Micro Technologies to be wound up to repay depositors

Unable to pay its debts, the High Court had ordered that Micro Technologies deserves to be wound up and money refunded to depositors. However, small depositors are still finding it difficult to get their hard-earned money

 

The Bombay High Court has directed to wind up Micro Technologies Ltd to repay money to its depositors and lenders. However, despite filing affidavits to the liquidator’s office in Mumbai, several small depositors are yet to get a single penny back from the company or the liquidator. There is also no reply from officials of the Ministry of Corporate Affairs when small investors file multiple complaints asking their money. This has left small investors, who were lured with a higher yield for investing in Micro Technologies’ fixed deposit (FD) scheme, in the lurch.

 

Many companies, such as Micro Technologies, those belonging to the Yash Birla group – Zenith Birla (India) Ltd and Birla Power Solutions, Plethico Pharma and Ind Swift delayed the payment of interest and principal on their fixed deposits (FDs). Moneylife has written about Yash Birla group companies extensively. We received several complaints from depositors of Micro Technologies and decided to investigate.

 

Investors should have smelt something fishy when Micro Technologies started offering deposits with an interest yield of up to 14.89% in 2012. According to the company’s Annual Report 2013, the company took deposits worth Rs54 crore from investors as on 30 September 2013.

 

Micro Technologies, established itself in the software solutions space, providing security products, support systems and web-based software to its clients. The company website mentions that it won contracts for ‘Aadhaar’ and ‘City Surveillance’ projects. Further, it states that it provides security solutions to Navaratna public sector units (PSUs) as well as public sector banks.

 

The company, which sought capital from various sources, defaulted on almost all payments to not only small retail investors, but big lenders as well. After several complaints to Micro Technologies, 144 depositors filed complaints to the Company Law Board (CLB). The Bank of New York Mellon and Canara Bank also filed petitions in the High Court. After the hearings, it was ordered that Bombay High Court to be appointed as the Official Liquidator to take charge of the assets, properties and records of Micro Technologies and repay the lenders.

 

The big question is—what has Micro Technologies done with the huge deposits? On 20 July 2007, Micro Technologies made an offer to US-based banking company—The Bank of New York Mellon’s London Branch of $15 million 0.5% unsecured foreign currency convertible bonds (FCCBs) due 2012. As on October 2014, bonds with a principal amount in the aggregate sum of $12 million (Rs74.19 crore) are outstanding.

 

Similarly, in February 2012, commercial paper with a tenure of 178 days was issued to Canara Bank with a maturity value of Rs15 crore. The discounted value was around Rs14.11 crore at a rate of 13% per annum. The credit rating of the commercial papers was A1, granted by CARE Ltd. Micro Technologies filed to pay back Canara Bank. Canara Bank approached the court and on 12 June 2014, the Bombay High Court ordered that Micro Technologies should pay a sum of Rs15.91 crore and appointed a Provisional Liquidator. The equity shares of Micro Technologies were suspended for trading from 17 June 2014 based on the above court order.

 

However, pursuant to the order dated 12 June, 2014, and a notice under Rule 28 of Companies (Court) Rules, 1959 being served on Micro Technologies, it did not come forward to defend the Company Petition. On 8 October 2014, the Bombay High Court (Company Petition 190 of 2013) ruled that Micro Technologies is commercially insolvent, is unable to pay its debts and deserves to be wound up.

 

In reply to grievances received, the CLB mentions in its order that, “Deposit holders can approach the Official Liquidator, High Court of Bombay at 5th Floor, Bank of India Building, Mahatma Gandhi Road, Fort, Mumbai- 400 023 in respect of the recovery of their fixed-deposit amount and the accrued interest thereon if any payable to them, in accordance with law”.

 

NOTE:

Survey on Company Fixed Deposit (FD) Defaults

Based on scores of requests from senior citizens and others, Moneylife Foundation intends to take up the issue of non-payment of fixed deposits by companies with the Ministry of Corporate Affairs.
 
If you have invested in a company fixed deposit which has defaulted on interest or repayment, please complete this survey. Please share this survey with those who are facing similar issues.
 
Help us fight for better policies by taking this survey here Based on scores of requests from senior citizens and others, Moneylife Foundation intends to take up the issue of non-payment of fixed deposits by companies with the Ministry of Corporate Affairs.
 
If you have invested in a company fixed deposit which has defaulted on interest or repayment, please complete this survey. Please share this survey with those who are facing similar issues.
 
Help us fight for better policies by taking this survey. Here is the link
https://www.surveymonkey.com/r/Corporate_FDs

  • Like this story? Get our top stories by email.

    User

    COMMENTS

    PAS Rao

    9 months ago

    please file a criminal complaint in Bangalore. It is maintainable. Earlier I suggested to Bombay depositors. I do not know whether somebody has filed and pursuing. I have filed in Hyderabad. The Directors are avoiding NBWs and summons. They know of the case I have filed but no respect for law.

