SADHU RAM GUPTA Vs. GOLDEN FORESTS INDIA LTD

JUDGEMENT

(1.) THE company Golden Forests (India) Ltd. (GFIL) was incorporated in the year 1987 and its subsidiary companies Golden Tourist Resorts and Developers Ltd. and Golden Projects Ltd. were incorporated in the year 1991 and 1996 respectively. GFIL and its subsidiary and associate companies floated a number of schemes and they successfully collected large sums of money from the public with effect from the year 1991 onwards. THE Syal family comprising of Late Sh. Amrit Lal Syal, his son Late Sh. R.K. Syal, his daughter Ms. Pamila Syal and their other family members were solely managing the affairs of the Golden Group of Companies. Late Sh. R.K. Syal was the Managing Director of the GFIL and Ms. Pamila Syal was the Managing Director of Golden Projects Ltd. Late Sh. Amrit Lal Syal was the Legal Advisor and also holding other important positions in the company.

(2.) GFIL and its other subsidiary and associate companies ran into rough weather in the year 1998 and criminal investigation, income tax investigation and an inquiry by the Securities and Exchange Board of India (SEBI) were initiated against the said companies. GFIL and Golden Projects Ltd. were collecting large investments through the various schemes introduced by them, from public all over India. So much so, that in the years 1996 and 1997, they collected hundreds of crores of rupees. The companies were issuing post-dated maturity cheques to the investors. The companies from the year 1999 onwards started defaulting in payment and finally in the year 2000, the companies shut their business. Late Sh. Amrit Lal Syal, Late Sh. R.K. Syal, Late Mrs. Neena Syal (Wife of Late Sh. R.K. Syal), Ms. Pamila Syal (sister of Late Sh. R.K. Syal) were arrested on 24.12.2000.

(3.) THE Supreme Court subsequently appointed this Court to supervise the functioning of the GFC aforesaid.