More trouble erupted for the Durgapur based Axes Multi-Developers Ltd as Calcutta High Court rebuked the company yesterday (18 September) and fined it for “wasting” the court’s valuable time.
Justice Sanjib Banerjee of Calcutta High Court directed Axes Multi-Developers Ltd, the funds mobilising company from Durgapur to pay compensation of Rs 1 lakh each to the Durgapur police, Sebi and the registrar of companies for wasting the court’s time.
One of the directors of the Axes Multi-Developers Ltd, Kalyan Sarkar, had moved the court in August alleging that the firm’s office had been vandalised by people. Sarkar had sought a court order directing the police to arrest those involved in the attack.
Justice Banerjee had earlier asked Sebi (Stock Exchange Board of India) and the registrar of companies for status reports on the activities of the company.
Lawyers appearing on behalf of Sebi and the registrar of companies told the court yesterday that their reports had listed complaints of financial irregularities against Axes.
Sebi said that although the company was a non-banking financial institution, it had not taken the watchdog’s permission before collecting deposits, which is a mandatory step for any kind of financial collection.
Durgapur police had informed the court that the office had been attacked by investors whom Axes could not repay.
It may be recalled that following a court complain by Andal resident Ajit Das on 29th April 2013, ACJM of Durgapur Court directed the police to investigating charges of cheating and fraudulent activities against Axes Group.
Immediately after getting the court directives, Durgapur police on 29th night raided the resident of one of its director, Katyayan Bhattacharyya, but Bhattacharyya managed to flee along with the other two directors. Police then raided the City Centre office of Axes the very next day and seized several important documents related to company’s activity.
In two phases Durgapur police arrested ten Axes group officials and interrogating them came to know that Axes Multi Developers Ltd., which started as a real estate company of Durgapur, in last two to three years diversified into media, resort, hotel business and mobilizing funds. The interrogating team said that the company is reported to have collected around Rs 50 crore in the past six years on the false promise allotting plots.
Two of the three absconding directors of Axes Multi Developers of Durgapur surrendered in Durgapur court on 21 July after Durgapur court judge asked the directors to surrender immediately, and even ordered that if the directors fail to appear before the court, their assets will be seized.