Jaiprakash Associates / Jaypee Group — Fdr of 50000/- ` not received matured before 2 months

From,
Shiwbhagwan Khetawat
501 varrdhman complex
Near Uma bhawan char rasta
Bhatar Road, Surat-395001
Gujarat India
5th ‘Nov ‘2015
To,
The Hon’ble Chairman/The Secretary
Company Law Board, Paryavaran Bhawan, B-Block,
3rd floor, C.G.O. Complex, Lodhi Road, New-Delhi-110003

Regarding:-Repayment of Fixed Deposit made with Jaiprakash Associates Ltd Noida (U.P.).

Respected Sirs,
We (Fixed Depositors) have made deposit with Jaiprakash Associates Limited, Sector 128, Noida-201304 (U.P.), (Tel. No. :[protected], 4609000, 2470800) as detailed as under.
FDR No. Date Name of depositors Amount Rs. Maturity Value Due Date
[protected].07.12 Pramod Shiw Khetawat 3, 12, 000.00 4, 53, 068.00 31.07.15
Champa Shiw Khetawat
[protected].04.12 ShiwBhagwan Khetawat 1, 40, 000.00 2, 03, 308.00 30.04.15
Champa S Khetawat
[protected].06.12 ShiwBhagwan Khetawat 1, 20, 000.00 1, 74, 264.00 13.06.15
Champa S Khetawat
[protected].05.12 Kavitha S Chaudhary 1, 50, 000.00 2, 17, 830.00 01.05.15
[protected].05.12 Kavitha S Chaudhary 1, 27, 000.00 1, 84, 429.00 11.05.15

