CLB disposes Okara Agro depositors' application

FE NEWS SERVICE

Jan 7 : The Company Law Board has disposed off the application of Okara Agro depositors without any repayment order. In his final order, CLB member A K Doshi said, "As the high court is seized of the entire matter relating to the company, it would not be proper for me to consider any scheme of repayment of deposits as proposed by the company." Okara Agro had been booked under Section 58 A of the Companies Act by CLB for default. While the teak scheme of the company was not taken for consideration by CLB under the acceptance of deposits rules, the money multiplier scheme was considered for repayment. Regarding the disposal of application under the Teak scheme, CLB said the amount invested was for purchase of properties in the form of teak trees and, therefore, had to be excluded from the defination of deposits.

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