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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 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.

Post Comment


Manharlal Patel

Manharlal Patel 47 minutes ago

So after seeing the situation from these companies i hereby requesting "Monelife" editor or the resposible personnel from Moneylife who can help us that if they can spread the name of these companies so that like us the money of the other who are interested to invest FD in these companies may benefited, otherwise their money also will be blocked like our.

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JGC 2 days ago

My self Senior Citizen of 70+ Yr, have to receive Matured FD Amount as under :

1) Bilcare Ltd (Pune) - Rs.50,000/- from OCT 2013. Applied to Hardship committee CLB Mumbai and waiting.
2) Ind Swift Ltd (Chandigarh) - Rs. 92,000 from NOV 2013. I have filed criminal case u/s 138 NIA which is pending.
3) Ind Swift Lab. Ltd (Chandigarh) - Rs.48,000/- from OCT 2014. I have filed criminal case u/s 138 NIA which is pending.
4) Ind Swift Lab. Ltd (Chandigarh) - Rs.58,000/- will be DUE in JAN 2016.

Seems above companies are taking advantage of CLB and other GOVT. agencies for not making Due payment of Rs. 469 crores as per agreed FD terms and conditions.

Bilcare was to pay aprox. Rs. 168 Crores,Indswift was to pay aprox. Rs. 95 Crores & Indswift Lab was to pay aprox. Rs. 206 Crores to FD investors as per CLB.

GOVT claims their business is Non corrupt, transparent and investor / citizen friendly.

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Manharlal Patel

Manharlal Patel 3 days ago

i hereby request all of you that please take extreme care as i am not getting matured amount of FD from following companies
Helios & Matheson limited;
Birla Cotsyn limited;
Tricom limited;
Birla Power solutions limited;
Jaypee infratech limited; Jaiprakash Associates limited; Bilcare limited;
Unitech limited;
Ind Swift limited;
Ind Swift Laboratories limited

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Manharlal Patel

Manharlal Patel 1 week ago

i am 100% agree with Saluja comment that like Bajaj capital, Karvy Stock Broking has did the same they have collected money from depositors and now if we are writing them that we are not getting our money then they have no courtesy that atleast they should reply our mail but nobody care. so what to do in this that we are not understanding

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u k saluja

u k saluja 1 week ago

Looking at the cases where no solutions have been found wherein the companies had raised funds by employing market widzards like Bajaj Capital Ltd. and others and collected huge sums as fixed deposits and earned commissions for themselves and thereafter companies refusing to pay back money when due despite orders issued by CLB/MCA I strongly feel that the negotiable instruments ACT should be amended and FDs issued by companies and banks should be considered as Negotiable Instruments and should be encashable when due and in case of failure to pay back should be considered an offence under the ACT. Moneylife should form a NGO to help sufferers and should not keep on advertising article for Birla company where the money was refunded to a FD holder whereas lakhs are suffering where the money has not paid back. Look at cases of Micro Technologies India Ltd., Avon Corpn.Ltd. and Unitech Ltd., who have found ways and means to dodge their small investors by either going in for winding up or seeking permissions from CLB for restructuring payment of interest and principal amount by delaying refunds by many years. This is mockery of justice and playing with other's money without their consent. Pl put on your thinking caps and suggest and find solutions to help people by forming a NGO to help. I am sure you can do this since you hold the sword of writing in your hands and have the requisite powers. Thanks.

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