Directive to finance company

By Our Staff Reporter

CHENNAI, MAY 8. The Madras High Court has directed the MCC Finance Limited, which ran into trouble in 1999 when it owed Rs. 168 crores to thousands of depositors, to disburse 15 per cent of the principal amount as the second part-payment.

Noting that a minimum of Rs. 25.97 crores would be available for disbursement as on May 5, 2001, a Division Bench comprising Mr. Justice P.D. Dinakaran and Mr. Justice K. Gnanaprakasam said the amount should be disbursed to depositors as per the court's earlier order.

The court's December 20, 2000 order stipulated that 15 per cent of the principal amount be distributed to depositors. In any case, the payable amount should not be less than Rs. 1,000 and not more than Rs. 45,000.

Though, initially, 5,000 cheques were returned unserved to the depositors, 1,500 duplicate cheques were issued to eligible depositors later.

For those who failed to avail themselves of the first instalment amount, 30 per cent of the initial amount would be paid now, according to the order.

The Economic Offences Wing police had arrested the company promoters, Mr. A.L. Vadivelu and his son, Mr. Jawahar Vadivelu, and released them on bail in September 1999.

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