HC refuses to release share certificates of blacklisted PLS Group

New Delhi, Aug 16 (UNI) The Delhi High Court has refused to release the share certificates of various companies worth more than Rs 40 crore to the Chairman-cum-Managing Director of the PLS Group of Companies, who is being prosecuted by the CBI for allegedly cheating more than 2 lakh investors.

Justice S N Agrawal rejected the petition of Madan Lal Srivastava, the Chairman-cum-Managing Director PLS Group, who had prayed for release of the share certificates from the possession of the CBI.

''The CBI has submitted that the transfer of shares in question was stopped by the investigating agency to protect the interest of the bonafide investors, who were allegedly cheated by the companies owned by the petitioner,'' said the order.

The criminal cases instituted against the petitioner and his companies were pending trial before the District court in Delhi and the share certificates were in the possession of the CBI, said the court.

The shares of other companies were bought by Srivastava and other promoters with the money collected from the public, the CBI Counsel said quoting the investigation report.

Srivastava had floated PLS Technicals Ltd, PLS Technicals Pvt Ltd, Shreejee Capital Management Ltd, PLS Mutual Benefit Ltd, ZED Investment Ltd, Bristol Finance Ltd and PLS Softect Ltd in the mid-1990s.

On July 14, 2000, the CBI informed the SEBI about the case against the group of companies to initiate action against the promoters under the provisions of the SEBI Act and other relevant laws, submitted the CBI Counsel opposing the release of the share certificates.

The group had also floated public issue on September 3, 1996 of Rs 10 each and collected Rs 20 crore from the public.

All the companies dealing with finance business, had lured the public to make investment with a high return of 36 per cent and had issued post-dated cheques.

The post-dated cheques given to the investors bounced when presented for encashment, said the CBI.

Srivastava and other promoters absconded for more than one and a half years, when the CBI instituted a probe after receiving complaints from the investors.

UNI PAT LS HS1557