RBF announces repayment schedule

By Our Staff Reporter

CHENNAI, MAY 5. Depositors of the beleaguered Royapettah Benefit Fund (RBF), a nidhi company, will get back 10 per cent of their deposits, not exceeding an upper limit of Rs.2,000, by August this year.

As per the scheme, the repayment will be made in two instalments of five per cent each, of the deposits, subject to a limit of Rs.1,000 each. The repayment, to be made only through cheques, would commence by May-end and the first phase of the process is expected to get over by June.

Cheques for the second instalment of the repayment will be issued from August, Mr. A. R. Rao, Chairman of RBF Nidhi, told presspersons here today. The beneficiaries under the scheme would also include 48,000 depositors, who had deposits below Rs.2,000.

Interest on deposits would be frozen as on November 30. Those who had not received monthly interest on fixed deposits for November 1999 would be paid soon. The amount due to each depositor in the case of cumulative and recurring deposits would be calculated after taking into account the accrued interest upto November 1999.

The Company Law Board-appointed Board of the Nidhi, he said, was hopeful of mobilising Rs.60 crores required for the repayment before July-end. On date, the Nidhi was in possession of Rs.38.5 crores, which included Rs.35 crores remitted by Balaji Group, the erstwhile promoters, on a directive from the Madras High Court. The Board was expecting a payment of Rs.15 crores from the Balaji Group.

Loans extended to three borrowers, totalling Rs.163 crores, had become ``bad and irrecoverable to a very large extent'' and the issue was under investigation by the police.

Several film personalities and politicians who had obtained loans from the Nidhi, he added, were being non- cooperative and the Board had initiated legal action against some of them.

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Section  : Regional
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