MADURAI: As reports about thousands losing crores of money in FQL and Neomax scams continue to make news, investors in Madurai who lost Rs 1,200 crore in Disc Assets scam in 2015, continue to wait for their lost investment money.
Disc Agrotech Limited, the company behind the alleged financial fraud, began operations in 2006 with its headquarters in Madurai. Its group companies were known by multiple names with the prefix or suffix “Disc”.
The estimated amount in the fraud is Rs 1,200 crore.
Speaking to TNIE, members of the Dis Dal Alyan Group of Companies Investors and Agents Welfare Association stated the company assured investors of maximum returns. Around 12.5 lakh people from Tamil Nadu and neighbouring states invested in it. While it was actively paying returns, about five lakh investors received profits totalling Rs 400 crore. This success prompted more than seven lakh additional people to invest in the group’s 34 sister companies in subsequent years.
Another investor said that after SEBI found the company had not obtained the certificate of registration required under the SEBI Act, it faced legal issues from 2015 onwards. SEBI banned it from receiving public money.
Multiple cases then proceeded in the Supreme Court and High Courts. A one-man commission also conducted a detailed investigation, held inquiries, and seized the companies’ properties.
“Around Rs 270 crore has been kept ready in a nationalised bank since last year for distribution to the duped investors. The High Court had clearly directed that the amount be disbursed soon and the case be given due importance. However, the trial court in Madurai has been adjourning the case for the past five months,” the investor stated.
The investor further said the claim settlement can be provided only after registration through an online portal. Not all victims of the case have registered on the website.
Those who have not registered on the portal yet will also register if money is disbursed promptly to those who have already registered. In that case, the remaining properties of the scam companies have to be auctioned and then distributed to the remaining investors, he reasoned.
“Every day, week and month of delay affects only the investors and their families, who have been waiting for at least 10 years for their rightful claims,” they said.
A group of investors raised the same points with the Economic Offences Wing in Madurai, which is currently investigating the criminal case related to the Disc scam. They had registered a case under IPC sections 406, 20, 120 B as well as the Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act.
A senior official from the EOW unit assured them that the aspects conveyed would be looked into.
