Are Company Fixed Deposit Safe ?

POSTED BY Jagoinvestor ON April 4, 2010 COMMENTS (161)

Today we will talk about Company Fixed Deposits. There are many investors who are very much impressed by the Corporate fixed deposits and feel like they are as good as Bank Fixed deposits, but one has to understand that if company deposits offer higher interest rates, It is bound to be more riskier than normal Fixed Deposits offered by Banks. Most of the investors think that Company fixed deposits are safe just because the company which is offering these Deposits are very famous one’s and very big in Size. But that is not true ! .  How to Find cheapest Fixed Deposit in India

What are Corporate Fixed Deposits

Corporate fixed deposits are normal fixed deposits offered by Companies. The interest rates  offered are generally higher than Bank interest rates and can be in range from 9%-16% . Higher the interest rates offered higher are the risks involved. Why do companies have these deposits? when companies have cash crunch and require money, they can offer deposits at attractive rate of interest to common public, one of the reasons for this can be that they do not want to raise the additional capital by issuing shares.  Corporate Deposits are governed as per Section 58A of Companies Act, however these are “unsecured” loans (we will talk about it) .

Risks with Company Fixed Deposits

There are two main risks associated with Company Deposits , they are :

A) Default Risk : These Company deposits carry a risk called Default Risk, which means, at maturity they might not be able to return your maturity amount and default in the payment. It can happen that company is out of cash at that time or does not have sufficient money in their hand to pay back , this can happen for many reasons like their business might not be going good that time or because of recession .

MUMBAI, MAY 19: The beleaguered CRB Capital Markets has failed to submit its plan for settlement of Rs 180-crore liabilities to fixed-deposit holders. Reserve Bank of India (RBI) is now free to move court seeking the winding up of the non-banking finance company (NBFC).

Prudential Capital Markets Ltd., based in Calcutta was one of the biggest and successful NBFCs. But their reputation came under a lot of flak the moment they began to default in the payment of interests and the matured amounts. When flustered investors started queuing up to withdraw funds invested in Prudential, the company managed to stave
them off by stating that it would repay 40% of the funds within a year and the remainder a year later. In some cases the cheques were issued but if they thought they were lucky, they were in for a shock for their cheques bounced.

B) Unsecured Deposits : Bank Deposits are secured by RBI up to 1 lacs rupees per branch, which means that if bank does not return you the money or goes bankrupt, RBI will pay you up to 1 lacs of deposits. There is no such Insurance on Company Deposits, hence they are totally unsecured . Link

Update from Rakesh : We have very bad experience with Midwest Iron & Steel company. My parents had invested in this company in mid 90’s and the company was defaulted in 1997. SEBI had included it in its list of vanishing companies. Its been over 13 years we have still not received any money nor do we know any status of it. I had written to SEBI but not update yet.

Caution Points

Premature Exit from Company FD’s are not that simple like Bank FD’s. You might have to run from one place to another and send loads of letters and some times even give reasons for Premature Withdrawals .

One such investor, Vidyadhar Radhakrishna Lad, a senior citizen and shareholder of the company, had subscribed for the fixed deposit scheme of Jaiprakash Associates by investing Rs 1 lakh. Despite writing to the company and running from pillar to post for two months, Mr Lad has still not received his fixed deposit receipt (FDR). Link

Make sure you also consider the credit ratings given by CRISIL and ICRA for that FD .  (Understand CRISIL Ratings and ICRA Ratings)

Refer to the article below to read about Panjon Pharma Fraud in Fixed Deposits (Credit : Hemant Beniwal)

Fixed Depoits fraud from Panjon Pharma .

Should you invest in Corporate Fixed Deposits

There is nothing good or bad , some companies which offer Fixed Deposits are very established and are highly reputed, however you can’t take it at face value and ignore the risks involved. If you want to park money for short-term and are comfortable with the risks which come with corporate fixed deposits, these Corporate fixed deposits can be a good products for you. The point here is awareness. It’s not recommended that you put a big sum in same company. If you want to invest 2 lacs in company fixed deposits, then better invest 1 lacs in 2 different company, that would diversify your risk to some extent. Also if you are investing for some very important goal, then better settle with Bank Fixed Deposits and not Corporate deposits,  it’s better to settle with 2-3% less returns then take unneccessary risk . Here are some words of caution while choosing Company deposits .

Which Company Fixed Deposits you should avoid

  • Companies which offer interest higher than 15%.
  • Companies which are not paying regular dividends to the shareholder
  • Companies whose Balance Sheet shows losses
  • Companies which are below investment grade (A or under) rating.
  • Pvt limited Companies and Partnership firms as its very difficult to judge their performance.

List of Corporate Fixed Deposits


Company Name 1 yr 2 yr 3 yr
Ansal Properties and Infrastructure 11.5 12 12.5
Ansal Housing & Construction 11 11 12
Ind Swift Ltd., 11 11.5 12
Ind Swift Lab Ltd., 11 11.5 12
Jai Prakash Associates Ltd 11 11.5 12
Surya Roshni Ltd. 11 11.5 12
Shri Ram – Subhihska (62 Months) 12
Mukund Ltd/ Mukund Eng. Ltd(Plan B) 10.5 11 11.25
Jagatjit Industries 10 10.5 11
Jindal Stainless Ltd., 10 10.5 11


See Full List of Corporate Fixed Deposits

Other Important Points

  • Generally Corporate fixed deposits come for least tenure of 6 months .
  • No Income Tax is deducted at source if the interest income is up to Rs 5,000 in one financial year.
  • It would be wise to check company performance and movement in share prices half-yearly at least . This is for a review .
  • Companies generally provide a very high commission to brokers in order to push their Fixed Deposits.

161 replies on this article “Are Company Fixed Deposit Safe ?”

