CLB seeks Hoffland FD details

NEW DELHI, February 13: The Company Law Board CLB has asked defaulting Hoffland Finance Ltd HFL to furnish details of terms on which it raised money from the public. The CLB direction came on Thursday after the company submitted before the board that the money raised by it were loans against securities and not fixed deposits.

Under Section 58A of the Companies Act, 1956, CLB has powers only over FDs raised by companies.

Hoffland said it took money from depositors for purchasing shares for the investors and not as fixed deposits, a HFL representative told CLB.