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SC admits plea to implead exporters in forex derivative case

Tirupur: The Tirupur-based Forex Derivatives Consumer Forum (FDCF), a group formed by aggrieved exporters who reportedly lost Rs. 300 crore after purchasing ‘exotic forex derivative products' offered by banks, has finally got some relief in the case fought against the banks in the issue.

The Supreme Court on Friday admitted the petition filed by the Forum to implead them in the Public Interest Litigation filed by Orissa-based businessman Pravajan Patra against the banks in the issue, as co-respondents.

The Forum members, comprising exporters from across the country, purchased the exotic forex derivative products from 22 banks to hedge against the risk of foreign exchange fluctuations happened in 2007-08 fiscal and eventually ended up with huge losses against the promises said to have been made by the banks.

Vacate stay

“We have moved the Supreme Court to implead ourselves in the case to strengthen the fight against those banks, which had cheated us and to vacate the stay on the Central Bureau of Investigation's inquiry against the banks,” Forum president Raja Shanmugam told The Hindu here.

The CBI inquiry was ordered by the Orissa High Court on the PIL filed by Mr. Patra, which was subsequently stayed by the Supreme Court after the Fixed Income Money Market Derivatives Association of India comprising bankers moved the apex court.

Mr. Shanmugam said the Forum decided to join Mr.Patra following this stay order. Senior advocate C.S.Vaidyanathan appeared for the Forum in the Supreme Court.

The bench comprising Justices Dalveer Bhandari and Deepak Varma pronounced the verdict allowing the impleadment, the Forum sources said.

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