Rs 1,130 crore scam: Disc Assets directors barred from leaving country

Justice Indira Banerjee and Justice Abdul Quddhose passed the interim injunction on a contempt petition moved by one of the depositors Dinesh to punish the directors for not complying with the order of the court dated October 11, 2017. The court had directed the submission of all properties, including originals, to the nine-member committee headed by retired Justice N Paul Vasanthakumar to settle more than Rs 761 crore to as many as nine lakh investors for purchase of plots over 10 years ago.

The bench in its interim order said, “Since respondents 1 to 6 (directors) are, prima facie, in contempt and the deposits of innumerable depositors are concerned, we deem it appropriate to issue an order of injunction restraining the respondents or any of them from leaving the country for a period of two months from date or until further orders of the court, whichever is earlier.” Earlier, additional advocate general C Manishankar had submitted that there is a possibility that the respondents, who have scant respect for orders of the court, may flee the country to frustrate or delay the attempts of the committee constituted by the court to liquidate the dues of depositories by disposal of the assets of the company — both movable and immovable.

The bench had set up the committee after perusing the report of retired High Court judge G M Akber Ali, earlier appointed as the court commissioner, to investigate the grievances of the investors.

The company had in 2006 floated schemes for purchase, development and maintenance of agricultural land by way of instalment and cash down plans. A total of over 12 lakh customers had invested about Rs 1,200 crore in the schemes. But they were neither allotted the plots nor refunded the deposit money.

However, after the scam broke, a few of them were paid.