gives information to people.
For getting your money back you need to take up the matter with respective company and in case of no reply you can approach to the Ministry of Corporate Affairs (MCA),Company Law Board (CLB), Prime Minister Office (PMO). Their email and postal address is available in other post/comments below OR from their websites.

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