Feb 21, 2010 11:30 AM
8894 Views
My father had invested his hard earned pf savings in morepen fixed deposit in 2002 - 2003 post retirement after serving the country in Indian air-force for 36-long years.
Today, he is a dejected man and feels cheated by the ruling of the Honorable high court of himachal pradesh according to which morepen has been empowered to waive-off 25% of his principal amount (invested during 2002-2003) and the entire interest accumulated for last 7-8 years.The company has also resorted to the most investor-unfriendly scheme of issuing shares for the remaining 75% of his principal investment amount at rs. 11.32 when the average market rate of the scrip for last 1-year may not be more than Rs.7.
The entire ruling process shows several lacunae in the system to let go of such corporate offenders scot-free.
What has he got after 7-8 years of trusting morepen with his career savings?
No interest for 7-8 years on the principal amount invested
25% of his principal amount taken away by morepen
Arbitrarily high rate per share charged for converting the remaining 75% of his principal amount invested into equity shares
Future of these shares are almost "zero" because of bad corporate reputation which will soon hit the mass media.
Every investor [big/ small] should be aware about this and never trust this company in future.
