Indo-French asked to refund money

It may be recalled that the Bombay High Court has in its order dated May 6, 1998 ordered Indo French Bio-Tech Enterprises Ltd, its chairman and managing director, Kumudchandra J Bodiwala and the whole-time director Prafulla Ranadive, to refund the amount invested by depositors.

Earlier, the Securities and Exchange Board of India had barred the promoters of Indo-French Bio-Tech from entering the market. The investors who have invested invarious projects floated by the company had been agitated.

In it order, the Mumbai High Court has also asked the Mumbai police to investigate the alleged siphoning of public funds to the tune of Rs 30 crore by the company and Indo Global Biotech Ambience both allegedly floated by the same promoter.

A division bench consisting of Chief Justice, M B Shah and Justice RMS Khandeparkar also directed the economic offences wing of the police to investigate the assets of directors of the promoters and the loans received by the company from the financial institutions. The judges also asked the police to find out whether IFBEL was holding a 500 acre plot on Nashik on the basis of which several investors were duped. The order came after a petition was filed by one lawyer and two others that these companies have committed a fraud on over 100,000 investors spread all over the country.

The company entered into an collaboration with the a foreign company which gave it a bank guarantee.