  1. N.G.Bhat says:

    I have deposited rs80000in Plethoco Pharma .Though matured two years ago till now they have not refunded the money .Deposit receipt was sent to Bajaj Capital for necessary action There is no communication either from them I am a senior citizen retired from service. Otis very difficult for me to lead day today life with meaner pension of rs 1750. Kindly advise me and help me sir
    N.G.Bhat Karnataka

    1. Complain to SEBI on this

  2. Ashutosh says:

    Hi Manish,

    I have gone trough all articles about corporate fixed deposits. However I wish to know how one should invest in them? Do we need a demat account for that? I checked that ICICI direct online option requires folio number, while their is a physical form that can be submitted in ICICI direct branch. HDFC website says that you can invest via trading account.

    Kindly guide me how to invest in them? Is their any way to invest without a demat/trading account?

    1. No you dont need demat for that, search online to know how to invest in that!

  3. Pukhraj says:

    I have invested in shree ram transport & finance limited fd. It has matured but has not been paid by stfc so far. Company FDs are very risky in India.

    1. Thanks for sharing that Pukhraj


    I am a senior citizen with FDs in IDBI BANK & TN POWER FINANCE AND INFRASTRUCTURE DEVELOPMENT CORPORATION, CHENNAI. Are they safe or I should withdraw and put them SBI

    1. I think its safe enough !



        1. Thanks for your comment V SREERAMAMURTHYVELLANKI

  5. Mskalra says:

    I have FD with JP industries.
    Repayment on matured FD is delayed for almost 6 months.
    Is there anything we can do to get payment in time.
    Is this company going to dupe the investers

    1. Complain to Police in this . Its kind of fraud from the company side !

  6. Pushpa says:

    Helios and Matheson IT ltd is a fraud company and has cheated the employees and investors. Investing in any of their product or working with H&M is risky and waste of time and money.

    1. Thanks for your comment Pushpa

  7. Prakash Sagar says:

    Dear Manish,

    Thank you for an informative article educating article above.

    My reason to connect with you is to explore possibilities of initiating proceedings against Jayprakash Associates & Birla Shloka, between the two I have deposited a total of 100,000 which has been long due and yet remains unpaid.

    Would appreciate if you can either provide any assistance or connect me with someone who can help me get my money back from them

    Anticipating your earliest positive response


    1. Hi Prakash

      Its more of a case of fraud, where you should lodge a complaint with police and also complain to company law board.


      1. ANURAG says:

        Ansal properties & Ltd is a ford compony it has not refund my FD No 95399 amount which was due on 03 Dec 2014 not yet refund. plese

  8. NS says:

    My parents have invested in FDs in Helios & Matheson. They had issued PDCs for interest & FD maturity amount. But at the time of maturity the cheques have bounced. The company office in Powai is not picking up phones, the emails bounce back. The agent asked us to give the company some time & hold on. But after waiting for three months, the next quarter cheques have bounced again. Can you guide me regarding the procedure to be followed.

    1. Hi NS

      True speaking you cant do much here. THe company has defaulted on maturity and now just wait for their communication. This is the risk of investing in Company FD

  9. Rewa Shankar Gupta says:

    I have invested the following amount in FDR of Plethico Pharma and I have sent these matured FD through Bajaj Capital but nothing has been done by the company. Number of reminders have been sent but no reply:
    Name FDR No. Date of Investment Amount Maturity
    Krishna Gupta 7170 22.6.2011 Rs. 3 Lac 22.6.2014
    Rewa Shankar Gupta 7171 do Rs. 3 Lac 22.6.2014
    -do- 23581 20.9.2012 90,000/-(commulative)

    1. You should now complain to Police on this . There are several cases on not returning money on time . You can also read this person comment

    2. ANURAG says:

      Ansal Properties & infrastructure Ltd is a ford company. i have fixed Rs 55000.00 by Deposit No 95399 on 03 Dec 2013 for 01 year, one year 02 months months has been laps but Ansal Properties & infrastructure Ltd new delhi not refund my amount. Please complain against said company and refund my amt as soon as possible

      1. Thanks for sharing that ANURAG

  10. DB DESAI says:

    After reading these comments and reading innumerable such cases in newspapers/TV and referring other stories in different media I feel there is not much difference in educated and uneducated, urban and rural, techsavy and oldfashioned, dhoti pagari and jeans tops, dehati language and english speaking, low income and high income, govt servant and corporate world employees when it comes to GREED. It makes them all blind and prompts them to jump into the pit with their money. I am really sad to learn these stories only because these are all hard earned, honestly saved amounts going into the hands of the thugs. But when will India learn? I have seen the same people making same mistake next time. LALACH BURI BALA HAI. There are ample ways and means to check the safety of your investments and there are ample ways to earn high returns with regulated risk rather than putting it into dubious operators, hands. Investors prefer to “SO” than JAGO” , unfortunately.

    1. Thanks for sharing your views 🙂

    2. Abhishek V says:

      I have a difference in opinion and am only playing a devil’s advocate here. A “JAGO-ed” person can also fall into such trouble which may be caused due to change of wind in market conditions. There can be cases where a well established, well paying, never defaulted company can go through to hard times resulting to such defaults. Of course, there are many companies who have poor corporate governance and ill intent. However, to many a general statement and ridiculing distressed people here is only adding insult to injury!

      1. Thanks for sharing your views on this topic Abhishek !

  11. Sunita says:

    My FD with Ansal Properties matured in May 2014. Till now I have not received my maturity amount. I am calling them regularly but there is no response. I am thinking of going to CLB. Beware of Ansal properties.

    1. Thanks for sharing that !

  12. u k saluja says:

    I would appreciate if you could kindly write about Micro Technologies India Limited and AVON Corporation Limited, Mumbai who have not been paying back money to their matured FD Holders for very very long time. AVON given FD for one year on 28/3/12 which was extended on their own upto 28/3/17. Micro Tech.did not pay interest for two quarters and also redemption money not paid for over six months now. Both companies gone into liquidation. Bajaj Capital ltd were following up fds when petitions were being submitted by many FD holders to CLB in 2013. Both complanies now with liquidator. Poor FD holders especially senior citizens suffering. CLB giving status of cases as”closed”. No one there to help. What to do please request all concerned to take up with MCA/CLB/SEBI/ and help old people and others on priority. Thanks.

