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Richa Mishra

New Delhi , April 7

TO avoid any overlap with the one-member enquiry committee investigating the JVG Group of Companies, the Serious Frauds Investigation Office (SFIO) is understood to have sent the case back to the Ministry of Company Affairs (MCA). The Ministry had referred the cases to SFIO earlier this year.

"A one-member committee set up by a High Court is already investigating into the affairs of the JVG Group companies. To avoid any overlap with the ongoing investigations, the case has been returned to the Ministry," official sources said.

Officials said, if need be, the scope of investigation of the enquiry committee could be expanded. Besides, two of the group entities referred for investigations are under liquidation, therefore leaving little scope to probe, sources explained.

Early this year, the Ministry had referred a total of nine JVG Group cases to the SFIO, particularly those, which had accepted deposits from the public but defaulted on repayment in the 1990s.

In their complaints, investors had alleged that the companies had assured a handsome return in the shape of heavy interest, but after collecting the hefty amounts, the company did not pay anything to them.

Some of the group companies include JVG Finance, JVG Departmental Stores and JVG Consumer Products.

The RBI had stopped the acceptance of public deposits by several NBFCs and moved liquidation procedures against several groups, including the JVG Group, with three of its companies, JVG Finance, JVG Leasing Ltd and JVG Securities, facing investigation and liquidation.

The Delhi High Court had appointed a liquidator for JVG Finance to pay off the liabilities to creditors in the late 1990s.

In July 2004, under the Delisting Guidelines issued by SEBI, the stock exchanges were informed that the Delisting Committee had decided to de-list JVG Departmental Stores with effect from July 2, 2004.

Trading in the securities was suspended for violation of listing agreement clauses for more than three years.

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