PNL depositors to meet on November 6 to chalk out modalities

PUDUCHERRY: The Pondicherry non-banking investors' protection association will hold a meeting of its members at 10am on Wednesday at Naveena Garden to chalk out modalities to recover their money and gold valuables deposited and pledged with the Pondicherry Nidhi Limited (PNL), which closed its operations without any prior notice in 2004 after mobilizing 68.5 crore from over 13,000 people,

Association president Dayal Dinadayalu appealed to the members to attend the meet without fail and furnish details on their cash deposits and on the quantum of gold valuables pledged with the non-banking finance company in the designated forms available at the venue.

He said the Supreme Court, which directed S V Global Mill Limited to pay 100 crore to S Natarajan, one of the directors of PNL, ordered the company to deposit the cash with the court following the intervention of the association.

The Puducherry government in August this year attached 100 crore cash under the Puducherry Financial Institutions Depositors' Protection Act, 2004 to ensure the recovery of the cash deposited and gold valuables pledged with the PNL by the customers.

Association secretary D Rajkumar said PNL through its registered office in Puducherry and branches in Cuddalore and Neyveli mobilized 68.5 crore from more than 13,000 depositors. The company failed to refund the deposits with interest and return gold valuables to its customers, who came to redeem the valuables. The CID sleuths registered a case against the company on charges of misappropriation of public money and fraudulent diversion of funds in 2004, he said.

The investigation agency filed the chargesheet in November 2010. The agency examined 2,181 witnesses and recorded their statements and added that 2,130 related documents and registrars were seized from the company. Inquiries revealed that the company diverted funds to their sister concerns in Ariyur, Tiruvannamalai, Salem and Kumbakonam. It also invested the fund in immovable assets in Chennai, Kumbakonam and Salem. It re-pledged the gold valuables pledged by the customers in the various public sector and private sector banks in Puducherry and Cuddalore, said Rajkumar

He said the National Securities Depository Limited (NSDL) froze the Demat accounts of PNL on charges of failing to repay the deposits collected from the gullible public following an appeal the economic offences wing (EOW) II, Chennai unit in November 2016. However, a court granted an interim stay on the freezing the accounts.