    1. Sorry to hear that, I think they must have offered a high interest because their position is not that great !

  13. Neha Mehta says:

    Both my FDs were supposed to mature in August and September last year, but the company has defaulted on payments of both these FDs.

    1. Yea .. Company deposits are risky !

  14. Neha Mehta says:

    I have already made complaints with the CLB in April. But no response as yet.

  15. Neha Mehta says:

    I have really suffered because of Plethico pharmacueticals. i have two fixed deposits with this company both of which matured last year. Since then I have been making repeated calls to the company at its mumbai’s corporate office, but no response. everytime i call the company, i get this response, wait for another two months, you will get back your money. But now its been one year. I want to get my money back. please help me. I am really angry with bajaj capital and its agent who has got me trapped with plethico pharmacueticals.

    1. The company generally defaults and this is the biggest risk with company fixed deposits !

  16. moonshekar says:

    I have a fixed deposit with Ansal properties & infrastructure ltd.

    I have not received any interest for this financial year.

    There is no notification on the reason for non payment and no proper contact to follow up with.

    Please be careful when investing with Ansal properties & infrastructure ltd

    1. Thanks for sharing that !

  17. I have invested rs. 25,000 in Public category under non-cumulative scheme says:

    I have invested rs. 25,000 in Fixed deposit in Public category under non-cumulative scheme in Plethico pharma. The amount matured in Aug, 2013 but I have not received the money back. Kindly help, how can I proceed in this regard.

  18. The Stud says:

    I have also had very bad experience with company FDs (not all). Non performing ones are Birla Shloka, Zenith Birla, Nessa Liesure. I was new to this form of investment and regretting already. However, what has surprised me is lack of support or incompetence of law enforcement. I have talked to many folks and it appears nothing happens. These companies simply walk away with the loot. I think it is a well planned scheme in which many agencies are co-operating to trick investors. RBI should simply ban company FDs.

    1. But you can just not invest in companies FD , not all companies FD are bad !

  19. Supriya says:

    Are FDs in KTDFC (Kerala Transport Development and Finance Corp), a Govt of Kerala undertaking, safe compared to any other company deposits ? The website says, the deposits are guaranteed by Govt of Kerala upto Rs. 1500 Crores. Is it safe to park Rs. 3Lacs for 1 Yr? They are offering 10.25% for 1 Yr. Thanks.

    1. As they are not bank , I dont think they are as safe as a bank, You can yourself see that they have said that its guaranteed upto Rs 1500 crores, what if they have Rs 6,000 crore in deposits ! , what about rest 4500 crore if something bad happens !

  20. Ramji says:

    As per suggestion, If u have Online Banking for ICICI, HDFC etc., invest in bank FD. This is safe, secure as well as very easy.

    1. What is your question ?

  21. Priyabrata Giri says:

    No Manish. I want to invest in Hdfc (non-bank) cummulative deposit. Plz suggest me with your valuable opinion.

  22. Priyabrata Giri says:

    I want to invest Rs.50,000 in Hdfc ltd. Plz suggest me will it be safe? What is their
    payment procedure at the time of maturity?

    1. You mean you want to invest in HDFC Bank FD ?

  23. krishnakumar nair says:

    just wished to share that Mahindra finance and Shriram Transport finance have been paying me regular interest incomes on their FD for the past three years, will be reinvesting in them again.

  24. JGC says:

    Ind Swift Ltd & Ind Swift laboratory Ltd also defaulted on making payments to mature FDR holders. They have stopped payments to cheques for Principal & Interest amounts already issued. They got the Company Law Board New Delhi’s order dated 11.09.2013 which could be a EYE OPENER to FD investor like us. Highlights are as under,
    1) Interest @8% per annum to be paid till date of repayment.
    2) Holder’s of FDR for Rs. 25,001/- to Rs.50,000/- . Payment shall be made with in 4.5 years from the date of maturity. 20% 1st year & 2nd year+ 25% 3rd year & 4th year + 10% 4.5 year. Entire Interest will be paid with the last installment.

    Interested can download the order from CLB’s website.

    Mr. Manish would you like to make any help / suggestion/ comments for affected investors?

    We heard that Bilcare Ltd has also got CLB’s order for rescheduling FDR’s. And there are aboy many going in same line?

    1. Thanks for sharing that . Investing in companies fixed deposit is always risky like this .

  25. HARSHUL VERMA says:

    I have deposits in Micro Technologies (India) Ltd. & Omnitech Infosolutions. The Maturity date was 24th sept. However, they have defaulted in making payment. Making Complaint to CLB to both but not sure when will CLB give date for hearing as previous cases are pending with them since long. Any other way to take action against these companies?

    1. You can complain to Companies Board, however these are the risks in investing in Company Deposits compared to normal Bank FD’s

  26. Shwetha Bharath says:

    I also have a bitter experience with OMNITECH. They have not settled our fixed deposit also, which matured on 1st Sep. My husband is calling them every day, but no one is responding. Even Bajaj Capital who did our FD is not helping. Very worried.

    1. Thanks for sharing that Shwetha !

  27. Manav says:

    It is correct that Omnitech people are completely avoiding the investors. I have invested Rs. 4 Lacs with them for 1 Yr. The due date was in the last week of August. Till no news of any repayment. I called them many times and sent them many emails. NOT ONCE have they responded to my calls or emails. So I lodged a complaint with the Company Law Board. Is there anything else I can do like filing a criminal case against them etc. Because I am very upset with their indifference more than with their defaulting. Does CLB act immediately and justly?

    1. Please complain in POLICE on this at the earliest !

  28. Anil Kumar says:

    Stay away from investing in fixed deposits of Omnitech Info solutions and Bilcare. These 2 companies are defaulting on their deposit repayments. They do not even take our phone calls.

    1. Thanks for sharing that Anil !

    2. Sridhar Reddy says:

      Omnitech is the worst. They are totally avoiding all deposit holders. You are right. They are not picking up any phone calls. We don’t even know when we can expect our money. How can such big companies think of surviving on small investor’s money? Company Law Board is the only solution.

