RBI asks banks to furnish details on Golden Forest

The Reserve Bank of India has directed all Indian banks to forward information and transfer the money lying in the bank accounts of Golden F...

The Reserve Bank of India has directed all Indian banks to forward information and transfer the money lying in the bank accounts of Golden Forests India Ltd and its associate companies to a committee appointed by the Supreme Court.

Golden Forest India Ltd — a Chandigarh-based plantation firm promoted by RK Syal — had raised more than Rs 3,000 crore from small investors and later defaulted in re-payments. The company was featured in ‘Loot & Scoot’ investigative series published by The Indian Express in 2003.

The RBI directive dated October 18, 2004, came after the SC appointed a committee under the chairmanship of R N Aggarwal, chief justice (retd) to recover all assets of the company.

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The SC appointed panel — which will include two members from the RBI and Sebi — will take custody of all the assets of the company and sell these assets. The panel will also call for claims of creditors, scrutinise them and then submit its report to the SC within six months.

The RBI asked all banks to remit the balance lying in the account maintained by Golden Forest (India) Ltd. and other companies to the Chairman, Committee-GFIL. ‘‘The GFIL accounts can be also credited to the account of the Chairman, Committee-GFIL maintained with the State Bank of Patiala, High Court Branch, Chandigarh,’’ the RBI said.

The SC had authorised the panel’s chairman to appoint a CA to untangle the web of companies set up by Syal who is now in jail. While taking the deposits, Golden Forest had promised investors to return Rs 2.22 crore of their Rs 1 lakh investment in 25 years. Sebi and RBI officials found that 60 pc of the company’s money was spent on business development or office maintenance and another chunk was spent on subsidiary companies.

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