Jeweller brothers file insolvency petition

COIMBATORE: The two absconding jeweler brothers have filed an insolvency petition before the first additional sub-ordinate court here on June 8, claiming their total liability to be RS136.36cr. They have declared assets worth Rs79.35cr which they claim they will hand over to the court. They have stated in their petition that the business suffered huge losses due to the sudden dip in gold prices.They have also filed an interlocutory relief petition before the court to prevent their arrest.
N Ashok Kumar and his brother N Balaji are owners of Lavanya Jewellery and Bangaru Jeweler Private Limited, both businesses situated on Big Bazaar Street in the city, Subalavanya Jewels Craft Private Limited on Bharathi road in Telungupalayam and Swarnalakshmi Jewellery at Lakshmi complex situated on Cross Cut Road. All the four businesses were registered under Companies Act. They were also co-owners of Lavanya jewels at Tatabad and Lavanya jewel exports on Big Bazaar Street. They used to buy gold bars from various bullion businessmen in the city to make gold ornaments.
Recently, the duo went underground, along with their respective families, taking with them all the valuables from the shops they owned. The city police have formed two special teams, under Kattoor police (crime) inspector P Periasamy which are camping at Goa and Mumbai, hoping to trace their whereabouts.
Meanwhile, the duo has filed an insolvency petition (IP) before first additional sub-ordinate court here on June 8. Advocate K S Anand filed the petition before sub-judge Ramaparthiban, on their behalf.
The duo claimed in the petition that they had borrowed crores of rupees from usurious money lenders to run their business. They had also taken loans amounting to Rs60cr from SBI branch situated on Trichy Road, Rs12cr from Indian Overseas Bank branch on Cross Cut Road and Rs5cr from Corporation Bank. But they were unable to repay loans due to huge losses in the business.
The duo claimed a total liability of Rs136.36cr and declared movable and immovable assets worth Rs79.35cr (the evaluation of assets was done four years ago). They said they are ready to submit all asset details before the court. "We have listed 15 immovable assets in the petition. The court will decide," said lawyer Anand. The duo has filed interlocutory relief petition before the same court and requested the court to order the police not arrest them. "The file petition will come for hearing on June 21," Anand added.
"We have received 538 complaints from victims who were members of the gold accumulation schemes offered by their jewellery shops. We will arrest the absconding brothers soon," said K Sugumaran, deputy commissioner of police (crime).