  29. sandeep says:

    what is rating of Ansal Properties & Infrastructure Limited (API)?
    please someone reply.

    1. Which rating are you talking about ?

  30. Pingback: SBI unFIXED Deposit - Assured return, Know this... - PlanRupee
  31. Hayat says:

    which one is better and safe option hdfc ltd fixed deposit or dhfl fixed deposit for Rs 500000 Time 2 Year.

  32. Kumar says:

    1.Mr Chirag Patel, Director CEO of Plethico pharmaceuticals Company was caught by Custom officials & police at Mumbai Airport, with Gold in biscuits in socks and 14000$; He didn’t declare it to Custom officials who also found Rolex watch from him. He was coming from US via Dubai. (Pl refer TIMES OF INDIA, MUMBAI, 18TH April 2013

    2.Plethico’s actual Turnover(T.O) is to the tune of 120 Crore and Natrol Inc., USA (Co., was taken over by Plethico in 2009) is having T.O of 550 Crore; so total T.O is 670 Crore but Plethico is show in annual T.O of around 1500 crore. This is to manipulate the share market.Kandal is free jone there is no sales tax. Company was showing exports from , Kandla (SEZ zone), but officials found that it doesn’t have factory at Kandla. Thus Plethico was saving Taxes illegally. It is increases prices from Kandla for e.g from 0.9 cent to 2.5$ to show increased value in invoice; the same is done to manipulate share Market.IT Raid:- IT Deptt raided 10 premises of Plethico Pharmaceuticals Ltd (Nutraceuticals Company) on 9th sep 2010. Raid were conducted in Indore, Mumbai, Delhi office, & Tax theft of 57 Crore is find out. Please check (website:-; ). From Kandal max goods there are exporting to
    own company based in Dubai.
    a. Komedge international FZE
    b.Valancy International FZE
    c.Tricon holding FZE
    Through these methods they are making big Turnover Of company.For What they are doing.a. For increase share price in India. Because Turnover Is increase.b. For change black money to white money. By today Plethico of big dues on export currency return means they have export goods on over price for increase T.O. But money is not back to country in Usd.
    Once the audit of A/c is done then you will find lots of o/s in the books of Plethico due to financial crisis.
    Its Required to investigation!!

    3.ILLEGAL TAKEOVERS :- Company has shown in their books that in 2004-05, they have acquired stakes in REZLOV (Mktg. and Distribution Chain in CIS) . Fact of the matter is that REZLOV Company belongs to Plethico & they are holding this company through their employees or relatives.Plethico has taken over its overseas company REZLOV (Mktg & Distribution chain) through its satellite company Valancy, Tricon. Etc. This means it has transferred all money to its own company and showing Government of India and Indian people that they are taking over foreign company. Plethico has transferred around 15million $ in 2004-05 to acquire REZLOV but indirectly this money has been snaffened by promoters of Plethico for their own overseas satellite A/c’s in Dubai( Tricon, Valency, Komedgh).

    Present status of REZLOV.This is a serious fraud requires full investigation.

    REZLOV UKRAINE:- This is still held by local Representative; but Plethico is showing in their books that they control 45% ; 54% control by Plethico Satellite Co., VALENCY; 1% held by Country Manager (CM) Mr Binod Kumar.But company is Registerd in 2006 as 100% Ukrainian. As Plethico website inform 2007 , 45% transferred to Plethico. But there is not controlling share as informed Plethico website.(For information: 2012 four four months Rezlov Ukraine 45% have transferred to Plethico but Plethico have not paid me for transfer of share so end of 2012 all 45% have back to me.)

    REZLOV KYRGYZSTAN:-45% Control by Plethico; 54% control by Plethico Satellite Co., VALENCY; 1% held by Country Manager (CM) Dr Vikas K Malik;but in 2010 it was closed and it was not informed to RBI. Plethico is even in on websit have not putted that company is closed. 4. ILLEGAL TAKEOVER :-PLETICO has shown in books that they have acquired TRICON FZE, DUBAI in 2008; Plethico has done a propaganda that Tricon is having Pharmacy chain in CIS countries, but FACT OF THE MATTER IS TRICON is just a trading co., in Dubai, which has been a satellite co., of Plethico only and it has got no pharmacy chain in CIS. To acquire 20% stake in their own satellite co., Tricon Holding, Plethico has send 20Million$. This is also suffering of funds to their own overseas A/c’s for taking over their own co., which is again violation of FEMA.Tricon is controlling by Plethico indirect. And Tricon have not any pharmacy chain in CIS. So there is 20 million usd transfer required
    investigation.Following information found in Annual Report 2011 from subsidiaries and step-down subsidiaries, the Rezlov Group ofCompanies in which company currently hold 45% equity stake, alsocontributed significantly in the growth of the organization. Tricon, aDubai based retail pharmacy chain in which company holds 20% stake alsostrengthened Company”s clench in pharmaceutical and nutraceutical markets of the CIS.

    5.FURTHER SNAFFENING OF FUNDS FOR FICTIOUS PROJECTS(DUBIOTECH-UAE) :- Plethico has transfer and 40million $ to Plethico Internationla Limited-UAE, Dubai for setting plant in Dubai Biotech. Fact of the matter is no official agreement for leasing of site has been signed. All documents signed are fictitious just to fool the governing body in India.Plethico has been boasting in financial message that plant in Dubai will be commencing in 2011; but the Fact of the matter is that no construction work has started in Dubai. This 40 Million $ also has been send abroad on pretext of setting of plant but ultimately this money has gone to their satellite co.Plethico is transferred 40 millon USD . Which is by today not working in real Only in paper. We found dubiotech website only information of Natrol. in Annual Report 2011 Plethico informed that all ready setup mufacture plant in
    UAE: company has two Wholly Owned Subsidiaries namely PlethicoGlobal Holdings BV-Netherlands (PGH) and Plethico InternationalLimited-UAE (PIL). The PGH is also having subsidiaries and step-downsubsidiaries in many countries that had given added advantage of rapidscaling-up, broad-ended customer base and global footprint. PIL hassetup an ultra modern medicated lozenges and solid doses formulationunit in UAE. The only company which Plethico has taken over is Natrol LLC USA by raising 75Million $ through FCC. All figures shown in the financial statement are bogus , which needs to be audited by Govt Regulatory Body.4. N P Gandhi & Co., Mumbai has done audit incorrectly and approved wrong financial statements. There should be inquiry for this Charted firm also to bring out the

  33. Sanket says:

    My FD with Plethico pharma matured on June 4th. It has been 10 days and I have not received my check. Called up LinkinTime and they are saying that they have check ready however the company has not given permission to release the check. Called up the company. Their CS Mr. Chourasia said send me the details and I shall look into it. Don’t know what will happen. In short Don’t Don’t Don’t invest with Plethico Pharma.

