Admitting a temporary liquidity problem which has resulted in a mismatch of Rs 10 crore, Natesan said the group was identifying financial partners to bring in the required money on the security of lands owned by Anubhav Plantations Ltd. Anubhav plantations, he said, owns 3,000 acres of surplus land apart from those owned by investors. Efforts are also on to raise bank finance, he added.

The group will cut some teak trees in December and realise around Rs 100 crore, he said, adding This will more than enough to meet its immediate liabilities. The group is asking its investors to postpone their commitments till January1999. Efforts are being made to pay those who are in need of money. According to Natesan, nearly 60 per cent of the investors are willing to wait till January. The investors under the Goodearth Scheme are said to be most affected.

Blaming the Securities & Exchange Board of India (SEBI) and rating agencies for his problems, Natesan said a company which has been doing business for the past four years cannot be asked to close shop overnight. He was referring to SEBI's demand that plantation companies should go for compulsory rating and accept deposits only if they get investment grade rating and rating agencies' uniform approach of not giving investment grade rating to any plantation company.

With no external sources of revenues (meaning fresh deposits) to repay existing deposits, Natesan said the group was dependent on internal accruals and hence the problem. Anubhav Plantation is at present not accepting any deposits. It has a deposit base of Rs 100 crore.