Friday 18 April 2014
News updated at 1:13 PM IST
Weather
Max: 34.6°C
Min : 22.1°C
In Bangalore
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
Britain's Catherine (2nd R), Duchess of Cambridge, strokes Fred the ram as her husband Prince...

Britain's Catherine (2nd R), Duchess of Cambridge, strokes Fred the ram as her husband Prince...

An anti-government protester throws a molotov cocktail at the Bolivarian National Police during...

An anti-government protester throws a molotov cocktail at the Bolivarian National Police during...

A Soleil supercar is seen during a press event at the Jacob Javits Convention Center during the...

A Soleil supercar is seen during a press event at the Jacob Javits Convention Center during the...

Toronto Mayor Rob Ford bobble heads are on display for sale as Ford launches his re-election...

Toronto Mayor Rob Ford bobble heads are on display for sale as Ford launches his re-election...

A Buddhist monk prays for missing passengers who were on the South Korean ferry 'Sewol' which...

A Buddhist monk prays for missing passengers who were on the South Korean ferry 'Sewol' which...

U.S. first lady Michelle Obama obliges cheering students by showing off the hand signal the...

U.S. first lady Michelle Obama obliges cheering students by showing off the hand signal the...

A FedEx truck drives past a makeshift memorial, set up in memory of those who died last week when...

A FedEx truck drives past a makeshift memorial, set up in memory of those who died last week when...

A Koenigsegg supercar is seen during a press event at the Jacob Javits Convention Center during...

A Koenigsegg supercar is seen during a press event at the Jacob Javits Convention Center during...

Former U.S. Secretary of State Hillary Clinton participates in A No Ceilings Conversation at...

Former U.S. Secretary of State Hillary Clinton participates in A No Ceilings Conversation at...

A man carries a flower wreath while passing through a line of police officers outside the funeral...

A man carries a flower wreath while passing through a line of police officers outside the funeral...

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