  34. Manoj says:

    Plethico pharma is not paying FDs in time. In spite of repeatedly calling LinkinTime and the company, there is no response. Don’t invest with Plethico Pharma.

    1. Thanks for sharing your case !

  35. ANURAG says:




    1. There is no solution to this , This is what happenes with companies FD , I am sure you invested because there was high return involved . High returns, High risk !

  36. kedar says:

    I seek your guidance.
    I hv invested in Birla Power and Ankur Drugs & Pharma, both the companies are not paying interest as well as maturity amount.
    What is the remedy? Is there any website or portal or grahak manch where we can lodge a complaint against these cos?
    Also pls advise if approaching to CLB would help.

  37. Kumar says:

    Plethico is making fraud throug fixed depopsit and sending all money out of countery.
    Press Release

    New Delhi 01/05/2013

    Big Corporate Fraud

    While addressing the Press Conference, Dr.Udit Raj, National Chairman of the All India Confederation of SC/ST Organizations said that Plethico Pharmaceuticals Limited, Indore-based Indian Company, claiming to be a leading healthcare/pharmaceutical company, has posted totally wrong and unreliable information about Rezlov LLC., Ukraine on its website This complaint was made to him by the director, Mr. Binod Kumar, of Rezlov Company and he wrote letter and furnished other fraudulent documents. On the website, they have stated that they hold 45% shares of Rezlov LLC and their investment as in 2008-09 was Rs. 159.77 million. As is evident from the Certificate on State Registration of Rezlov LLC and a certificate from the Uniform State Register of Enterprises and Organizations of Ukdraine, Rezlov LLC was registered in 2006 as 100% Ukranian company and as of today, it is a 100% Ukranian company. Plethico Pharmaceuticals Limited has wrongly claimed in website, Press and public fora that they control 45% shares of Rezlov LLC, Ukraine and that their investment in Rezlov LLC in 2008 was Rs. 159.77 million. As per para 20 of the annual report for year 2008 (refer report 2008.pdf sheet of the Company, the status of equity holdings as on 31.12.2008 in associate companies as on 31.12.2008 has been wrongly shown as –



    No. of Shares Held

    % of equity holding

    Investment at cost (Rs. in min)

    Loans & advances as on 31.12.2008

    SC Rezlov






    As per Ukranian records, Plethico Pharmaceuticals Limited does not hold any shares in Rezlov whereas according to the balance sheet, Plethico Pharmaceuticals Limited holds 16088 shares amounting to Rs. 159.77 million which according to them works out 45% of equity holding.

    Dr. Udit Raj further said that the name of Shri Binod Kumar, an Indian citizen with permanent official residence in Ukraine is currently not the official representative of Plethico Pharmaceuticals Limited in Ukraine as has been claimed by the Company and as a matter of fact, Shri Binod Kumar is a Director and shareholder of Rezlov LLC Ukraine.



    No. of Shares Held

    % of equity holding

    Investment at cost (Rs. in min)

    Loans & advances as on 31.12.2008

    TOO Rezlov Ltd






    ICS Rezlov MO SRL






    OOO Rezlov Ltd






    CJSC Rezlov






    SC Rezlov






    Rezlov LLS






    If Plethico Pharmaceuticals Limited company can make false claim of holding equity shares in Rezlov, Ukaraine then it is likely that holdings in other countries are also bogus. Thus fraud worth 100 Crores can be unearthed if proper investigation is made. So far RBI has failed to take any action despite the fact Mr. Binod Kumar had already launched complaints with it.

    This fraud is being organized by Mr. Shashikant Patel, Chairman cum Managing Director and Chirag Patel of Plethico Pharmaceuticals Limited. Its registered office is shown at A. B. Road, Manglia, Indore, Madhya Pradesh- 453771, Phone- 0731-2422881-85 and corporate office is at Sabnam House, Ground Flr, Plot no.-A 15/16, Central Cross Road-B behind MIDC Police Station, Andheri Mumbai-93, Phone-66988301-2. Shri Pranab Mukherjee, President of India has rightly said in National Academy of Direct Taxes, Nagpur on 29th April that the corporate companies are avoiding the taxes. Dr. Udit Raj said that unfortunately in our country, the corruption of politician and bureaucrats are more known than the corporate houses. It is demanded that CMD and Directors are immediately arrested and investigated.

    Shri Binod Kumar has taken up the matter of several irregularities and acts of financial impropriety including money laundering running into crores being committed by Plethico Pharmaceuticals Ltd. with the Reserve Bank of India which need to be probed thoroughly.


    (PA to Udit Raj)


  38. Pingback: Fixed Income Investments » Money Shastra
  39. dr. amit says:

    dear sir , thanks for the informative article.
    Please guide whether debt funds better than banks f.d. in terms of risk and returns, thanks

    1. Yes they are better in return, but higher in risk , which is obvious 🙂

  40. rohit says:

    thx a lot 4 info
    really plsd to hav found precisely wat i was lookin 4
    thnx again

  41. Arun M says:

    Hi Manish,

    Kindly confirm if Company FDs are freely & fully repatriable as Bank NRE FDs?

