Madras HC appoints nine-member committee to settle dues of investors in Disc Assets case

Chennai, October 20: A nine-member committee has been appointed by the Madras High Court to settle an amount of more than Rs.761 crore dues of about nine lakh investors. Over 10 years ago these depositors have deposited money with Tamil Nadu-based Disc Assets Lead India Limited for the purchase of plots.

 

As the head of the committee, retired Jammu and Kashmir High Court Chief Justice N Paul Vasanthakumar is appointed by the court. He will act an administrator of the company which is facing action by the SEBI for some violation.

The court’s intervention was solicited through many petitions which were filed to settle the dues of the investors. After examining the report of retired high court judge GM Akber Ali, the court set up the committee. To look into the grievances of investors, Ali was appointed as the court commissioner earlier. Suggestions of senior counsels B Kumar and MS Krishnan were taken who were appointed as amicus curiae (an impartial adviser in a particular case) to assist the court.

Disc Assets Lead India Limited started its business operations in the year 2006 with the view to cultivate prone agricultural lands. In order to expand the business through diversification, and to raise the required finance, the company became a public limited company, Disc Assets Lead India Limited. Over 12 lakh customers have invested around Rs. 1,200 crore in the schemes, but the plots were neither allotted nor the deposited money were refunded.