At the meeting, the company’s advocate Nirmala Bhosle tried to calm investors and presented a proposal to return their principal along with 7% interest-a fraction of the 48% originally promised. Investors would receive this amount via 12 post-dated cheques three months from now, according to the proposal.
Some investors were amenable to this but others, like Zulfiqar Khan from Chennai, insisted that payments already received as interest not be adjusted against the principal. Many investors supported him but the company did not agree.
Another investor suggested the company immediately pay the principal without interest, but the firm vetoed the idea. Some investors demanded a guarantee that the post-dated cheques wouldn’t bounce, to which the firm agreed. The company has to submit a report on the meeting’s outcome to the high court.
Bhosle blamed the Economic Offences Wing of the city police and Enforcement Directorate for the crisis. The two agencies said the company was trying to pass the buck for its own mistakes.
Investors who had been asked to assemble at Wilson Gymkhana, Chowpatty turned up only to be redirected to Wilson School four kilometres away. The venue could not accommodate the attendees.
A leading advocate said, "There should have been a register of investors who attended. Or they should send their representative with a signed proxy form. The minutes of the meeting should be properly recorded, " he said.
Senior inspector of V P Road police station V Patil cancelled the two other meetings planned by the company. saying they were illegal. "This is no way to hold a meeting for an important discussion. The company still hasn’t cleared our doubts, " said investor Sneha Kokate angrily.