Payment by RBF Nidhi

RBF Nidhi is likely to start making the payment of the second instalment of its repayment in the first week of October.

The first was repaid in May and June 2000. With the fund managing to collect Rs 15 crore in the subsequent period, it appears to have been in a position to make another round of payment. The stay vacated by the Supreme Court and its direction to Mr Srinivasalu Reddy, of the Balaji group to pay the balance of Rs 15 crore within four weeks of September 18, 2000, should also improve the position of the fund to make a payment now.

Depositors to whom the nidhi has to pay Rs 20,000 or less would receive five per cent of the amount due subject to a minimum of Rs 1,000. The total amount payable in this category is placed at Rs 12 crore as there are 12,00,00 investors.

In the second category where payments are likely after the money is remitted by Mr Srinivasalu Reddy, depositors to whom the nidhi has to pay more than Rs 20,000, will be paid. The amount payable to them is placed at Rs 17 crore. For those investors who hold cheques issued by the previous management, the payment obligations would be met. Now the RBF Nidhi is under the management of an independent board with Mr A. R. Rao as its Chairman. The proposed payment may bring some partial relief to the investors in the beleaguered nidhi.