Company moves Madras high court against conduct of GIM 2019

The  Madras high courton 11/01/19 refused to admit a plea moved by a private company seeking to stay the conduct of the Global Investors Meet (GIM) 2019 in Chennai till the government frames guidelines for participation.

Cascade Energy Pvt Limited, a Singapore-based company, wanted the court to direct the state to frame guidelines to protect the foreign investors from getting cheated by the tainted companies in the interest of the nation.

Senior counsel S Prabakaran said the petitioner company had been cheated to the tune of Rs 33 crore after it had invested in an Indian company called Zynergy Solar Projects and Services Private Limited.

The petitioner company purchased 51% of equity shares belonging to Zynergy Solar Projects and Services Private Limited believing the words of returns towards the investment and did not receive any returns for the investments made by the petitioner. The petitioner found no developments towards investments. The money invested in the said company were not utilised for the purpose for which the same has been invested. But it was able to understand the funds which were invested in the said company had been misused and transferred with mala fide intention into various shell companies for personal gains, Prabakaran added.

Claiming that such companies are utilising GIM as a platform for committing such fraud on foreign companies, senior counsel P Wilson submitted that it was not against the meet but only wanted the government to frame appropriate guidelines to protect the interest of investors, particularly from foreign nations.

"The name and fame of Tamil Nadu is under serious threat. When foreign companies wanted to invest in the state, the government must bring in at least basic guidelines to protect them. Many companies which are in insolvency and bankruptcy proceedings are allowed to participate in the event," Wilson added.

Wondering why the petitioner has not added such fraudulent company as party respondent to the plea, a division bench of M Sathyanarayanan and P Rajamanickam refused to admit the plea. “Implead them as party respondents so that we could consider the plea on January 18,” the bench said.