Pincon Spirit Refund News

Pincon Spirit Chit Fund Case: Committee has requested investors to furnish the necessary documents to initiate the refund process

Set up in 1978, Pincon Spirit Ltd. is a West Bengal-based company, which manufactures alcohol. It has come to notice that from April 2012 to March 2015, Pincon Spirit has offered and allotted secured redeemable non-convertible debentures (NCDs), to 4256 people worth Rs. 40.60 crores through LRN “prima facie”.

Since the offer and allotment of NCDs was a public issue, it was supposed to be dealt with on a stock exchange, which the company failed to do. The firm did not even register the prospectus with the Registrar of Companies (ROC). The company had solicited money in crores from thousands of innocent investors to further invest in the liquor business. The accused had also set up multiple shell companies such as LRN Finance, Bengal Pincon Housing Infra Ltd, ASK Financial Services, and more to solicit money collected from various investors.

In July 2018, capital markets regulator SEBI prohibited Pincon Group of Companies and its 12 present and former directors from the securities market for raising money illegally from investors.  

To look further into the matter, one man committee was formed in 2016, which is headed by Retd. Justice S.P Talukdar. The committee invites online applications from the depositors (investors) of the MPS group of companies for the refund of money. After the investigation of the matter, the committee authorized the regulator to auction the company’s assets. After the completion of the sale of both movable and immovable properties and identifying investors, the committee will then disburse the amount to the depositors.

According to the latest information from various sources, the Directorate of Economic Offences (DEO), Kolkata has already initiated the refund process for investors and debenture holders. The committee has also requested investors, secured creditors, and other affected parties to furnish the necessary documents with regards to their investment, for refund. For more information visit the official website of the Justice S.P. Talukdar Committee at https://justicesptalukdarcommittee.com/.

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