Approach the Consumer Forum
I was in a much deeper shit. I purchased frm Maytas who were the Satyam scamsters who cheated many hundreds. Having paid 12 lacs and disbursed 49 lacs loan from IDBI Bank to Maytas (IL & FS) builders, I got justice thru the Courts. Read the case history below.
Case of the Victims of Maytas Properties Ltd
• MPL announced the Hill County project in 2007 and attracted customers through alluring advertisements and special offers, especially for the NRI’s
• More than 600 customers booked villas and flats; many paid MPL in advance trusting the brand of Satyam Computer Services and the name of the Rajus
• Banks disbursed entire loan amount in advance in violation of tripartite agreement and RBI guidelines
• MPL delayed construction by 5 – 7 years, abandoned some of the flats and reallocated flats to unwilling buyers
• MPL inducted IL&FS as a new promoter by giving 80% stake for a mere Rs.20 lacs; MPL has a land bank of 3000 acres across AP & TN states
• Company Law Board (CLB) permitted the induction of IL&FS with the condition that MPL will construct all flats and villas in 18 months and settle all dues and legal disputes
• CLB gave another 6 months’ time which expired on 30-Jun-2013 and the project is now half complete
• MPL dragged its victims to Arbitrator’s court which involved 20 – 40 visits and adjournments over 5 – 6 years
• The appointment of the Arbitrator has been done in violation of the norms; MPL has unilaterally put this on hold and then caused the Arbitrator to suddenly issue notices in newspapers to humiliate the victims
• Not a single victim has been heard or given justice in Arbitration proceedings which are still held open by MPL
• About 10 initial customers cancelled the bookings in the early stages of the project; MPL agreed to return their monies but later cheated them quoting lack of funds while selling the properties cancelled by the victims.
• The aggrieved customers filed for a windup petition (company petitions)
• The High Court has ordered MPL to either pay or windup
State Consumer Forum:
• About 66 victims approached the State Consumer commission who passed an Order dated 27-Apr-2012
• The State Commission cancelled the sale agreements, asked MPL to refund the amount with 12% SI (simple interest); it also awarded Rs.1 lac as compensation
• The State Commission passed strictures against banks, viz., SBI, ICICI, IDBI, Axis, Birla Home (First Blue) for colluding with MPL and cheating honest buyers
National Consumer Forum:
• MPL appealed to National Commission
• Birla Home, SBI & ICICI also appealed against the State Commission order saying they will recover all dues only from the hapless victims and they also outright refused to take action against MPL
• NCDRC passed strictures against these banks and dismissed the appeals vide Order dated 08-Jul-2013
• MPL appealed to the Supreme court with a Special Leave Petition (SLP) which was dismissed in the first batch of four cases
• MPL appealed against the 66 cases which were ultimately concluded by the National Commission which upheld the order passed by State Consumer Forum vide Order no.02-Dec-2013
• All victims then filed “Execution Petitions” back in the State Consumer Forum (By then AP State split into two and the Courts did not function for nearly 8 – 10 months due to the political division between Telangana & AP.
Role of banks:
• Some victims faced criminal proceedings from Banks who initiated recovery proceedings while happily letting MPL walk away with the money advanced to them in violation of banking norms.
• The victims of MPL have demanded that SFIO (CBI) should investigate the role played by the officials of Banks of SBI, ICICI, IDBI, Axis and First Blue for colluding with MPL in cheating hapless victims and their banks.
Other facts of the case:
• MPL has collected Rs.300 crores from customers. The banks had advanced another Rs.300 crores
• MPL started the project and then diverted Rs.200 crores to Satyam Computers; they then declared non-availability of funds as the reason for stopping the project.
• MPL made an out of court settlement of Rs.850 crores with JM Financial and SRS Orion purported to be benami companies owned by the Rajus of Satyam
• MPL has spent Rs.10 crores in legal battles while consistently refusing or delaying settlement of claims ordered by the courts.
• MPL owes about Rs.5 crores to the initial victims who filed company petitions.
• MPL owes about Rs.55 crores to the 66 litigants who have got orders from the National Commission
• IL&FS, the majority stakeholder of MPL, claims to be having Rs.3000 crores worth of value; Instead of settling the disputes legally and ethically, IL&FS dragged the cases and harassed the victims with the connivance of the banks
• CBI has charge-sheeted the Rajus only in Apr-2013 for cheating customers who bought into Maytas Hill County project; CBI never took action against the banks and their conniving officials.
• MPL (IL&FS) and all banks finally started paying back all advances, EMIs, etc. with interest and are closing the counts per Court orders in batches as of Dec-2016.
- By Sridhar N (firstname.lastname@example.org) in Jan’17 more