NEW DELHI, Dec 30: The Company Law Board (CLB) today directed the Modern group to re-pay the fixed deposit money to its depositors in four instalments spread over three years.The board ordered the Rs 1,100 crore group to repay amounts up Rs 10,000 of fixed deposit in two instalments of 40 per cent and 60 per cent respectively.
The first instalment will have to be paid after six months from due date of deposit while the balance after 18 months from date of maturity of fixed deposit, sources told PTI. For amounts between Rs 10,000-20,000, 10 per cent has to be paid after six months from due date, 15 per cent after 18 months, 35 per cent after 30 months and the balance 40 per cent at the end of 36 months from date of maturity.
For amount exceeding over Rs 20,000, CLB directed the defaulting group to re-pay 10 per cent of the amount after six months, and a similar ratio after 18 months from due date respectively, while it has to pay 25 per cent and 55 per cent at the end of 30 months and 36 months
respectively, sources said.
Modern group's four companies - Modern Denim, Modern Terry Towel, Modern Syntex and Modern Threads - have been defaulting in payment of fixed deposit to its deposit holders since July this year.
The depositers had filed a petition with CLB under section 58-a of the companies act 1956 which empowers the board to direct the company to pay the fixed deposit money to the holders.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