    1. If you are investing in it from NRE account, then YES ! , anywhere you invest using NRE will be repatriable!

  42. Balakrishnan.S says:

    On Company FD’s – High risk with defaulting companies like Birla Power Solutions,etc.People have to get together in each city and jointly ghareo the company offices and sent notices with details to CLB/Local Police Commissioner.You can also complain to Ministry of corporate affairs.The Government should take action on such FD’s and bring in a legislation to punish the defaulters and get the money back as the amount is from poor investors and they are the vote bank of the Government ruling.This amount is huge and cannot get waylaid under company FD stating risk level is high.Otherwise close down the company FD schemes and let banks handle them with less risk.

  43. Worried Investor says:

    I am having bad experience with Plethico Pharma. I invested in a FD with them. They have not repaid on time. I called LinkinTime (registrar for Plethico Pharma FDs) several times. The number is always busy. I could reach them only once and they were very casual in saying that there will be a delay, and it is normal, and that they will not pay any additional interest for the delayed time. I am surprised that they are not even sorry for the delay caused and not showing any interest in refunding my money anytime soon.They just hung up on me while I was still speaking. My suggestion to everyone is Please DO NOT invest your hard earned money with Plethico Pharma and DO NOT deal with LinkInTime. As for me, I am just praying that I will get my cheque soon.

    1. This was expected, you should be very clear that any corporate FD comes with these kind of risks , thats why they give higher interest, and check the terms and conditions of the FD . Is it mentioned that no interest will be paid additional incase of delay ,if thats the case, then you are in a fix legally

  44. Gunjan K says:

    Hi Team,

    Can you please let me know the credit rating for Jaypee Infratech, I am planning to invest in their Corporate Deposits,please let me know about this investment.

    1. Gunjan

      Better ask it on our forum –

  45. Tarun Dhingra says:

    i thought you mean that the company has run away .—-no,i was not saying that . suppose any company has run away with its bag & baggage . and no many action was taken by the fixed deposit investor at that time when company was packing its bag & baggage then in later stage u will have no remedy what i think .
    except approaching to court where criminal case can be registered against promoter and director .
    If company might be working , then search for its address and contact details and file a case against it .
    ans—can a common investor do that ? i know he can .but whether a common investor will take the course of law . this is his last remedy .but i was saying u can approach to COMPANY LAW BOARD .if company is unable to pay its debt then proceeding will be initiated by the clb if any complaint is made to it by investor. . . ONE THING i would like to know WHATS THE ROLE OF SEBI . I MEAN WHAT action can be taken by sebi if any company is not paying money back to its fixed deposit investor ???

    1. Obviosuly if the company is there some where which can be contacted, then the money has to be repaid first to FD holders as they are the primary people to get the money back, but if there is no trace of the company , then you cant do anything ..

  46. Tarun Dhingra says:

    Rakesh April 5, 2010 at 7:19 pm

    We have very bad experience with Midwest Iron & Steel company. My parents had invested in this company in mid 90′s and the company was defaulted in 1997. SEBI had included it in its list of vanishing companies. Its been over 13 years we have still not received any money nor do we know any status of it. I had written to SEBI but not update yet.

    Please invest in good companies only.


    1. I am not sure how to get the money back if the company just vanished !

      1. Tarun Dhingra says:

        I am not sure how to get the money back if the company just vanished !—–


        1. I am not saying that, i thought you mean that the company has run away .. If company might be working , then search for its address and contact details and file a case against it .

    2. Amit says:

      Mr Tarun
      Pls go through my comments earlier Loge an FIR with Police station Take this matter to the court of law Yes it may take time but if you win the case the Interest + Principal +Court Fee +Lawyer Fee will be refunded to you in case if the company make default in making the payment to you with time frame given by the court the Court can forfeit the properties of Directors and auction the same and pay you off. Even if they are totally bankrupt even then Guarantor can pay you or even worst of Conditions the court can put them behind bars

  47. ASHU says:

    would you recommend the company list given above

    1. No recommendation , You have to decide that on your own after searching and understanding about those companies

      1. ASHU says:

        But the companies in NIFTY/SENSEX may you rate more?

        1. Ashu

          Not clear with your question . Can you rephrase it ?

          1. ashu says:

            I meen, shall the companies of SENSEX/NIFTY are safe/good for FD?

            1. Ashu

              Company FD’s are always more risky than bank FD

  48. Veng says:

    I had opted for a FD with Unitech for 1 year in Sep 2010. Everything went smooth, I got the FDR in time.

    I had submitted the same for redemption in Sep 2011. Unitech has still not returned me the principal back. The customer care is giving excuses every time. I have been following up for this since Oct 2011. Oct and Nov are gone, but no use. The reasons (excuses) given to me are that they are upgrading the software etc….I feel that there is a severe funds crunch. The customer care religiously listen to the good, bad and sad word thrown at them and give me a revised commitment in return! The latest commitment that I have from them is 5th Dec. All the best to me!

    I am still behind their customer care. I wanted to escalate this to the responsible managers running the show. I got a mobile number and email ids to complain. But the person with that mobile number never picks up the call. The daily reminder mails that I sent are not replied (not even the first time when I smelt bad)

    This is the status. I am sharing this with you in this forum for the following:
    1. make the larger public aware of the problem at Unitech on returning the money
    2. is there someone with some acquantaince at Unitech to pushhhhh?
    3. whom do we go and complain to with this arrogance of a company that has taken loan from me and not obliging?

