Fixed deposit-holders of Morepen Laboratories are
a scared lot today, courtesy ICICI Bank. The reason: the
private sector bank bounced back fixed deposit interest
warrants issued by Morepen stating Not Arranged
For. The New Delhi-based Morepen has an account
with ICICI Banks branch in Connaught Place.
by the worried depositors, the bank officials told them
that Morepen provides insufficient funds towards the fixed
deposit interest and the warrants are honoured on a first-come-first-serve
basis while dishonouring the balance.
On the other hand
Morepen officials cite the companys advertisement
in dailies early this month announcing its decision to
switch over to the public sector Corporation Bank and
the issue of new interest warrants.
advertisement, ICICI Bank started returning the interest
warrants despite holding sufficient balance in our account.
We are in the process of dispatching new interest warrants
from the Corporation Bank account to our fixed deposit
holders, assures a Morepen official. The company
is changing over to a public sector bank, as it is dissatisfied
with the services of ICICI Bank.
reveal that the differences between Morepen and ICICI
Bank started in September 2002 itself. When Morepen asked
ICICI Bank to adjust the credit balance in its account
towards meeting its December 2002 fixed deposit interest
commitment, the latter refused to that and started bouncing
the cheques, thus creating a scare amon the investing
Now, the investing
community has reason to fear what with many corporates
vanishing with their hard-earned money.