Everyone will remember the trouble that many people — largely belonging to the middle income group — holding deposits with non-banking financial companies, faced a few years ago. In fact, its repercussions are being felt even today. Lured by the exorbitant interests offered, the public invested in these companies, and there was pandemonium when, unable to sustain, many of the said companies were compelled to close shop. Later, of course, the strengthening of the regulations in this regard by the Reserve Bank of India helped streamline the sector.
When a company is ordered for winding up, the Official Liquidator attached to the High Court takes possession of the company's assets and books of accounts. His primary function would be to take care of the assets of the companies under liquidation, their sale and realisation of all debts for distributing them amongst the creditors and dissolving such companies after their affairs are fully concluded.
Though it is understood that there could be procedural delays in this process, indefinite and undue delays in settling the creditors is inexplicable. In this relation, recently, an 85-year-old person approached us for assistance. He had a fixed deposit with a Kolkata-based finance company, and the deposit matured way back in 1998. The principal and the interest summed up to Rs. 12,000, and he submitted his original receipt for repayment. Soon after, he came to know that the company was wound up, and after constant representations to the Office of the Official Liquidator, High Court, Calcutta, he received a communication in 2004 asking him to submit all the relevant papers along with an affidavit affirming the proof of debt. He did the same at once, but he is yet to hear about further action taken. His letters to the Official Liquidator's Office has evinced no response, and the old man is aggrieved and unsure if he is likely to get the money back before his time.
Apart from the delay in distributing the claim amount, the main issue here is the lack of correspondence. Despite years of repeated efforts to acquire details, the indifference shown by the offices concerned increases insecurity in the common man. Unfortunately, this unhealthy practice is persistently followed by almost all departments. For instance, when one applies for a ration card or voter ID, he is not aware of when he is likely to get the card, and is made to run from pillar to post with no tangible outcome. It is rare to find someone in the office who would give a responsible answer without being rude.
It is vital for all offices, particularly for those directly interacting with consumers, to have qualified and trained personnel who can guide customers properly, and it is also about time the authorities realised that a line in acknowledgment could do wonders.
(The writer works with CAG, which offers free advice on consumer complaints to its members. For membership details / queries contact 2491 4358 / 2446 0387 or helpdesk@cag.org.in)