    Jago Investor…Jago

    1. Veng

      its a wrong thing that company is doing . You should now complain to RBI on this and also threathen them on this . But before you do that remember that you have invested money in a COMPANY FD , its not like a BANK FD which is so secure . Its less secured that a bank FD and whatever is happening with you is one the possibilities of company FD


    2. Amit says:

      MR Veng Log an FIR with Resp Police Station for cheating under 420 of IPC is the best option you have and nothing else. Register a case in the court of Law be you have spend More Money to recover that lost money but if the FIR is Loged with the Police then 50% the case is yours

      1. Amit says:

        Section come under 420, Criminal Intention, Issue of Fraudulent FD Bond, Misappropriation of Fund, Diffidence in services, Cheating By the Company By their board of Directors, Issue of Fake and Fraudulent Balance Sheet Printed in the FD Go directly to the Police Station with written Complaint Mentioning these above in the subject and in Detail in the Matter request to the Police to or file an PIL in CAG to make aduit of the Company
        Dear is sure this fight is difficult but also sure that trust in God People Some one like Arvind will come and help in this fight against this mighty corporates The court of Law is the only best possible way now do not go the company any more

  49. Vincent says:

    Dear Sir,
    I have worked earlier sub broker to fixed deposits. Now I am working in Saudi Arabia
    and here good opprtunities to canvass FDR for Companies.

    Do You know any good Broker Company willing to give sub Broker

    Best regards


  50. MANOJ says:

    Recently came to know that a company called Muthoot Finance accepts Gold Bonds(secured debentures) at very attractive rates as high as 12% with the option to receive interest in monthly,quarterly,half yearly intervals. These bonds are backed by charge on the assets of the Company and has the option to withdraw before maturity as well as to avail loans up to 90% value of the deposit.

    Looked interesting to me. I wanted to ask people here if have invested in them and share their opinion regarding its safety.


    1. Manoj

      Did you look at the assets of companies ,are they lesser than their loans ? Will u be the first person eligeble for the money incase some bad thing happens to company ?

  51. M K RAMA RAO says:

    Dear Manish,

    i am prepared to invest my 10 lakhs in 1) Ansal Properties 2) Plethico Pharma each five lakhs for one yeat. but i am serching in net your comments i have read then i change my plan to invest after i receive your valuable advice only.

    1. 1 yr looks very small time frame to give any comment , the better answers can come from our forum :

    2. mohan babu says:

      pls do not invest such type of companies.

  52. Mohan says:

    Dear Manish,

    You have mentioned that bank FD is insured upto 1 lac as per RBI guidelines .. Suppose bank X is giving good rate of interest and I would like to deposit 2 Lacs .. So is it a good idea to deposit 1 Lac in one branch and 1 Lac in another branch of same Bank X ? Please advice.

    1. MOhan

      No , its only 1 lac in all the branches of 1 bank . so better do it in 2 different bank


  53. Vaibhav Goyal says:

    Hi Manish,
    In the past I have always invested in Bank FDs, but now for the 1st time I am planning to invest around 50K – 1 lac in corporate FDs, due to the higher interest rates offered by them.

    I went through your above article and found it extremely useful. I am planning to invest in FDs by Unitech or Jai Prakash Associates. I tried to find the ratings for them on CRISIL, but couldn’t locate the same (chkd out the link ‘Ratings List > Credit Ratings list’ but couldnt find these companies), can u plz guide me or provide a link of corporate FD ratings on the CRISIL site? Also which amongst Unitech & Jai Prakash Associates is safer according to you?


    1. Vaibhav

      I think you should search more as even I am not able to locate the links , please ask your question on the forum , you will get the answer there :


      1. Vaibhav Goyal says:

        Thanks for that quick reply 🙂 Will post the query on the forum.

  54. Hari says:

    Hi Manish,

    I have a fixed deposit of 4 lacs which just matured from SBH and planning to put it back into a FD for another 12 months. I came across Shriram Unnati Fixed Deposit. I am not willing to invest into a corporate FD if there are any risks involved like defaults or getting the maturity amount after full term. I would rather prefer a bank FD. Is this Shriram thing a safe scheme? Thanks.

    1. Its not a large NBFC in India and hence carry same risk which are mentioned for corporate FD’s , however this seems to be a good one


  55. sbprasad says:

    please let me whether FD with Ansal Properties is safe or not

  56. jitesh says:


    Panjon Pharma Ltd. is listed on the website link you have provided 🙂 Look at

    somebody should caught him there


  57. amol s says:

    Hi manish,

    what about Fixed deposits in co-operative banks? Are they safer than company fixed deposits. RBI has good control over co-operative banks and also offer little higher than Nationalise banks.

    You views please.


  58. Boby says:

    Do you have idea how much investment advisor get paid as agent commission for selling companies FDs? Probably you may list per rating ( AAA, AA+, AA, etc ) of the FDs or take an example for few companies in each of these rating categories.

    1. Boby

      It can range upto 4-5% 🙂


  59. vishal punatar says:

    to manish chauhan,

    want to know more about the diff debt products, different types and when to invest in these. also if u throw some light on trading of bonds and how it takes place in the mkt.

    1. Vishal

      too many things 🙂 . First have a look at different articles already written , you will have a good idea on debt products , regarding trading of bonds , its out of scope of my knowledge, check Deepak Shenoy blog for that .


  60. yogesh says:

    Hi all,

    Regarding TDS ..If any one is aware..Plz update..

    If interest earned in financial year is less than 10K then also do I need to fill 15G form ?
    Or in that case 15G need not to be filled?


    1. Sohil says:

      FOr company fds its 5k not 10k as bank interest

  61. Sohil says:

    Well my family have banks fds worth rupees 5-6 lakhs to be precise
    4.5 lakhs on my sister name
    1 lakh each on my mother and father names

    I was planning to sift to company fds .As there return as u showed looks attractive
    But after reading lot of articles on internet…I am having doubts

    I just had shortlisted jp associates and unitech to make fds worth around rupees 1-2 lakh from our total investment

    Have read jp associates e.g

    but still from your perspective .What is your take on this company’s fds

    And regarding bank fds insured upto 1 lakh .Even i guess in old cases people who have lost their money in duped banks found it hard to get their insured money or were given just part

    1. Sohil

      You can go ahead with Company FD if you are ok with those risk involved . Defaults are not very high , its happens rarily , but there are issues which you need to be aware of and are ready for it .

      RBI does not insure each and every small bank , but it has to be a nationalised or a bi private bank like ICICI , AXIS or HDFC .


      1. Sohil says:

        Ya thanks for all your particular comment

        Actually my mother have already 40k deposit in tata motors and so far from past 9 months we are happy with their service….

