Court issues summons to JVG officials

NEW DELHI, FEB 19: A Delhi court has issued summons to V K Sharma, chairman of two JVG group companies, in a case filed by Reserve Bank o...

NEW DELHI, FEB 19: A Delhi court has issued summons to V K Sharma, chairman of two JVG group companies, in a case filed by Reserve Bank of India on charges of accepting deposits more than the permissible limits in violation of RBI Act.

Metropolitan magistrate Renu Bhatnagar also issued summons to the director Col T S Bhan and another senior official M C Joshi of JVG Finance and B P Singh of JVG Leasing returnable on April 17.

RBI, in its complaint against JVG Finance, alleged that the company had accepted deposits worth Rs 88.82 crore which was 756.68 per cent of its net owned fund much higher than the permissible limit of 25 per cent up to March 1996.

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Similarly, JVG Leasing had received deposits worth Rs 19.28 crore which is 147.58 per cent of its net owned fund as against the permissible limit of 25 per cent during the same period, RBI complaint said.

RBI counsel Kuldip Parihar said "the deposit forms issued by the companies did not contain any information regarding premature withdrawalscontravening the RBI provisions."

He said the companies had not provided any information about the rate of interest to the investors on the receipts issued to them. The companies also failed to submit their audited balance sheets for the period ending March 31, 1994 and 1995 within 15 days of their annual general meeting (AGM) and did not inform the bank about changes in board of directors.

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