Press Esc to close
Sunday 29 March 2015
News updated at 3:29 AM IST
Weather
Max: 34.5°C
Min : 19.9°C
In Bengaluru
Sunny day

Promise of high interest rates on FDs put JVG on a faster orbit

New Delhi, Vishnu Sukumaran, May 14, 2013, DHNS:

Meteoric rise

Major chunk of JVG group’s turnover was created from fixed deposits received from public following aggressive advertising offering high interest rates of up to 30 per cent in early 90s.

Ravindra Yadav, additional commissioner of police (crime and railways), said investors flocked to buy the group’s schemes and the deposit base soon crossed Rs 1,000 crore.

“The group’s turnover increased from Rs 102 crore in 1994-95 to Rs 700 crore in 1995-96. Then chairman and managing director, Vijay Kumar Sharma, had plans for expanding the group to a Rs 12,000 crore empire by 2000,” Yadav said.

Vijay’s father was a teacher, but he gave up studies in class 11. He started his career as a building materials supplier in 1979, and launched his first company, JVG, in September, 1989. He started real estate business by developing JVG Enclave on Noida-Dadri Road, which was later declared unauthorised by the Uttar Pradesh government.

He went onto launchingJVG Finance and developed Chaudhary Charan Singh Awas Yojna in UP’s Bagpat district of UP. In 1992, he opened an office in Patna and developed Jai Prakash Yojna. Vijay planned to set up mega townships in Gurgaon, Patna, Mumbai and Hyderabad, and acquired hotel and cement interests of Delhi-based Jaiprakash Industries, steel units of Rathi Alloys and aircrafts of ModiLuft.

“Vijay earned a lot of money during this phase and purchased Appu Ghar in Meerut. Subsequently, he asked for fixed deposits from public by offering high interest rates and opened several branches of the company all over India,” Yadav added. He went onto launching JVG Times newspaper and afternoon tabloid Sandhya Times in Delhi and JVG Sandhya Prahari in Patna. After this, he launched JVG Departmental and opened stores in Chandigarh, Kurukshetra, Delhi, Patna, Varanasi and Ranchi.

Vijay had announced that he would invest over Rs 4,000 crore in diverse areas such as power, cement, hotels, steel, textiles and aviation.

“Over the next few years, the group brought over 3,000 small firms. Vijay also launched JVG Steels, JVG Departmental Stores, JVG Foods, JVG Petrochemicals and many other companies,” Yadav said.

The group’s trouble started in June, 1997, after the SEBI asked JVG Finance to refund Rs 45 crore it raised from a public issue in March, 1997.


Go to Top

Photo Gallery
Brand ambassador Pranitha subhash at Jewels exotica Akshaya Tritiya jewellery shopping...

Brand ambassador Pranitha subhash at Jewels exotica Akshaya Tritiya jewellery shopping...

Bollywood actor Katrina Kaif with her wax model at Madame Tussauds in London...

Bollywood actor Katrina Kaif with her wax model at Madame Tussauds in London...

Models at a fashion show at IIFT in Bengaluru on Friday night...

Models at a fashion show at IIFT in Bengaluru on Friday night...

People watch the PSLV-C27 take off carrying India's fourth navigational satellite in Sriharikota...

People watch the PSLV-C27 take off carrying India's fourth navigational satellite in Sriharikota...

A view of Vidhan Soudha which was powered off during the Earth hour in Bangalore...

A view of Vidhan Soudha which was powered off during the Earth hour in Bangalore...

Security persons recover articles after an encounter with the Maoists in Latehar...

Security persons recover articles after an encounter with the Maoists in Latehar...

Dancers perform during  procession to mark the Hindu festival of Ram Navami in New Delhi

Dancers perform during procession to mark the Hindu festival of Ram Navami in New Delhi

Youths participate in a rally during Northeast NSS Festival in Agartala on Saturday...

Youths participate in a rally during Northeast NSS Festival in Agartala on Saturday...

Artists dressed as Hindu gods on the occasion of Rama Navami festival in Bengaluru on Saturday...

Artists dressed as Hindu gods on the occasion of Rama Navami festival in Bengaluru on Saturday...

Artists performing ballet 'Durga Saptashati' in Bhopal on Friday evening...

Artists performing ballet 'Durga Saptashati' in Bhopal on Friday evening...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523