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Get credit rated or face attachment: HC warns 592 agro-forestry firms

The Delhi high court on Thursday warned the 592 agro-forestry companies, which have allegedly cheated investors of millions of rupees, to either get credit rated from SEBI-approved credit rating companies within three weeks or face attachment of their properties.

A division bench comprising Justice Anil Dev Singh and Justice Mukul Mudgal asked the companies to comply with the October 7 order of the court within three weeks, failing which contempt proceedings would be initiated against them.

The matter has been listed for further hearing on December 1.

The judges said so far as credit rating was concerned, the respondent companies should submit the requisite fee with the recognised credit rating companies and comply with any other formalities which the credit companies can ask for.

The bench also directed all credit rating agencies to be present in the court on the next date of hearing.

The court had on October 9 directed that the plantations/collective investment scheme companies or agro companies shall get themselves credit rated from a recognised credit rating companies and should be approved by the Securities and Exchange Board of India.

The court was hearing a petition filed by president of the Forum of Investors of Agro-forestry Companies of India S D Bhattacharya who alleged that the agro-forestry companies were cheating the investors in connivance with the SEBI officials.

UNI