NRI investors file a case against ICICI Funds Management
A number of NRI investors have filed a case in the Mauritius Supreme Court against the ICICI Venture Funds Management Company by accusing the PE firm for misleading them while raising the real estate fund that went to under perform when they had been promised by the fund management company of a certain return.
ICICI Bank and the Western India Trustee and Executor Co have also been filed as the respondents in the case. However ICICI Ventures, India’s largest PE fund stated that the allegations are not true and that the company had not made any promise and did not guarantee any rate of return. 69 investors who are mostly from the United Arab Emirates and Gulf Cooperation Council (GCC) countries stated that they had invested an amount of $34.7 million in the $220 million Dynamic India Fund (DIF) III since the year 2005. The investors said that they been allegedly promised of a return of 25 percent of the investment. Although at present their investments are under deep waters.
Further investigation will be conducted regarding the case. Post investigations actions will be taken. However the company has been saying that no such violation was made.
Source: The Economic Times
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