Investors, mostly comprising professionals such as doctors and advocates, were demanding their money back after word spread that the SHR was winding up its business in the city, thus leaving over 2,000 SHR investors in troubled waters. The investors learnt that the SHR was merging with its sister concern Sterling Tree Magnum (STM) since the resort company was facing a severe financial crunch.

This added fuel to the fire and further infuriated over 50 investors present at the company's office. They charged the company's official with playing with their money without taking them into confidence and that the merger was merely a gimmick to keep them in the dark.

People brought to the notice of the company the issue of non-payment of salaries to the officestaff, delays in payment of office rent and even disconnection of telephone lines for non-payment of bills. Investors alleged that a similar situation had developed when the Sterling Group's yet another sister concern, Maxworth Orchards, closed down its operations in the city and left thousands of investors in the lurch.

Vicent Fernandes, who looks after the company's Western Region operations, was literally cornered following the investors' onslaught, so much so that his efforts to convince investors' about the merger as an exercise aimed at improving the financial status of SHR, went in vain.

He, however, assured investors that senior officials of the company would soon hold a meeting of investors in city and it was here that the merger was scheduled to be announced. He expressed his apprehension over the rumour and said did not rule out the possibility of the involvement of the company's disgruntled employees.

When investors demanded that Fernandes issue post-dated cheques for cancellation of theirSHR shares, he pleaded inability to do so. He asked them to submit applications and wait for 90 days for the money to be returned. But unrelenting investors did not accept his argument.

Fernandes then got one of investors -- Advocate Navneeth Shukul -- to speak to the STM president G Rajan over the phone. Advocate Shukul told Rajan that the investors feared that the company was winding up its business due to huge financial losses and that property of the company was being allegedly mortgaged. He urged Rajan to rush immediately to Nagpur to clear the doubts in the minds of the investors and fax the details of the present situation of company's assets immediately.

According to sources, SHR's operations have been in a mess for the past one and a half years, despite the company doing good business considering the fact that the company has over 2,000 investors in the city, collectively accounting for an investment of more than Rs 40 crore in SHR shares.

Of late, the company's local staff has not been gettingtheir salaries on time and in certain cases the salaries are allegedly outstanding for three months. The company first had its office in Ramdspeth, but later shifted to the second floor of a building at Central Bazar road. It is learnt that this premise too was being vacated shortly due to outstanding rent.

Two of the company's telephones (nos 535840 and 547885) are disconnected for non-payment of bills. According to insiders, the company still owes large amounts in the form of incentives and perks to more than 40 executives who have left the company, many of whom were present at the company's office to witness the ongoing drama. Besides, there was fear among the employees that the merger may lead to trimming of staff as had reportedly happened in some of the company offices in the south and west.

Meanwhile, the SHR issued a press release to clarify their stand on the issue which stated that there was no merger between the STM and the SHR and that both companies had decided to synergise and effectivelyuse the resources, strengths and manpower of both companies after looking at the current economic scenario.

It was further decided that day-to-day management, sales, marketing and member service departments would be synergised at the field level.