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.
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 [email protected] 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:
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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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.
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
I have filed Criminal Case against 2 companies namely Neesa Leisure and Jindal Cotex.
Lets wait for the result
As you are aware we are a tiny publications without any resources. All things you had mentioned require funding and we doubt if people who had already lost money would be willing to spare some more money either for a class action suit or taking things further up as individual or together with other like minded investors. And it is these individuals that need to join hands and initiate action to get back their hard earned money. No one is stopping them from raising their grievances in alternate forums, filing class action suits or the PMO website you had mentioned. As a tiny organisation with no resources, we can do this much only.
Co. had got Company Law Board, Mumbai's order in 2013 to extend the FD's maturity date for 2 years without the knowledge and information to the FD holders(as per old companies act).
NOW these FD's are ready for repayment as per extended terms of 2 years.
Again co. has played dirty tricks/tactics and got the Company Law Board, Delhi's order to extend ALREADY extended FD's maturity date for another 18 Months. Said Order indicates that office had heard only co. advocate and NOT to the FD holders. Many FD holders had opposed co's application in writing to CLB Mumbai which were not considered/Mentioned by CLB Delhi in passing the order.
Why CLB Delhi has to intervene in to the jurisdiction of the CLB Mumbai? The reason shown was that officer at CLB Mumbai was on leave. Why so hurry? Why all objections of FD holders received by CLB Mumbai through emails and RPAD's are not sent to CLB Delhi as part of case documents? Is there any govt. machinery to inquire it to?
CLB Delhi passed this order per New companies act 2013 passed by current central govt.
Did you smell something cooking under the nose of the government in Delhi? Is this govt. and it's machinery if for Investor or for defaulter company?
It seems company can try with other CLB's of the Nation for extension of FD's in series and make F.D Investors to get back their hard earned money for YEARS.