Chennai, Nov 29 (PTI) Noted jeweller Nathella SampathJewelry, which has shut its outlets here citing cash crunch,today said it has taken steps to mitigate the crisis andplanned to repay dues to subscribers of gold savings schemesby March next year.
The company in a statement said it has informed topofficials of the Economic Offences Wing police here about thesteps taken to tide over the problem.
Last month, some customers alleged that the jewelry haddefrauded them of their deposits made in monthly instalmentsfor purchase of gold jewels.
Police complaints were lodged by some customers followingwhich the firm closed its operations at all eight branches inand around the city.
The firm had then itself assured customers that it wastaking all steps to meet its commitments and sought"sufficient time" to clear the dues.
The retailer has assured customers that it was taking allsteps to meet the committments.
Stating that it enjoyed the "unwavering trust" and'confidence' from the public built over seven decades, thecompany said, the promoters were committed to living up to thetrust and confidence reposed on them over the years.
It said the management was extremely disturbed and neverhad the intention to non-repay the subscribers and claimed thesituation was forced upon them due to factors like "businessset backs." Banking operations were adversely affected so much thatthe bankers chose to recall the "working capital facilities"from June this year which led the company's operations to a"grinding halt", it said, adding all the cash flows hadcascading effect on the savings schemes.
The promoters were making "all out efforts" to liquidatetheir assets and were hopeful of coming out with a time boundprogramme for repayment in three-four weeks.
The management said the repayment to customers havingsaving schemes would be settled through bank transfers and thecompany would inform them once the payment was made.
The company said it planned to clear the dues by March31, 2018. PTI VIJVS.
This is unedited, unformatted feed from the Press Trust of India wire.