Chennai: Disc Assets Lead (India) Ltd, which allegedly cheated over 9 lakh depositors to the tune of over Rs 761 crore, has about 3,520 acres of vacant land and other properties at different places in the state, all these worth around Rs 1,147 crore. The company stated this in its scheme of settlement filed before Justice G.M.Akbar Ali, a retired judge of the Madras high court, appointed earlier as commissioner for settlement of the dues of investors.
The company was incorporated in 2006 as Disc Agro Tech Ltd and later renamed Disc Assets Lead (India) Ltd. It floated land purchase schemes (cash down and purchase by instalments). As per the schemes, investors entered into agreements with the company by booking lands of different sizes and making payments in instalments. The land was to be registered in the name of the investor once payment was completed.
From the scheme of settlement, it appeared that the company had collected Rs 1,137 crore from about 12.27 lakh investors. The company claims to have settled the dues of about 3.21 lakh investors amounting to Rs 511 crore and there were 9.51 lakh investors whose dues were yet to be settled, the amount payable to the tune of 762 crore.
The Securities and Exchange Board of India had initiated action against the company, as it had not obtained a certificate of registration as required under the provisions of the SEBI Act. In 2015, it also directed the company to refund the amounts collected under the schemes and wind up all schemes and prohibited the company from selling or disposing of its properties except for the purpose of refunding investors. In June 2016, the Economic Offences Wing of the TN police registered an FIR under various provisions of the IPC which include cheating.
In the scheme of settlement filed by the company before Justice Akbar Ali, it was stated that the company has about 3,520 acres of vacant land and other properties in various places, all these worth around '1,147 crore. The company sought orders permitting it to settle the dues of investors by way of sale of its properties. However, one of the parties contended that the special provisions of the TNPID Act cannot be bypassed once an FIR has been registered under the TNPID Act.
Having regard for the complexities of the issues involved, the First bench comprising Chief Justice Indira Banerjee and Justice M.Sundar, which was hearing the case, appointed senior counsels B.Kumar and M.S.Krishnan as amicus curiae to work out the mode by which depositors/investors of the company could be paid their dues expeditiously in the light of the TNPID Act, without interfering with the criminal proceedings against the company.
Accepting the recommendations made by the amicus curiae, the bench said that an offence punishable under the TNPID Act may be compounded by the competent authority before institution of the prosecution. It was only after the institution of the case by filing charge sheet or final report, that permission of the special court was required for the purpose of compounding the offence.
In other words, if the amounts that were payable by the financial establishment were returned, the offence committed under the TNPID Act can be compounded and the issue closed. Due to the fact that there were a number of depositors, the huge stakes involved, the mammoth task to identify investors, identify lands that have been purchased, value the land and realize the actual value by way of sale of properties, the amicus curiae suggested a committee with competent authority under the TNPID Act, representatives from the EO Wing, SEBI and a team of chartered accountants to carry out the task of identifying investors, lands that have been purchased, valuing the lands and selling this to settlement dues to the investors. The bench thus constituted the committee headed by Justice Paul Vasanthakumar.
