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This is my diary....what I make sense of, around me. You'll find short prose on contemporary topics that interest me. What can you expect - Best adjectives? …. hmm occasionally, tossed around flowery verbs ?…. Nope, haiku-like super-brevity? … I try to. Thanks for dropping by & hope to see you again

February 22, 2013

Be’Sahara

Big Corporate names swindling ordinary investors is not everyday News. Getting penalized by the regulators and pilloried by the courts is even rarer news.

Seeing Sahara getting a rap on its knuckles gives a flickering hope that the wheels of justice in this country are finally moving.

Scores of ordinary investors, lured by the high rate of Interests and the deceptive sense of security in investing in big Corporate names would have been left in the lurch had the Supreme Court followed by SEBI not intervened.

The newspaper advt put by Sahara in its defense was nothing but bizarre. With a picture of ‘Bharat Mata’ it claimed that it had nothing to pay & rather eligible for a refund from SEBI !

I wonder when will the Kirloskar’s meet this fate? In the early 1990’s, KIFL (Kirloskar Investment & Finance Limited) sprung up and mopped up large amounts of money from Retail Investors .

Assuring of a 14% rate of Interest and additional 1-2% incentive offered by the Agent, several thousand retail investors of the conservative variety got lured into its Fixed deposits.

Reports came in later that the company had invested the proceeds into dubious real estate investments and financial transactions and was unable to meet the redemption's. Many senior citizen Investors like my late father are yet to recoup their investments.

Kirloskar Investment & Finance Ltd followed a similar trail as Sahara and was charged by regulatory bodies like RBI, SEBI, BSE, & CLB on various counts 

  • Non compliance with RBI Laws
  • Non compliance with SEBI listing guidelines
  • Collecting money from public in money circulation schemes by making tall promises of high returns
Despite the winding up process in this case, no action has been taken against the Kirloskar family, its group companies or any of its promoters. In this context, singling of Sahara by freezing its accounts including group firms and attachment of properties seems particularly harsh.

Meanwhile the Kirloskar's who disowned this completely  celebrated 100 years of existence in 2010 as a proud Kirloskarwadi .Can somebody hand me a rotten egg or slipper or something?
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