Franklin Templeton Debt Fund Scam

By Col Mahesh Ramachandran, November 15 2020 08:34 PM

There is no doubt that this is a scam of humungous proportions - much bigger than Yes Bank or PMC Bank.

The following questions need answers.

  1. Why have only these Franklin funds been affected by COVID?
  2. Why are the Finance Minister and Prime Minister silent on this?
  3. Why is the role of SEBI's complicity in the matter not being probed by the courts?
  4. Why is there no probe ordered on the R. 8000 Cr redemptions from these funds in March/ April?
  5. Why is the media avoiding this issue by non reporting /under reporting of this case and refusing to even call it a scam?
  6. What is the status of the FIR filed with EoW?
  7. Why have the passports of Sanjay Sapre and trustees of Franklin India not been impounded yet?
  8. If Franklin has received 8000 Cr in some of these funds, why does it need to go to SC to return investor's money on a pro rata basis?

Is there a WhatsApp ot Telegram group that has been formed or can be formed under the aegis of CFMA that can collectively put legal and moral pressure on Franklin Templeton? I am willing to take the lead in this.

Col R Mahesh (Retd)

Comments(4)
By Col Mahesh Ramachandran, December 17 2020 01:35 PM
Frankly the SC decision is baffling. They have put the investors in a 'Damned if you Do and Damned if you dont' situation. A YES vote will lend legitimacy to the scamsters and scroundrels masquerading as Trustees of FT, without any idea of when and how much will the investors receive back. A NO vote will mean opening up of the schemes - with or without a cap on redemptions. If it is with a cap on redemptions, then it may be good to vote for. Why did the Honourable SC not order FT to refund the cash positive amounts on pro rata basis to all investors. And why cant FT do this suo moto, like they did for the Vodafone segregated portfolio? Why did the SC not impound the passports of all the FT trustees? Now one is very confused whether to vote YES or NO. The trustees and those responsible for this scam including SEBI personnel and Indian lawyers defending FT will rot in the darkest corners of hell if the investors do not get their dues back.

By Col Mahesh Ramachandran, December 17 2020 01:35 PM
Frankly the SC decision is baffling. They have put the investors in a 'Damned if you Do and Damned if you dont' situation. A YES vote will lend legitimacy to the scamsters and scroundrels masquerading as Trustees of FT, without any idea of when and how much will the investors receive back. A NO vote will mean opening up of the schemes - with or without a cap on redemptions. If it is with a cap on redemptions, then it may be good to vote for. Why did the Honourable SC not order FT to refund the cash positive amounts on pro rata basis to all investors. And why cant FT do this suo moto, like they did for the Vodafone segregated portfolio? Why did the SC not impound the passports of all the FT trustees? Now one is very confused whether to vote YES or NO. The trustees and those responsible for this scam including SEBI personnel and Indian lawyers defending FT will rot in the darkest corners of hell if the investors do not get their dues back.

By Ruchika Tandon, November 20 2020 02:47 PM
In retrospection, neither FT AMC nor Investors got any reprieve from Hon. KHC verdict orders. Cash positive payouts request of investors denied & disposed, rollback of NAV's to prior to 6 schemes closure values denied & disposed, winding-up upheld but declared illegal (?) ; only thing is that unitholders consent votes have to be obtained now and; SEBI needs to take punitive action on the AMC; based on forensic audit report. Next, if schemes must be re-opened then a limit on redemptions would be required per investor per yer - hopefully Hon. KHC will understand this and follow SEBI's guidance on the same.

By Sakthi Ray, November 19 2020 05:13 PM
8. You did not read the KHC judgement verdict doc Sir? Hon. KHC has ordered FT AMC to keep the cash positives safely until final verdict- after unitholders consent vote results are given to court. In case of against winding up vote means FT must re-open all 6 schemes and unitholders need to place 'Redeem Units' orders to get their units encashed into bank. In case vote is in favour of winding-up then, cash positive payouts will be made after sale of all portfolio assets completes and all borrowings and loans paid off fully! In case of UST-USBF and LD funds it will be much faster I feel like within 6 months itself [after closure of these schemes] all payments will be done to investors!!