Elder Pharma: Bombay HC appoints provisional liquidator to settle claims of complainants
Moneylife Digital Team 13 April 2017
The Bombay High Court has appointed the Official Liquidator attached to the Court as Provisional Liquidator of Elder Pharmaceuticals Ltd. 
 
A copy of the letter has been sent to Moneylife Foundation by the Office of the Official Liquidator of High Court, Bombay, since Elder Pharma is one of the many companies that was highlighted by the Foundation in a Memorandum last year to the Ministry of Corporate Affairs (MCA). The MCA had forwarded the Memorandum as complaint to the Official Liquidator's Office.
 
The letter says, "...the Official Liquidator has informed to the complainants that they may file their claim in prescribed form no.66 endorsing copy to them and also informed that their claims will be adjudicated and settled in terms of provisions of section 529, 529(A) and 530 of the Companies Act, subject to the availability of funds in the credit of the Company (in provisional liquidation)".
 
Last year on 19th September, the Bombay HC, while hearing the case filed by Puspasen C Jhaveri, Premier Ferro Alloys & Securities Ltd and Neelam Securities Pvt Ltd, had asked to appoint a provisional liquidator for Elder Pharma.  
 
The Moneylife Foundation's compilation showed that H&M accounts for the largest number of complaints. Besides H&M, companies, which have a large number of complaints are: Elder Pharmaceuticals, Jaypee Group, Unitech, Plethico Pharmaceuticals and Bilcare Ltd. The other companies were: Neesa Leisure, Phadnis Infrastructure, Micro Technologies, Jaypee Infratech, Yash Birla group of companies and Omnitech Infosolutions.
 
 
The survey found that a majority of the aggrieved depositors choose to complain to the company itself, which is pointless. The Company Law Board (CLB), MCA, economic offences wing (EOW) and the Securities & Exchange Board of India (SEBI) are the regulatory agencies with whom they should seek to get their grievance redressed. 
 
In April 2016, the Company Law Board (CLB) had dismissed an application filed by Elder Pharmaceuticals seeking extension of time for repaying the dues to its FD holders. During the same month, the Bombay High Court had granted time till August to Elder Pharma to generate funds for clearing dues of investors. The HC had also warned the Company about appointing a liquidator in case Elder Pharma fails to meet the deadline.
 
While the pharma company makes its corporate fixed deposits (FDs) holders run from pillar to post, in July 2016, the Central Bureau of Investigation (CBI) alleged in a first information report (FIR) that Elder Pharma bribed BK Bansal, the Director General in MCA to prevent a Serious Fraud Investigation on the Company. 
 
What does this mean for the fixed deposit holders for Elder Pharma? Unfortunately, the news is not very encouraging for them. After the liquidation proceedings, the secured creditors of the company and the tax department will have first right to whatever is recovered and the depositors claim would come only later. This is one reason why Moneylife discourages savers from investing in corporate fixed deposits, barring a handful of exceptions.
Comments
ugezjpyxnjgpqu
11 months ago
I approached nearly 5 to 6 Government regulators for the refund of FD. No use.No correct information is forthcoming. Only we read information of 2016. MCA SHOULD TAKE THE PROBLEM SERIOUSLY AND RENDER JUSTICE TO THE POOR DEPOSITIRS.
DheerajR
Replied to ugezjpyxnjgpqu comment 11 months ago
Ok
Anybody else got refund?
If so, what steps are needed
mehuldadia
1 year ago
Any update on liquidation process and when can FD holders receive back their money?
rdmeht
2 years ago
Pl alert me when some development takes place.
DheerajR
Replied to rdmeht comment 2 years ago
I have not received any money nor any communication. Has anybody else got any?
rdmeht
2 years ago
I had already given my claim in the liquidator's office about 3 years back. Should I again give it? What is the last date for that?
punater1961
2 years ago
WHEN WE WILL GET OUR FD MATURITY PAYMENT
rdmeht
3 years ago
When is the liquidation process likely to be completed and what do you think is going to be the payout ratio for fixed deposit holders?
rakesh2616
4 years ago
any further news on Elder Pharma FD refund, will we were receive the fd amount
lcrossroad
Replied to rakesh2616 comment 4 years ago
Had submitted application in eow unit 7 in feb 20
sanketj420
Replied to rakesh2616 comment 4 years ago
Yes need to submit affidavit to liquidator Mr Katkar Mumbai high court for office
kamalpoplai
Replied to sanketj420 comment 4 years ago
Pl advise the affidavit matter and the amount of stamp paper required. I am unable to download form 66 if it is required. Thanks
DheerajR
Replied to sanketj420 comment 4 years ago
Please give contact details of the liquidator. What needs to be included in the affidavit? Thanks
kamalpoplai
Replied to DheerajR comment 4 years ago
Dheeraj ji can you please tell where to send the affidavit and has to be written. Thanks
DheerajR
Replied to kamalpoplai comment 4 years ago
[email protected]

Thanks Kamal ji
DheerajR
Replied to rakesh2616 comment 4 years ago
Doesn't have any update. Anybody has any update or further process to get the FD refund ?
dheerajrokade
4 years ago
Any body has any idea what is going on with Elder pharma fixed deposit ? Has anybody received the maturity proceeds ? If so please advise

I got poor first with Elder, then with PMC, then got stuck with Yes bank and now a big jolt with Franklin. Sky is falling

In India, depositors are doomed
lalit
4 years ago
Any update on ankur drugs & pharma Ltd fd refund
sanketj420
Replied to lalit comment 4 years ago
14% of principal is returning. Need to submit form to EOW Mumbai. I have received amount 2 weeks after applying
mehuldadia
Replied to sanketj420 comment 4 years ago
This is for which company ?
lcrossroad
Replied to sanketj420 comment 4 years ago
Yes for Ankur drugs recd the same
lalit
4 years ago
Any update on Elder Pharma, Pletico Pharma ,Helios and Matheson Fixed deposits refund
Dheeraj R
Replied to lalit comment 4 years ago
Are there any depositors who have got the refund? If so, please advise. Also if somebody is aware of current situation with respect to Elder Pharma FD
B Ravi
5 years ago
All these government bodies are hardly useful for us.They are good in making new rules or ammending rules but not willing to change the rules where investors woud get their own money timely. Rule like 1961 act for withdrawal of Rs 1 loc to Rs 5 lac in RBI regulated bank.
B Ravi
5 years ago
Provide us the liquidators contact and office address to know the status of or money
B Ravi
5 years ago
We have submitted form 66 on stamp paper through Bajaj Capital but money has not yet received. How long we have to wait for they.
Dheeraj R
Replied to B Ravi comment 5 years ago
Hello, How long are you waiting after submitting form 66 through Bajaj capital ?
Amol Parulekar
5 years ago
Mr Murali you have any contect number my No.is 9321494157
Murali Venkatesan
5 years ago
Can we know the contact details of the liquidator?
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