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'Amrit' turns poison for gullible investors

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  6 March 2016 12:00 AM GMT

After raising Rs 300 cr, firm closes shop in Assam

By Our Staff Reporter

Guwahati, March 5: A firm, Amrit Projects NE Ltd, which had tied up with the State government to build a 10 MW biomass-based power plant at Morigaon in 2007, is under attack from investors, who say they have not been paid the maturity amounts since the last two years.

According to the Amrit MR & Investors Protection Society, the company has raised more than Rs 300 crore from gullible investors in Assam.

"Surprisingly, the company stopped paying maturity amounts to the people since 2013 and has abruptly closed down all its branch offices in the State," the investors, who staged a demonstration in the city today, alleged.

They said some of their members had even met the CMD of the company KC Dujari at Kolkata, but he has been "indifferent" to their grievances.

The protestors submitted a memorandum to the Chief Minister, seeking a CBI inquiry into the "fraud" and his intervention in getting back the investors' money.

The foundation stone of the 10 MW biomass-based power plant at Jagiroad in Morigaon - which was to be executed by Amrit Bio-Energy & Industries Limited - was laid by the Chief Minister himself, in presence of the then State Power minister Pradyut Bordoloi on November 21, 2007. The project was also mentioned in the Congress' manifesto in the 2011 assembly elections.

Investors now allege that the company has abandoned the project.

In August, 2014, capital market regulator SEBI had restricted the company from raising funds via issuance of securities. The regulator also barred the company and their directors from accessing stock markets.

SEBI observed that the company issued shares to over 50 persons, which under the rules made it a public issue of securities and hence would require compulsory listing on a recognised stock exchange, among other requirements. In the order against Amrit Projects, SEBI's initial probe found that the company had mobilised funds amounting to about Rs 10.38 crore during the fincial years 2009-10, 2010-11, 2011-12 and 2012-13.

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