Rescue act

I have a fixed deposit of Rs 20,000 in the Senior Citizen Saving Scheme 2004 at a nine per cent rate of interest. I invested the amount on February 4, 2005, with the State Bank of India, City Centre branch, Durgapur 16. As I was going through a financial crisis, I wanted to prematurely withdraw this amount or else take a loan considering this amount as collateral as that can be done in the case of fixed deposits in banks. But the bank authorities have refused to help as this savings scheme is under the central government. I am an octogenarian and I don’t know want to do. Can you guide me?

Rabindra Nath Bhattacharjee, 6/16 Jibanananda Das Path, City Centre, Durgapur-713216

The expert: As per Reserve Bank rules, a bank is usually under an obligation to pay a premature encashment amount to its consumer in cases where the interest amount is low. Since the complainant is in urgent need of money, he may approach the bank stating in detail the Reserve Bank rules. If the bank fails to provide that money to the complainant, the complainant can very well initiate a proceeding before the consumer forum alleging deficiency in service on the part of the bank. In that case, the complainant can claim compensation from the bank for such uncalled-for hassles and motivated harassment.

Insurance woes

I paid my quarterly premium against my life insurance policy (of Life Insurance Corporation of India) bearing policy nos. 542290177, 540403857 and 540400170 in September 2005 at the Dhanbad Branch-I through a cheque issued against my S.B. A/c No. 2281 of United Bank of India, Branch (Dhanbad). After a month, L.I.C.I. wrote back saying that my cheque had been dishonoured for insufficient funds. On enquiry at my bank, I learned that I had sufficient funds in my account and that the cheque was never presented to the branch for clearance.

Accordingly, I wrote a letter to the L.I.C.I. authorities, requesting them to present the cheque to my bank. But they did not pay any heed to my request and compelled me to pay the premium in cash along with fines and bank charges.

Indrajit Ganguly, Post Office-Bhowra, Dhanbad-828302

Cheated

I deposited Rs 10,000 with Nicco UCO Alliance Credit Ltd to get a quarterly interest payment at the rate of 14 per cent per annum. The names of UCO Bank and the “High safety rating IND AA+” stamp of Duff and Phelps prompted me to deposit the amount in good faith. I had no idea that that these highly esteemed organisations would join hands to unfairly destroy middle-class housewives like me, both financially and mentally, by stopping the interest payment and deferring the payment of the principal amount. Such dubious activities are conducted with the indirect consent of the Company Law Board (CLB) as it allows the companies to hold ex-parte hearings, without sending any notice to the depositors and then arbitrarily stop the payments of fixed deposit holders. The CLB’s order no. CLB/ERB/CAL12 (02)/2004, dated March 22, 2005, has allowed Nicco UCO to defer payments in my case. The government of India is also a silent spectator in such ex-parte hearings. Is there a way out of this miserable situation through the consumer court? I am 68 years old. Is there any chance of getting back my money soon?

Uma Roy, E-3/2, Karunamoyee Housing Estate, Salt Lake, Calcutta-700091

The expert: From the allegations of the complainant, it appears that upon taking an ex-parte order from the Company Law Board for making payment to the consumers who deposited the money in fixed deposits, under a scheme of deferred payment, the company has not taken any steps to comply with the order of the CLB. Under the circumstances, it would be wise to place the matter before the CLB for early relief and redress. It appears that the matters in dispute before the CLB are usually not entertained by the Consumer Forum since the Forum does not wish to intervene in matters where the question of parallel proceedings before the CLB and the Consumer Forum may come into play.

In a fix

I had invested in six fixed deposits in the names of my family members in Alpic Finance Ltd, 6 th floor, New Excelsior Building, Wallace Street, Fort, Mumbai 400001. The fixed deposits were converted to Alpic Festive Bonds by the company on August 2, 2000, without my consent. On maturity, all the bonds were deposited at the Calcutta office of the company (190/1, R.B. Avenue, Calcutta 700029). After that there was no response from the company regarding payment of the maturity amount.

On enquiring at the Mumbai office of the company, I learned that the company went into liquidation on August 2, 2002, and any claim for payment was to be lodged with the Official Liquidator, Mumbai High Court, Bank of India Building, M.G. Road, Mumbai-23.

I deposited all supporting papers ? copies of the Bonds, deposit receipts along with the prescribed form duly attested and signed by a magistrate of Mumbai at the liquidator’s office on March 31, 2003. My claim was classified as that of an ‘Ordinary Creditor’. When shall I get my money?

Amitava Ghosh, 48/21/1, Swiss Park, Calcutta-700033

The expert: From the complaint it appears that the complainant has already approached the Official Liquidator and has submitted the necessary documents. So now he needs to adopt a wait-and- watch policy.