Elder Pharma: Bombay HC appoints provisional liquidator to settle claims of complainants
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.
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    COMMENTS

    rakesh2616

    2 months ago

    any further news on Elder Pharma FD refund, will we were receive the fd amount

    REPLY

    lcrossroad

    In Reply to rakesh2616 2 months ago

    Had submitted application in eow unit 7 in feb 20

    sanketj420

    In Reply to rakesh2616 2 months ago

    Yes need to submit affidavit to liquidator Mr Katkar Mumbai high court for office

    kamalpoplai

    In Reply to sanketj420 2 months 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

    In Reply to sanketj420 2 months ago

    Please give contact details of the liquidator. What needs to be included in the affidavit? Thanks

    kamalpoplai

    In Reply to DheerajR 2 months ago

    Dheeraj ji can you please tell where to send the affidavit and has to be written. Thanks

    DheerajR

    In Reply to kamalpoplai 2 months ago

    [email protected]

    Thanks Kamal ji

    DheerajR

    In Reply to rakesh2616 2 months ago

    Doesn't have any update. Anybody has any update or further process to get the FD refund ?

    dheerajrokade

    9 months 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

    12 months ago

    Any update on ankur drugs & pharma Ltd fd refund

    REPLY

    sanketj420

    In Reply to lalit 2 months ago

    14% of principal is returning. Need to submit form to EOW Mumbai. I have received amount 2 weeks after applying

    mehuldadia

    In Reply to sanketj420 2 months ago

    This is for which company ?

    lcrossroad

    In Reply to sanketj420 2 months ago

    Yes for Ankur drugs recd the same

    lalit

    12 months ago

    Any update on Elder Pharma, Pletico Pharma ,Helios and Matheson Fixed deposits refund

    REPLY

    Dheeraj R

    In Reply to lalit 12 months 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

    1 year 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

    1 year ago

    Provide us the liquidators contact and office address to know the status of or money

    B Ravi

    1 year 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.

    REPLY

    Dheeraj R

    In Reply to B Ravi 1 year ago

    Hello, How long are you waiting after submitting form 66 through Bajaj capital ?

    Amol Parulekar

    1 year ago

    Mr Murali you have any contect number my No.is 9321494157

    Murali Venkatesan

    1 year ago

    Can we know the contact details of the liquidator?

    SATISH KUMAR

    1 year ago

    Please let me know if any latest action on payment of FD amount of Elder Pharma. I have 5 Lakhs deposit amount with Elder Pharma. Not received any amount back.

    mehul dadia

    1 year ago

    Call liquidators.. they are supposed to answer ..case is with them

    REPLY

    Murali Venkatesan

    In Reply to mehul dadia 1 year ago

    May we know the contact details of the liquidator ?

    mehul dadia

    In Reply to Murali Venkatesan 1 year ago

    You can find details on Official Liquidator site. One can also visit their office in mumbai.
    http://www.officialliquidatormumbai.com/Notices.aspx?id=1

    Dheeraj R

    In Reply to mehul dadia 1 year ago

    please can you advise who and their email address, thanks in advance

    Dheeraj R

    2 years ago

    What is the latest on retrieving money of Elder pharma FDs ? Anybody has any idea please. Thanks in advance

    Kamal P

    2 years ago

    Investing in an Indian co as FD was the greatest mistake we forgot that this is India and the govt here is least bothered about the middle and lower class who loose fortune like this
    Only giving speeches and making fool of public is there policy and they want to compare this country with developed countries. God help this system

    REPLY

    Dheeraj R

    In Reply to Kamal P 2 years ago

    True

    B Ravi

    2 years ago

    if government can not do any thing in this situation how can any one invest in government scheme too. people lost their respect in FDs of companies and banks

    Kiran Madaye

    2 years ago

    We have been dealing in their products for the last umpteen years and recently sent our claims of unsetteled claims , credit notes,bank gaurantee revocation claims by customers on us due to non supply on Elders part, to the government appointed liquidator and are yet to recieve any feedback on the status .
    But would like to take this oppurtunity here so that some one can guide on the legality
    That Elder Pharmaceuticals is still very much functional with a few products being manufactured in 2016/2017 and enough shelflife till 2019 which are available in the market .Also unsubstantiated news that many of their licencess of manufacturer are being changed to Elder Projects and new products are being now marketed thru this name .The directors remain the same in both the places.

    Is the government and the their checks so dumb that they allowed the company to cell many of their flagship brands to Torrent Pharmaceuticals without consideration of the liabilities of Elder, money exchanged hands and ownership without due consideration of investors,and liabilities of Elder.
    We are also being updated that Elder Pharmaceuticals has not paid the VAT collected from its trade partners and the liabilities are now being recovered from this unsuspecting
    entities even though they have made the payments to Elder and taken Setoff.This pertains to years well before the official closure .

    I am really eager to partner with likeminded people who wish to recover their hard earned money from such fraudsters by taking the legal course also would like to approach the case with a new way like going thru the various sales deed of the company where they sold various assets and check wether the buyers can be made party to ensure that some respectable recovery is made to ensure justice to scores of small un-unified investors or depositers or people like me.
    Please do get in touch

    REPLY

    Sriram Ranganathan

    In Reply to Kiran Madaye 2 years ago

    Elder Pharma Saxenas have deployed all tricks in the trade to fraudulently deceive investors and others who lent them monies. They even destroyed a family of an MCA official by bribing him and thereafter standing exposed. It is not so easy dealing with folks with such a criminal mindset and having deep pockets. They must be having strong political backing for sure to be in the game. I would therefore not advise anyone to waste their good money in dealing with such folks since the lawyers will make you bankrupt in this process. The rest is your call or with the group that wants to fight these folks. Though I have lost considerable deposit monies due to the frauds committed by this company/group, I would not subscribe to any legal action since that would remain fruitless for sure.

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