In what could lead to one of the biggest land transactions in the country, the Supreme Court will hear on September 16 two companies who have put in bids to acquire the entire land assets of the infamous Golden Forest India (GFIL) which is under liquidation. These two companies are Vavasi Group promoted by National Knowledge Commission chairman Sam Pitroda, and the Delhi-based real estate firm Chadha Group.
“We have received applications from these two companies for the takeover of all the assets of Golden Forests. As long as we manage to raise Rs 2,000 crore, which would benefit GFIL investors, we have no objection,” Justice RN Agarwal (Retd), chairman of the Supreme Court-appointed committee to sell Golden Forests assets told from Chandigarh. GFIL’s land assets are spread across Punjab, Haryana, Uttarakhand, Madhya Pradesh, Orissa and Andhra Pradesh.
“We have forwarded these applications to the Supreme Court, which is expected to take up the matter in its next hearing on September 16,” Mr Agarwal said. The bids are far more than Rs 2,000 crore of current liabilities which includes interest of the defunct company, Mr Agarwal said.
The former judge said that nearly 110 companies, which were floated by GFIL to buy land across the country, will need to be merged with the parent company first so that a bidder can take over the land bank. “This is quite complicated… a lot of legal formalities need to be completed first,” he added.
Analysts said the land bank of around 12,000 acre is approximately valued at Rs 5,000 crore. “We have managed to sell some small portions of GFIL’s land and have received part payment. This will also need to be ratified by the Supreme Court, along with Vavasi and Chadha groups’ applications,” he said.
Golden Forest India made news in the mid-nineties when the company raised funds worth Rs 1,000 crore from over 22 lakh investors across 11 states to invest in plantation schemes. But it soon defaulted on payments to the investors. So, Sebi — which bought all plantation schemes under its purview in 1997 — moved court and initiated proceedings against the company’s promoters led by its chairman R K Syal.
As the case against the company was heard across various courts, the matter was finally transferred to the Supreme Court. Four years ago, the apex court appointed a committee under the chairmanship of retired chief justice RN. Aggarwal, with two members, one each from the Reserve Bank of India and Sebi, for the purpose of taking into custody all the assets of Golden Forest and calling for claims of creditors and scrutinizing them. The court later asked the committee to auction all the assets of the company so that the investors could be repaid.
A banker told that Vavasi is doing a due diligence of GFIL’s assets and talking to various banks to raise funds required for taking over GFIL’s assets. A questionnaire sent to Mr Pitroda went unanswered.
15 Comments
I put my hard earned money 40,000 in the Golden Forest India Ltd. Can I get it back woth interest?
I put my hard earned money 40,000 in the Golden Forest India Ltd. in 1995 Can I get it back with interest?
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Really i cant understand if company is worth aprox Rs.5000 crore and liabilities is Rs.2000 crore, then why company is in trouble. If assets worth is Rs.5000 crore, This clearly shows company is not fraud. I feel this is all a very big political and land mafia is involved. Even today hand over the company to the chairman or directors i hope definitely they do well, I dont think they carry the lands n runaway…..
when will people get back their money and when wil it ome to an end
Dear Miss Rajni,
I have read your article and i happy to read this but afer that not find any information ragarding this deal. Please let me know what is the dicision on 16th September regarding these deal.
Because I the little investor & if is it true it will be helpful in my life.
Thanking you
Manvesh Chechani
Dear Sir,
Regards, Nice post fromyou for all those unlucky investors. Kindly send me the latest news regarding the new update of 16 th sept 08. I will be great ful to you.
thanking you
G N. Patidar
Indore
dear sir,
i am agent of goldenforest india i invested my ownmoney and also the commition and invester money in this company around 6 to 8 lakhs please give me the suggestion when we gave the money to our investor
i hope that u wil give the suggestion on my email adress
thanking u
sujit patel
Balasinor
Gujarat
gfil was doing well in my view before legal tangle imposed on the company. i was unlucky investor as well as sales member in the company. I not only need back invested money but also a scope for earnings and employment. lets not ride on capitalistic crafts and be grounded firmly on a realistic facets of human life-khana, karma, etc
Dear Sir,
My question is that what our Government is doing regarding this case I mean (Golden Forest of India Ltd) when it would be possible that the investors can get back their money.Kindly send me the latest news regarding the same.
Many Thanks
Zubair
Dear sir:
I too invested around 45.000 in GFIL. This money was invested keeping in view my daughters higher education. But i had to borrow money on loan for that purpose inspite of my hard money invested. I do not know how many such investers like me are there. I am working in private company with no pension facilities. I am going to superannuate in another 3 yeras. My concern and worry is will this case get settled atleast in another yeras time. Can I get back my money invested. I feel ashamed to say that we live in Gandhian ideal independent India with due care for human beings and upholding the truth.
I really want my money back very badly. Even the agents of GFIL have disappeared.
When it will end?
India always awakes after the passage of time. First it were finacial companies , who siphoned the poor investors hard earned money and then Plantation companies. The value of Rs 5000/- is arbitrary, as the land value depends on various factors.Why the Committee would agree for Rs 2000 crores against a much higher claim , from a 5000 crore company is any body’s guess
Nice reading your comments. Pl give us updates when we are going to get the money back as we have invested and we badly need the money back.
Thanks