A majority of investors in Viswapriya (India) Ltd accepted the company’s plan to pay back debenture-holders their money in three instalments at a Madras High Court-ordered meeting on Sunday. However, a section of the investors led by Viswapriya Investors Welfare Association opposed the move.

Viswapriya was set up by R. Subramanian, who founded the now defunct discount retail chain Subhiksha Trading.

A group of investors had complained to the Economic Offences Wing of the Tamil Nadu Police that Viswapriya failed to pay back debenture-holders their dues of over Rs 120 crore.

The court ordered the meeting after Analog Financial Services Pvt Ltd, a shareholder of Viswapriya, submitted a proposal to repay the debts of Viswapriya in three instalments. It agreed to repay 20 per cent of the amount on completion of one year from the date on which the debenture was originally due, 30 per cent on the second year and the remaining 50 per cent in the third year with interest.

According to a statement, the company has stated that it has substantial receivables which, however, are not currently due in view of the revolving nature of the loans and is, therefore, unable to raise temporary finance against the same to meet the obligations of the debenture-holders.

However, K. Selvaraj, President of the investors’ association, said the company’s balance-sheet shows tangible fixed assets only to the tune of Rs 15 lakh, and the ‘reserves’ shown “is nothing but a paper entry, as even a cheque for Rs 300 got dishonoured.”

The next hearing on this case is scheduled for November 26.

ravikumar.r@thehindu.co.in

Related Topics