        Will take care while i make any decision in investing in company fds…

        By the way looking for article to invest in gold in demat form specially the recently introduce NSEL one manish

        Also nice blog have added in my bookmark will share on financial forums your links to promote same!

  62. S S says:

    If one keeps the psychology of people in mind, company fixed deposits are not a good option for investment. FDs have always been considered safe, before poeple became aware of company fixed deposits. Till date general perception about FDs is that if you want to put some money aside safely and earn something on it get an FD. No one bothered to do basic research for an ordinary thing like FD. That feeling still persists. I guess lots of people treat company FDs in the same way. Lack of information, we don’t know how it works.
    Punchline: “a” is missing

    1. Shweta

      yea .. You are very correct , FD are so simple products that investors do not bother to research at all .. And the thing is they have not heard a lot about defaults in FD’s from company , So this mistake happens .


  63. Rakesh says:

    We have very bad experience with Midwest Iron & Steel company. My parents had invested in this company in mid 90’s and the company was defaulted in 1997. SEBI had included it in its list of vanishing companies. Its been over 13 years we have still not received any money nor do we know any status of it. I had written to SEBI but not update yet.

    Please invest in good companies only.


    1. Rakesh

      yea .. they are not insured by RBI upto 1 lac, otherwise you can claim it from RBI .. sad .

      I am adding this example of yours in the main article .


      1. Hitesh says:

        Hey Manish,

        Just a curious question… as u said that RBI insures FD of banks till 1 lakh, does this mean we should avoid investing in FD’s in heavy amounts..
        what i mean is 3 FD’d of 1 lakh each is better than 1 FD of 3 lakhs…and would the government insure all three FD’s in the first instance.


        1. Hitesh

          Definately .. Invest 3 lacs at one place means insurance of 1 lac . Investing 1 lac 3 places means insurance for 3 lacs . Read more details on this .


          1. Hitesh says:

            Thanks Manish

            Would followup more on this..


      2. prasanna says:

        I saw many advertisements of secured FDs also by companies. but in this article it is mentioned that all company FDs are unsecured. so if i choose a secure FD of
        company FD means what is the risk. also risk means delay or repayment or
        lose. since it is mentioned as secure FD can i complaint on the company to
        some one and get full principal and interest or not.please clarify

        1. You think for 2 min .

          What issues can happen in a company , a company might be out of business or might not have sufficient money to repay , Its not like govt banks or private banks

          1. prasanna says:

            thanks manish i understand that if a company went out of business it is very difficult to handle. but if the company is running business and delaying
            repayment can we complain with some regulator and get our money or still it is also not possible. also want is the difference between secure and non secure NCD since some and declaring as secured and some as non secured

            1. Yes, better compplain to EPFO on this

    2. sebastian islary says:

      Let me suggest u.. try to confirm whether urs fathers company(where invested) was really listed in stock exchange(at the time of investment) if yes, then approach to sebi. if rbi can return money on behalf of banks failure, then why can’t this sebi, after all, govt. authorised sebi to look after all corporate fixed deposits as rbi got authorisation from the same govt. to look after the banks fixed deposit. if not, forget ur hard earn money.

  64. Sunil Date says:

    One also needs to check whether it is a manufacturing company or a finance company. A manufacturing company is not as risky as a finance company. A finance company can just lock their “rented offices” and walk off, whereas a manufacturing company cannot just close their facilities.

    1. Yea thats one point , thanks


      1. sanjay says:

        manufacturing companies is not as risky as finance company,
        but manish sir,you said invest in company FD which are Rated by CRISIL,FITCH,etc

        but these agencies not RATE manufacturing companies.
        are there any great manufacturing companies which are more safe then these CRISIL,CARE,FITCH rated companies,if yes can you name that companies please

        1. Why are manufacturing companies less riskier ?

  65. yogesh says:

    Manish ..Nice & very informative article .thanks

  66. Subhendu Nath says:

    Hi Manish,
    Nice article. Investor often think Fixed Deposit means a Gurantee of return. Can u give me any idea ,who is regulate this FD market?


    1. Subhendu

      They have to comply with the rules set by govt , I guess RBI should be the regulator.


  67. venghatesan says:

    CRISIL and ICRA are companies which rate the companies offering FDs.
    If you see a rating for a company as FAA, FB etc by CRISIL, go to this link to understand what it means. (how safe is your FD with that company)

    If you see a rating for a company as LAAA, MAAA etc by ICRA, go to this link
    and find yourself.


    1. venghatesan

      Excellent , thanks for adding this valuable information , i will add it in the article itself 🙂


  68. Hi Manish,

    U missed the Credit Rating aspects of Fixed Deposits. That also gives a good idea. However lot of them are not rated at all.
    HDFC Ltd which are rated AAA are the most common in the market. The return is just 50 basis points or maximum 100 basis points more than Bank FDs.


    1. Abhishek

      Yea that slip out of my mind 🙂 . I have added it .. see the next comment also , there are good links .


      1. arvind says:

        i have one company who is ready to deposit 200 corers for 1year 1 day with rate of int 8.75% but he is asking 7 % can it be dealed if yes please mail me for further process —

        1. How can I tell you this ?

          1. sandeep says:

            hi manish, keep up the good work of guiding the investors.
            i have a question, i am planing to invest around 2 lak. for 1 yr in ansals as i m new in field of investment and this is my 1st investment. i was about to go ahead but thank god i read ur blog and have second thoughts about this. please guide me about the risks of this particular investment. and in your own opinion should i do this?
            u can reply me on

            please reply soon.

            1. The risk are same as discussed in the article !

  69. Panjon Pharma(I think everyone know this name) is the latest in the list of Corporate FD Defaulters.

    At the time of investment return in not the only thing that matter. Risk-Return, Tax, Inflation, Liquidity are equally Important.

    1. Correct

      I dont think its a big company , as i never heard about it . Better to take FD;s of companies which atleast are nationally and glabally known and have been in existence for more than 10 yrs .


  70. ashish says:

    Nice article 🙂 .

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