» History & Facts - Let the truth be told
There is a lot of incorrect information about Golden Forests India Limited in the media and the general public. Some of the rumours are a result of lack of accurate information while some rumours are created intentionally by persons with vested interests, who do not want this case to get solved. Thus we have created this brief section so that the truth can be told.
|1||Golden Forests India Limited has cheated public of thousands of crores of rupees.||Every single rupee invested in Golden Forests India Limited is safe and all the public money has been invested in buying prime properties all over India.|
|2||Golden Forests India Limited has done a scam of 4000 crores. The assets of the company are of less value as compared to the liability.||In its 13 years of working Golden Forests India Limited has paid back more than 1100 crores, as maturity, to its investors. Today the total outstanding of the company is less than 1500 crores (including 9 % interest) whereas the assets of the company are worth more than 10, 000 crores.|
|3||The management/directors of the company have swindled hundreds of crores of rupees.||The management/directors of Golden Forests India Limited have been investigated by the MONOPOLIES & RESTRICTIVE TRADE PRACTICES COMISSION, INCOME TAX DEPARTMENT and PUNJAB VIGILLANCE DEPARTMENT. In 12 years of investigation none of these investigating agencies could ever prove that even a single rupee of the company was ever swindled.|
|4||The directors of Golden Forests India Limited have taken the public money abroad.||Not a single rupee invested in Golden Forests India Limited has ever left India. All the public money has been carefully used to invest in property and create a land bank of more than 10,000 acres.|
|5||The properties of Golden Forests India Limited are located at far and remote places and these properties are not of much value.||All the major land parcels of Golden Forests India Limited are located near big cities of India on National Highways. They are all prime properties with very high value. The assets of G.F.I.L were evaluated at 1500 crores (under the supervision of the Hon'ble Bombay High Court) in 1998 & 5000 crores (under the supervision of the Hon'ble Supreme Court) in 2007. Today these assets are worth more than 10, 000 crores.|
|6||The company and its directors can easily pay the liability back but do not want to.||As per the orders of the Hon'ble Supreme Court of India only the committee appointed by the Hon'ble Supreme Court can deal with claims of the public and return of money. The directors/management of the company have no role in it.|
|7||The directors of the company were arrested after hundreds of cheques had bounced.||All the directors of Golden Forests India Limited were arrested from their homes on 24/12/2000. After the arrests the bank accounts were sealed. It was only then that the cheques were dishonoured. Till the date of arrest of the directors not a single cheque of Golden Forests India Limited had ever bounced anywhere in India.|
Golden Forests India Limited (G.F.I.L) was founded by Late Shri R.K.Syal in 1987 with a simple yet amazing concept "Economic Freedom For All". The company started its journey from Chandigarh with an aim to make all Indians a partner in the financial growth of India. Golden Forests India Limited was registered with the registrar of companies on the 6th of March 1987 and was given industrial code no.05 by the government of India. The company was permitted under the relevant laws of the day to take public investment and to offer a return on those investments. Every investment in the company was secured in the shape of land units which were allocated to each and every investor right from day one. In case of any lapse of maturity the investor had the right to get that land unit transferred in his/her name. This system of land units was so revolutionary that not only everybody understood it but also everybody trusted it. People from all walks of life, classes, cities and villages in India invested their hard earned money in Golden Forests India Limited.
Golden Forests India Limited used this money very wisely to buy prime properties all over the country. Most of the properties are situated close to big cities of India on National Highways. The location of these properties and the vision of Late Shri R.K.Syal ensured that the public's money invested in these projects was safe. Many projects such as mineral water plant, tourist resorts, hotels, schools, colleges and satellite townships were started. The asset base of Golden Forests Group of Companies today stands at over 10,000 acres of land and 50 commercial buildings all over India. (For more information please click on the following link)
In just 11 years of working (1987-1998) Golden Forests India Limited had earned the trust of the entire nation and had crossed a business of 1000 crores. It was the market leader of the agro forestry and N.B.F.C sector of India.
In 1998 Securities and Exchange Board of India (S.E.B.I) suddenly filed a writ petition in the Hon'ble Bombay High Court asking for a ban on the working of Golden Forests India Limited. S.E.B.I had argued in its petition that investments in G.F.I.L were not safe and that public investment was unsecured. During the course of this case the Hon'ble Bombay High Court looked at all the aspects of the working of G.F.I.L. The properties of Golden Forests India Limited were evaluated by Dr. Roshan.H.Namavati under the orders of the Hon'ble Bombay High Court. Dr. Namavati was one of the most reputed government appointed evaluator in India. He has written several books on evaluation and has worked on several high profile cases of evaluating properties all over the country.
