The Delhi High Court, on February 14, appointed the official liquidator of the Delhi High court as the Provisional Liquidator for M/s. Schematic Finance Ltd. with immediate effect. The Provisional Liquidator will immediately take charge of the company’s properties, assets, books of accounts, papers, vouchers and other documents. In the company application filed simultaneously by the Reserve Bank, the Hon’ble Justice has ordered for an ex-parte interim order restraining the company, its servants, agents and assigns from encumbering, transferring, alienating and disposing of any of the properties and assets of the company.

The court order came in the wake of the Reserve Bank, in May 2000, filing a criminal complaint against the company and its promoter director when the company failed to repay the depositors even after the Company Law Board had rescheduled the repayment. The Reserve Bank of India had also filed a winding up petition against M/s. Schematic Finance Ltd. The petition was filed against the company in Delhi High Court under Section 45 MC of the Reserve Bank of India Act, 1934.