Chennai EOW files FIR against arms of Franklin Templeton

By: |
September 27, 2020 7:30 AM

The FIR has named Santosh Das Kamath, MD and chief investment officer, FTAMIL; Sanjay V Sapre, whole-time member, FTAMIL; their directors Jayaram Subramaniam Iyer, Vivek Kudva, RV Subramaniam and Pradip P Shah, among others.

According to CFMA, a larger number of investors have dragged Franklin Templeton in court demanding refund of their investments.According to CFMA, a larger number of investors have dragged Franklin Templeton in court demanding refund of their investments.

The Economic Offences Wing (EOW) of Chennai police has registered a first information report (FIR) against Franklin Templeton Asset Management India (FTAMIL) and Franklin Templeton Trustee Services (FTTSPL) and their top management personnels, in a case related to the alleged criminal conspiracy to defraud three lakh investors by causing wrongful losses to them. Unlawful gains were made by these units. Various offences under the IPC have been allegedly committed by them.

The EOW registered the FIR after investigating a complaint filed by the Chennai Financial Markets & Accountability (CFMA), the investors’ group, and few others, in May this year.

The investors’ group has been fighting for millions of aggrieved investors of Franklin Templeton whose over Rs 28,000 crore is stuck because the fund house abruptly closed down its six debt schemes in April.

The FIR has named Santosh Das Kamath, MD and chief investment officer, FTAMIL; Sanjay V Sapre, whole-time member, FTAMIL; their directors Jayaram Subramaniam Iyer, Vivek Kudva, RV Subramaniam and Pradip P Shah, among others.

According to CFMA, a larger number of investors have dragged Franklin Templeton in court demanding refund of their investments.

Investors all over the country are now demanding a cash back especially when Franklin Templeton recently claimed that two of the funds, Franklin India Low Duration Fund and Franklin India Credit Risk Fund turned cash-positive on August 31. Since then, the six schemes have received over Rs 6,486 crore, it said.

The group is also contemplating filing a class action suit against Franklin Templeton global for recovery and to claim damages, the details of which will be announced soon. It has demanded that Sebi must declare the FTAMIL and its KMP ‘not fit and proper’.

The Madras High Court had in May this year issued notice to market regulator Sebi and the company officials in a public interest litigation (PIL) filed by CFMA, which moved the court seeking to safeguard nearly `28,000 crore of investors’ money stuck in six schemes closed down by Franklin Templeton Mutual Fund.

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