The Hindu : National : Margadarsi to give details of payments

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Tuesday, Jul 24, 2007
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Margadarsi to give details of payments

Legal Correspondent

We must know to whom they repaid deposits: A.P
Case posted for August 24

New Delhi: The Supreme Court on Monday extended the interim order restraining the Andhra Pradesh Government from attaching the properties or freezing the accounts of Margadarsi Financiers pursuant to the issue of a show-cause notice under the Andhra Pradesh Protection of Depositors of Financial Establishments Act.

Escrow account

A Bench, comprising Chief Justice K.G. Balakrishnan and Justices Tarun Chatterjee and R.V. Raveendran, asked Margadarsi to file an affidavit giving details of payments made to individual depositors and deposits made in an escrow account.

The matter was posted for August 24.

The Bench was hearing an application filed by Margadarsi seeking an interim stay of all further proceedings pursuant to the notice issued on the basis of two reports submitted by the N. Rangachari Committee and a direction not to invoke the APPDFE Act.

Interim order

On April 20 the court passed the interim order for the period till Monday.

Senior counsel Harish Salve, appearing for the petitioners, said that as per the April 20 order statements of deposits repaid to the depositors for April, May and June and deposits in the escrow account were furnished to the Reserve Bank of India and to the State Government.

However, senior counsel K. Parasaran, appearing for the State, said the statements did not contain details of deposits returned to individual depositors. “We must know to whom they have repaid the deposits. Also we must know the details of the deposits in the escrow account. Let them file an affidavit to this effect.”

Mr. Salve said the petitioner would file an affidavit in this regard.

Additional affidavit

In an additional affidavit, Margadarsi said that till July 14, Rs. 581.77-crore matured deposits (from November 2006 to June 2007) had been repaid.

It enclosed the statements from the bankers for the deposits held in the escrow account and said it would file further affidavits.

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