https://www.taxtmi.com/caselaws?id=105055 Persistent default in repayment of matured public deposits by an NBFC, coupled with diversion of funds and asset holdings in the names of the company and its promoters, was treated as a serious fraud on depositors. The Court held that criminal prosecution alone would not secure restitution and applied the principle that the corporate veil may be lifted where the corporate form is used to perpetrate illegality. It therefore cancelled interim police protection and directed constitution of a special cell, CBCID investigation, seizure and preservation of properties, restraint on alienation, and initiation of winding up proceedings to protect depositors and facilitate recovery. en-us Mon, 13 Dec 1999 00:00:00 +0530 Fri, 02 Mar 2012 13:02:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=105055 Persistent default in repayment of matured public deposits by an NBFC, coupled with diversion of funds and asset holdings in the names of the company and its promoters, was treated as a serious fraud on depositors. The Court held that criminal prosecution alone would not secure restitution and applied the principle that the corporate veil may be lifted where the corporate form is used to perpetrate illegality. It therefore cancelled interim police protection and directed constitution of a special cell, CBCID investigation, seizure and preservation of properties, restraint on alienation, and initiation of winding up proceedings to protect depositors and facilitate recovery. Case-Laws Companies Law Mon, 13 Dec 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=105055