a fraud in jvg

1. RAJASTHAN COLLEGE OF ENGINEERING FOR WOMEN
JAIPUR
PRESENTATION ON
“THE DOOMED DEPOSITORS”
SUBMITTED TO:
MAM RISHIKA SHARMA
SUBMITTED BY:
POOJA BHARGAVA
AARTI BHARGAVA

2. COMPANY PROFILE
 INDUSTRY JVG FINANCE COMPANY
 FOUNDED MR. VIJAY KUMAR SHARMA
 HEADQUARTERS MAHARASTHRA , UTTAR PRADESH
, BIHAR
 KEY PEOPLE DEPOSITORS
 OTHER BUSINESS JVG STEELS, JVG DEPARTMENTAL
STORE, JVG FOODS, ETC
 REVENUE TURNOVER OF RS 1000 CR

3. ABOUT THE COMPANY
 JVG was a non banking financial company which was set up by Mr. VIJAY
KUMAR SHARMA.
 In September 1989 Sharma has launched his 1st company “JVG FINANCE”
 The company brought over 3000 small firms under its control.
 He also launched “JVG Steels , JVG departmental stores, JVG foods , JVG
petrochemicals and many other companies.
 His whole empire of JVG was created by “PUBLIC FIXED DEPOSIT”.

4.  In 1990 he open the branches in villages and towns with a heavy advertising.
 In 1992 Sharma acquired SAN TOSHA RESORTS and INDIA CERO OIL from DALMIAS in 1993.
 The JVG GROUP’S turnover increased from RS 102cr in 1994-95 to RS 700CR IN 1995-96.
 He also had a strong political connections with railway minister RAM VILAS PASWAN .
 He has a ambition to build huge empire of RS 12000cr by the end of 2000.
 JVG launched AVATAR brand of detergent and washing bars in an attempt to enter the FMCG
sector.
 In march 1997 JVG acquired ORKAY’S POLYESTER yarn plant in Mumbai and it is a agreement
between three
IDBI , THE MEHRAS and JVG. But because of lack of money JVG didn’t able to pay instalment
on time and led to

5. DETAILING THE FRAUDS
 In march 1997 SEBI asked JVG finance to refund RS 45cr raised from public
issue but Sharma refused to refund the money and appeal to finance ministry.
 In September 1997 post dated cheques issued for principal as well as interest
on JVG deposit was bounced.
 Further company failed to submit audited balance sheet for the period ending
31 march 1994 and did not inform the RBI about the changes in composition of
the BOARD OF DIRECTORS.
 RBI also filled petition that the company has not maintained liquid assets as per
the requirement of section 451B of RBI act 1934.
 A total of 31 bank accounts of the JVG group of companies were seized and
amount of RS 5LAKH was frozen. And all properties of Gurgaon , Rewari and
Faridabad in name of JVG group were seized.
 He also claimed that majority of the certificates were fake and hence couldn’t

6. DEFLATED DREAMS
 The economic offence wing of Chandigarh police lodged FIR against
Sharma under section 420 of Indian penal code.
 He has a criminal cases against JVG group which was given to central
bureau of investigation for further investigation.
 In June 1999 ,after 16 months jail Sharma was granted bail on a
personal bond of RS 1 lakh
 He granted bail on certain health issues claiming that he was suffering
from hypertension ,angina and chest pain.
 The JVG companies were delisted and barred permanently from
indulging in NBFC activities in the future.
 All the hopes of getting money in future had vanished forever from
investors life.

7. QUOTE OF JVG
MY ONLY MISTAKE WAS THAT I SHOT MY MOUTH
OFF WITHOUT REALLY DOING ANYTHING .
NATURALLY THE MEDIA MADE ME OUT TO BE A
JOKER.
V.K SHARMA ( CHAIRMAN OF JVG FINANCE)

8. RISE OF
JVG
• Create large deposits from public .
• Heavy advertisements.
• Strong political background.
• Ambition to built huge empire.
• Company acquire San Resorts and India
cero oil.
• Further launched AVARTAR brand in
FMCG sector.
• Rapid increase in turnover.
• Acquire ORKAY polyester yard company.
• Brought 3000 small company under its
control.

9. FALL OF JVG
• Illegal crediting to the JVG finance
accounts of the public.
• Prohibition of SEBI rules and
guidelines .
• Issued fake certificates.
• Company not maintained liquid
assets as mentioned by the RBI.

10. REGULATORY AGENCIES ROLE
• RBI – Issued show cause notice asking why the JVG
should not banned accepting deposits .
• SEBI – Not check securities before the issue.
• IDBI – IDBI and MEHRAS control the working .
• INCOME TAX AUTHORITY – Acquire all the
proprieties of JVG.
• COMPANY LAW BOARD – Documents not proper
submitted.

11. CONCLUSION
Now we conclude that it is
the responsibility of the
regulatory authority of
SEBI to make proper rule
and regulations , so that
this type of fraud does
not occur in future.

12. THANK YOU…
Any queries….