Dr. Namavati himself visited each and every property of the company and spent several months in evaluating these properties. As per his evaluation the properties of Golden Forests India Limited were worth more than 1500 crores against the total liability of just 761 crores in the year 1998. In other words for every 1.00 invested in Golden Forests India Limited the company had a property of 2.10. After looking at this evaluation the Hon'ble Bombay High Court refused to ban the working of Golden Forests India Limited. G.F.I.L was permitted to take fresh investments under all the previous investment schemes and continue to work and pay maturity to its investors. The Hon'ble Bombay High Court however directed the company to get any new investment scheme/s approved from S.E.B.I before launching them.
On the morning of 24/12/2000 the Punjab Vigilance Bureau raided the homes of all the directors of G.F.I.L and arrested all the directors without any warrants. After unconstitutionally arresting all the directors the Punjab Vigilance Bureau registered 6 identical F.I.Rs in different parts of Punjab under Prevention of Corruption Act, 1988 and wrote to all major banks of India asking them to seal all the accounts of Golden Forests India Limited. As per the instructions of the Punjab Vigilance Bureau all the banks across India sealed the bank accounts of G.F.I.L. and because of this the cheques given by the company to the investors started to bounce. It is very important to mention here that till the date of arrest of the directors not even a single cheque issued by Golden Forests India Limited had bounced anywhere in India. Also the prevention of corruption act and the vigilance department are meant for government employees only. The Punjab Vigilance Bureau was unable to get a conviction in any of the cases registered by them, furthermore several F.I.Rs registered by the Punjab Vigilance Bureau were subsequently quashed by the Hon'ble Punjab and Haryana High Court.
On 18/06/03 the Hon'ble Punjab and Haryana High Court appointed a provisional liquidator for the purpose of sorting out the claims and liabilities of G.F.I.L. In the mean while the Hon'ble Bombay High Court had also appointed a receiver for the same purpose. Golden Forests India Limited then approached the Hon'ble Supreme Court of India in 2004 for the clarity of the matter that two Hon'ble high courts had appointed 2 different persons for the same matter and purpose. The Hon'ble Supreme Court of India in 2004 stayed all the appointments done by the Hon'ble high courts and appointed a new committee for the quick disposal of this matter. After more than 7 years of the committee's appointment the matter is still pending and is now being heard by the Hon'ble Delhi High Court.
The case of Golden Forests India Limited is a true example of the modern 21st century sloppy Indian system. A company which has over 10,000 acres of land worth more than 10, 000 crores against a liability of just 1500 crores has been forced to shut down all its operations. Several evaluations and surveys prove it beyond any doubt that the assets of the company are 5-6 times its liability. Ironically even after 12 years of litigations the end to this matter is nowhere in sight and 25 lakh people all over India are waiting for their money to be returned.
During these 12 years of court litigation this matter has been heard by the Hon'ble Bombay High Court, Hon'ble Punjab and Haryana High Court and even the Hon'ble Supreme Court of India and now it is subjudice in the Hon'ble Delhi High Court. The Hon'ble Supreme Court of India on 19/08/2004 had appointed a committee to solve this lengthy litigation. This committee is headed by Sh.R.N.Aggarwal (retired chief justice of Hon'ble Delhi High Court). As per the orders of the Hon'ble Supreme Court of India the committee was given two tasks-
- - To make a list of all the liabilities of Golden Forests India Limited, by inviting claims from the general public.
- - To take all the assets of Golden Forests India Limited in its possession and auction the assets to pay back the liabilities.
The committee was also requested by the Hon'ble Supreme Court of India to finish these tasks (as long as possible) in 6 months or as quickly as possible. In the year 2007 the advocate of the Hon'ble Committee stated in the Hon'ble Supreme Court of India that the assets of Golden Forests India Limited were worth more than 5000 Crores. Since 2007 property prices, all over India, have more than doubled hence the property of Golden Forests India Limited is today worth more than 10, 000 Crores. The total liability of all the companies of the Golden Forests Group is less than 1500 crores. 950 crores original invested amount & 400 crores interest (calculated @ 9% till the date of liquidation as per the Indian Companies Act 1956).The inclusion of 9% interest on the invested amount was proposed by Late Sh.R.K.Syal and has been approved by the Hon'ble Committee and the Hon'ble Supreme Court of India. As on today the Hon'ble Committee has sold several properties of Golden Forests India Limited and has collected over 300 crores from the sale. However several auctions have been cancelled and many auction proceedings are pending. When and how the money will be returned to all the investors who have been waiting patiently only the Hon'ble Committee can explain. (Contact Details of the committee Golden Forests India Limited # 60, sector 4 Chandigarh. Phone:01722740134).