Committee - Golden Forest (India) Limited

Appointed by the Hon'ble Supreme Court of India

Frequently Asked Questions

1. How many claims have been filed?

Approximately 15 lakh claims have been filed up until now.

2. How will the Committee raise money for distribution among claimants?

The payment to the investors depends mainly on the collection of funds. The minimum funds required are about Rs. 2000 Crore. There is only one source for collecting funds. That source is properties of the company. Pursuant to the order of the Hon'ble Supreme Court dated 05.09.2008, some properties situated at Jharmari, Nalagarh, Jalandhar, Amritsar, Kurukshetra, Dehradun and one Shop cum Office at Sector 11, Panchkula were put to auction and sold. As per terms and conditions 25% of the bid amount was deposited. The balance of the bid was to be deposited within 30 days of the confirmation of the sale by the Hon'ble Supreme Court.
The total amount, thus, collected was about Rs. 55 Crore. The Committee filed applications before the Hon'ble Supreme Court, giving complete details of the auction proceedings and for confirmation of sale. These applications are pending till date.
There has been one fresh development that there are two parties M/s Vavasi Telegence Pvt. Ltd and M/s D. S. Construction who have filed applications for purchase of assets of all the group companies and for clearing the liabilities. These applications also are pending before the Hon'ble Supreme Court.
Now, the final position is; if the application of M/s Vavasi Telegence Pvt. Ltd or M/s D. S. Construction is accepted and they deposit the required money, the payment to the investors could be made within a period of six months to one year. This is all subject to the orders of the Hon'ble Supreme Court. But, in case the funds are to be collected by the sale of the properties which are situated in different parts of the country, it will take a very long time to sell the properties and to collect the funds.
Certain properties are involved in legal tangle, first their possession is to be recovered and thereafter the properties to be sold and the sale confirmed by the Hon'ble Supreme Court. This all is a time consuming process. The Committee has proposed, subject to availability of funds, to pay the principal amount invested plus interest of 8 to 9% from the date of investment till the date of payment. This, again, is subject to the decision of the Hon'ble Supreme Court.
There are other complications involved, as well, for instance the company has made settlements with group of investors under some resolutions. According to the Committee-GFIL, these settlements are illegal. The properties shall have to be recovered with the help of District administration and the police. This is again a time consuming process.
Thus, in conclusion, the Committee-GFIL wishes to inform the depositors/investors that the payments wholly depend on the collection of funds. As soon as there are some vital developments, the Committee-GFIL shall make an effort to inform the investors/public through internet and through other ways of communication. Meanwhile, the investors are requested to keep patience as all possible efforts are being made to collect the funds.
As regards the receipt of claims after the cut off date i.e. 10.08.2006 (fixed by the Hon'ble Supreme Court), the Committee-GFIL shall at the appropriate stage move the Hon'ble Supreme Court for condoning the delay in receipt of genuine claims and these claims also be paid.
The Hon'ble Supreme Court had passed an order for filing of original receipt or notarized photocopy of the receipt. Those investors who have filed original receipts issued by the company or notarized photocopy of the receipts, their claims are being considered. The Committee-GFIL has considered the other claims as well and if satisfied with the genuineness of the claim, these claims also shall be sympathetically considered.
For the information of the investors; all the claims received have been computerised, if any inquiry is received regarding the filing of the claim, the necessary information is provided.
No investor is being given preference in payment of the claim. Subject to the order of the Hon'ble Supreme Court, the claims shall be paid by a cheque drawn in favor of the investor only. The transferee of any claim shall not be recognised. The payment shall be made only to the investor and in case of his/her death, to his/her nominee.
No definite date or period of time can be given regarding payment.

3. I had filed a claim almost two years ago. When will I get my money?

There is absolutely no certainty as to when the payment will be made. Every effort is being made to gather funds for disbursal to the investors. However, due to the magnitude of the problem, it may take years for the funds to be collected and disbursed. Claimants are advised to exercise patience.