The Hindu : Karnataka / Bangalore News : ‘Viniv asset disbursal can be facilitated by District Judge’

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Tuesday, Jun 03, 2008
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Karnataka

Karnataka - Bangalore

‘Viniv asset disbursal can be facilitated by District Judge’

Staff Reporter

BANGALORE: The continuing imbroglio over the distribution of assets held by Viniv Inc., a chit fund company that went bust, among its depositors appeared headed for a solution when the Karnataka High Court suggested that a District Judge could be appointed to oversee distribution of money among thousands of depositors.

The court made this suggestion to the Government prosecutor and to counsel of Sreenivasa Shastry, the founder of Viniv Inc., when a bail application by Shastry came up for hearing. The prosecution urged the court to reject the bail plea, saying that Shastry had so far not repaid the depositors. Moreover, the money seized from Viniv Inc. and some of its directors was still with the authorities. However, the modalities of handing over the money to the depositors had not been worked out as Shastry had not come forward with any concrete proposal. Shastry said he was willing to repay Rs. 4 crore, which he owed to the depositors. The State claimed that Shastry had so far not given a statement of his assets and liabilities and it could proceed with the distribution of money only after he gave a complete list of the property he owned. Justice Huluvadi G. Ramesh, who is hearing the petition, suggested to Shastry that he could furnish a detailed list of the properties he owned. The judgeadjourned further hearing on the case.

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Karnataka