    Giridhar H G

    9 months ago

    Is there any way to approach the Official liquidator of High court of Bombay from Bangalore, I have invested in Micro Technologies and do not how to approach them. Can anyone share the contact number of Official liquidator. It is almost 7 years the company got wound up and Official liquidator was appointed to refund the depositors money what are they doing ? Money Life please take our case and publish on print and digital media.

    Deepa A

    1 year ago

    Is there any way of getting refunds of FDs from companies as UNITECH, MICRO TECHNOLOGIES, JAGATJIT INDUSTRIES LTD., IND SWIFT, BILCARE, PLETHICO,ANSAL HOUSING & CONSTRUCTION, JAIPRAKASH ASSOCIATES. Please advise.

    Jagmeet

    2 years ago

    I have few FDs stuck with this Group. Just wonder, if there is a collective Whats App Group/ anything similar for the investors to raise a collective voice?

    sulay pandya

    2 years ago

    Wait n watch for better result n good news...no option they leave....no trust even good comlonies bcoz of such bad compony ..

    N.Hanumanta Rao

    2 years ago

    All the authorities and EOW and police must jump into action and arrest the Chairman,MD, and other Directors and attach all their assets both moveable and immoveable and put them for E-auctioned and whatever amount is realised to be distributed to all FD holders.

    Phani Bhushan Athlur

    2 years ago

    Has anyone got their money back, yet?

    R Sankara Narayanan

    2 years ago

    It is extremely disappointing to note, no update on the fate of refund of Fixed Deposit to the small investors. What should we all do now to speed up the process of settlement ? Official receiver was appointed three years back , but , no news yet on the progress??

    N.Hanumanta Rao

    2 years ago

    The Government which claims as "people's government" should take up the case where senior citizens have invested in FD of their hard earned money for their survival in rainy days. I do not know whether I will get the money back during my life time. I am aged 67 years.

    N.Hanumanta Rao

    2 years ago

    Thanks to Money Life. I bam 67 years and retired from a private company. I have serious health problems like Diabetes,B.P etc. I have no source of income. All my retirement funds were invested in Elder Pharma, Mumbai,, Plethico Pharma,Indore. I am in deep financial crisis and unable to even pay my medical bills. The worst part is even my family including my wife have deserted me. I am in a desolate and destitute condition. I am on the Street with a begging bowl in my old age. Please help. Please take up our pathetic condition to the notice of PM, FM,MCA, SEBI,RBI etc.

    k.mohanarangam k.mohanarangam

    3 years ago

    thank you Moneny life for
    the update

    Valliappan Ramanathan

    3 years ago

    I AM ALSO ONE AMONG THE DEPOSITORS. I HAVE ALSO DEPOSITED A SUM OF RS.25000/- FOR A PERIOD OF ONE YEAR FROM 16.08.2012. AFTER A PROLONGED FIGHT ALSO THE DEPOSITORS WILL NOT GET EVEN A SINGLE PAISE FROM THE COMPANY. I HAVE ALSOREADY FILED A COMPANY WITH REGISTRAR OF CO MPANIES, MUMBAI. WE WILL FIGHT FOR GETTING THE REPAYMENT.

    Pandurang Parab

    3 years ago

    Pl. keep on updating the latest news of FDs of micros .Mr.P.D.UTEKAR advocate is looking this issue for Bajaj capital . can you get some information from him.
    thanks
    parab

    k.mohanarangam k.mohanarangam

    3 years ago

    as a last resort i can only rely on moneylife for any positive result
    and hope moneylife will continue its crusade.

    ss makhni

    3 years ago

    it is taking a long time to get some relief, that makes all the efforts a waste

    8 Things to watch out for on Black Friday

    The deal regarding the bargains on what is known as the first day of the holiday shopping season

     

    Here are the eight things to watch out for on the Black Friday, or the first day of the holiday shopping season…

     

    Courtesy: TruthInAdvertising.org

  • Like this story? Get our top stories by email.

    User

    COMMENTS

    k.mohanarangam k.mohanarangam

    3 years ago

    thank you for posting latest information on microtech

    Govt hikes excise on petrol, diesel by Rs1.50 per litre
    The increase in price due to hike in excise duty will be passed onto the consumers so that the government can keep it coffers healthy
     
    The Indian government on Thursday hiked excise duty on petrol and diesel prices by Rs1.50 per litre. This means the price end users would pay will remain unchanged despite the recent and upcoming reduction in petrol and diesel prices.
     
    The increase in price will be passed onto the consumers so that the government can keep it coffers healthy and meet the fiscal deficit target of 4.1% of the gross domestic product (GDP). 
     
    The union government levies per litre duty of Rs9.20 per litre as central excise duty on petrol and Rs3.46 per litre on diesel. 
     
    Apart from raising government revenue, the move is seen as a fund buffer to plug the deficit in case crude prices harden in the future.
  • User

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone