Vini Vinc Shastry offers land to repay investors

Vini Vinc Shastry offers land to repay investors

Karnataka government submitted an assessment report of the properties – 31 acres in Ekarajapur, Hoskote and 43,600 sq ft (49 plots) at Yelahanka – which could fetch about Rs 56 crore.

These properties were seized by the State authorities after Shastry was arrested for the alleged fraud.

A bench headed by Dalveer Bhandari said, ‘’We grant permission to the State government to sell the properties to raise money.’’

Status report sought
After fixing November 3, as next date of hearing, the court asked the State government to file a status report in four weeks.
Karnataka government advocate Sanjay Hegde said that these lands have been assessed by a professional organisation.

When Hegde requested the court to issue direction to Shastry to pay some amount in cash, advocate U U Lalit appearing for the accused said that he had no money, and that he was finding it difficult to manage even his family.
On July 13, the Apex Court had granted interim bail to Shastry, after he gave assurance to the court that he would repay the investors.

High rate of interest
Shastry had set up Vini Vinc in the early part of this decade and had allegedly swindled
Rs 203 crore from the investors, with the promise to pay back 10 percent interest per month.

The State police had filed charge sheet against Shastry and 19 others on August 8, 2008 before the IV Additional Chief Metropolitan Magistrate.
The investigation revealed cash transactions of over Rs 203 crore by the ViniVinc promoter Shastry. At least 20,184 people had invested about Rs 203,63,41,950 in the investment firm.