In this connection we would like to point out that New Companies Act, 2013 came into force from 30.8.2013. According to section 74(1) of New Companies Act, 2013 the repayment of above FDRs was to be made on or before 30.08.2014 i.e within one year of Act came into force .And also Rule 17 of the Companies (Acceptance of deposits Rules, 2014) provides for penal rate of interest at @18% per annum from above date.
In this connection we submit the following.:-
1. The New Companies Act provides the protection to the depositors by introducing certain conditions such as Deposit Insurance, creation of security, Appointment of trusties, creation of deposit repayment reserve account etc. for acceptance of fixed deposits.
2. As per New Companies Act repayment of deposits to be made within one year from the commencement of the Act or from due date whichever is earlier.In case of these deposits the repayment was to be made on 30.8.2014 i.e. within one year from commencement date as due dates are after this period.And therefore 18% interest to be paid to FD holders from 30.8.2014 till the date of payment as penal interest.
3. Extension of time after the due dates is tantamount to renewal of FDRs/ Acceptance of fresh deposit. Here we would like to point out that how a company can retain the amount without consent of fixed depositors & without fulfilling the requirements of acceptance /renewal of deposits as per new provisions.Here Contract Act also comes into picture.The company is bound to pay the amount on due dates & Fixed depositors can not claim before due dates. Under Contract Act Company Law Board does not come into picture and it has no role to play after due dates.Here we would like to impress on your goodselves that provisions of Companies Act are not overriding the provisions of Contract Act. Both Acts are independent Acts and hence extension of time beyond due dates are not justifiable.
4. The company informed us that CLB (DelhiBench) has granted extention over extention from time to time vide orders dt.16.02.15, 28.06.15, 05.06.15, 14.07.15 and 14.09.15.It also informed that the payment will be made in accordance with the time allowed/may be allowed as per CLB orders.
5. It seems that CLB may go on giving time as to the company again & again (5orders already passed) ignoring the interest of F.D. holders for which the provisions of New Companies Act are made & CLB is to protect the interest of F.D. holders.
6. The company informed to BSE that it has incurred loss of Rs.1618.32 crores during 2014-15 & Rs.701.87Crores during the quarter ended 30.06.15. The financial position of the company is becoming bad to worse & may not be possible to pay any amount if further time is allowed.No bankers will be able to provide further loan to it to increase their NPAs. Sale proceeds of properties sold may not come at all.There may be different reasons for selling the properties.
7. I would like to bring to kind notice of the Hon’ble Chairman that in the order dated 16.02.15 it is mentioned that the company divested some of its fixed assets but has not yet received the sale proceeds. Then question comes what for the company as divested its fixed assets. It is difficult to believe that any body will divested its fixed assets without receiving the full value of the assets. It means the company is diverting its assets for different reasons & purpose and not for repayments to fixed depositors . Whether sale proceeds are received till date . It will never be received. The company also informed that it has tied up with its banker to raise fresh loan to repay its outstanding deposits. It is also difficult to believe that their bankers will grant fresh loans specially when company is heavily loosing and bankers are increasing their NPAs day by day . The Hon’ble Finance Minister is pressurizing the bankers to reduce their NPAs & in such condition no body can believe on their submission . The bankers of the company will not be in position to release as the various banks in the consortium will never agree to their such sanction / purposal . Since then 8 Months passed nothing has happened. The company sought relief for permission to repay the existing deposits in accordance with the original terms as and when the deposit is matured but failed to do so .
8. The Delhi Bench mentioned in their order dated 16.02.15 that it is not possible to grant permission to the company to repay the existing depositors and when deposits are matured after 31.03.15. If such a relief is granted, it will become nothing but negating the intention of the legislation in Section 74 (1) of the Act, 2013. It might not be the intention of the legistation in providing discretion to the Company Law Board to grant time to the company to repay the deposits as and when they are matured, perhaps it has been legislated to extend time enabling the company to pay it sooner than later. Inspite of above observations Delhi Bench has granted six months time for repayment for FDs maturing after 31.03.15 ignoring the dates of original maturity. The Company has not paid the above FD Holders till date & no action has been taken by Delhi Bench on the company . The Hon’ble Delhi Bench is go on extending the time again & again for one or another reasons or no valid reasons.
9. I would like to inform you that I am 75 Years Old Man & retired from service before 15 Years . The above fixed depositors are not having any earned income . I therefore request you to QUASH the order dated 14.09.15 passed by the Delhi Bench & invoke the penal provisions on the company & its directors and officials responsible for not making payments to FD Holders.
10. Your honour will appreciate the view that powers given to any authority under any law without limitations and without very specific conditions defined is termed as not good at law.Here financial condition of companies is not defined in the Act and Rules and hence it is not justifiable to consider and implement the same.
11. The Company’s authorised person informed us over telephone that company will not pay the deposit amounts and penal rate of interest @ of 18% per annum with effect from 30.08.2014 as stipulated in the Rules 17 of the Companies (Acceptance of deposits Rules, 2014 until & unless extention orders are not stopped by the The Hon’ble Company Law Board and therefore request you to please consider to issue the suitable order in the matter to get our hard earned money.

We therefore request you to kindly examine the above case and issue the directions to order for the repayment of fixed deposits without further delay with interest at agreed rate till 30.08.2014 and also penal rate of interest of 18% per annum after the above date till the date of repayment.We also request you to please order for invoking the penal provisions/penalties and prosecution proceedings on the company and its Directors and Officers responsible for payment.

We hope you will protect the interest of Fixed Depositors for which New provisions of act and rules are made in the Act.

With Best Regards,

Thanking You,

Yours Faithfully,


ShiwBhagwan Khetawat
(For & On Behalf Of Above Fixed
Depositors)


Encls:-1.Copy Of The Email Received From The Company.
2.Audited Financial Results Of The Company For Quarter Ended 30th
June, 2015.
3.Copies Of Above FDRs.
4.Copies Of Orders Passed By Company Law Board New Delhi
Bench.Dt. 16.02.15 & 14.09.15.


C.C.:-To Hon’ble Joint Secretary Sh.K.V.R.Murty, Ministry Of Corporate Affairs, Govt. of India.