Anubhav group chief surrenders

Raghavan said Natesan who appeared before the police this evening, was taken into custody and would be produced before a magistrate tomorrow for remand. On Wednesday many depositors, who went to the group’s offices to collect their deposit amount after maturity, found the doors locked and lodged complaints with police. Among those who lodged complaint included a former union deputy finance minister, Magan Bhai Barot, who claimed that he had invested atotal of Rs 25 lakh in the company.

Raghavan said so far 70 complaints had been received and more were pouring in. Police sources said Natesan drove down to the commissioner’s office and made himself available for questioning at 1640 hrs. Interrogation was in progress and he was likely to be produced before a magistrate court for remand later this evening.

He was arrested under Section 420 and 408 of the Indian Penal Code and various sections of the investors’ protection act, enacted by the Tamil Nadu government recently after a host of private finance companies cheated gullible depositors and folded up early this year.

Barot, one of the depositors, had discussions with some co-depositors and told newsmen that the group had cheated’ investors in several states. He said the depositors had elected him as the president of the just formed All India Anubhav Depositors Association.

The association was planning to file a public interest litigation against the company, he added. He urged the Tamil Nadugovernment to take control of all the assets of the group and initiate criminal action against it. The group, according to his own words, has deposits to the extent of Rs 100 crore in collective investment scheme and Rs 106 crore in other group finance companies. He had claimed that as per government approved valuers, the group had teak assets worth Rs 675 crore if felled and sold over a period of three years ending 2000 AD and was more than enough to meet all liabilities.

Duff and Phelps Credit Rating India Pvt Ltd (DCR) has downgraded Anubhav Plantations Ltd’s Rs 50 crore teak farm’- collective investment scheme from DCR Ind 4 (CIS) indicating unsatisfactory ability to meet obligation of the investors to DCR Ind 5 (CIS) which indicates that the scheme has defaulted or is expected to default in its stated obligations.

Natesan last night in a statement said the group had assets worth Rs 189 crore and liabilities were only about Rs 28 crore and appealed to depositors not to panic. He also assured themthat their claims would be settled in due course. The company had no intention to cheat the depositors, he said.