Imagine this. You invested in a bond that was set to mature in June. You even planned your life around the principal you were supposed to get back. It was guaranteed by a state government, after all! Sadly, six months have gone by and you're still waiting. That's not all. While you are waiting for your funds, you learn that some other investors in the same bond got their money back in full and on time.
This is what happened to 68-year-old Rakesh Seksaria, who invested ₹10 lakh in Andhra Pradesh Power Finance Corporation Ltd (APPFCL) bonds. The 9.4% bond was set to mature in June 2024, but six months have passed and he hasn't received anything. He said his family invested ₹70 lakh in the bond issue as it was guaranteed by the state.
Delhi-based chartered accountant Manoj Agarwal, whose father, 65, had invested ₹20 lakh in the bond, is hit, so is R.K. Tandon, 71, who put in ₹10 lakh.
"Despite trying repeatedly, I've not been able to meet the government officials," said Agarwal. "Interest payments used to be delayed by a month or two but now when the bonds have matured, they have not said anything for the past six months."
Cracks started appearing in the state government-backed bonds after Telangana carved out of Andhra Pradesh. Now, the two states are fighting over how to bifurcate the bond commitments. Of the seven bonds issued by the erstwhile Andhra Pradesh, the June 2024 one was the last to mature.
Emails sent to APPFCL, the Telangana government, and SBICAP Trustee Company Ltd, the bond's trustee, remained unanswered.
This story is from the December 25, 2024 edition of Mint Ahmedabad.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 25, 2024 edition of Mint Ahmedabad.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
We could expect East Asia to spring some surprises in 2025
China, Hong Kong and Vietnam will be under watch for a reason
Inflation targeting: It should not constrain Indian manufacturing
Monetary policymakers should analyse the price dynamics of the entire basket of items that make up India's national income
Full of sound and fury: What the Bard may say of 2024
From central bank actions to Trump's ideas, there was plenty that inspires a Shakespearean look-back
All that glitters is not an auction of pawned gold
Gold auctions have risen lately. A sign of distress? Partly. These are more likely the result of lenders sprucing up their gold-loan portfolios after RBI frowned on risky lending practices
Trump's tariffs will not eliminate the dollar's exorbitant privilege
Exporters to the US may want to shift trade into other currencies but the dollar won't be dethroned
We must approach tech transformations with due care
How we deal with technology is getting highly complex. It's the reason we must exercise fine judgement
Simplifying estate planning: The value of expert guidance
Engaging a professional like estate planning attorney who has expertise in her/his field, is very important.
INTERNATIONAL ETFS ARE TRADING AT A PREMIUM: WHAT SHOULD INVESTORS DO?
Most successful investors remain informed, agile, and approach investments strategically
A BONE THIEF IN UKRAINE'S BACKYARD
Ukrainian officials say the Russians continue their efforts to repatriate the remains of Soviet war dead
AP split leaves state-backed bondholders high and dry
Investors await payments as Andhra and Telangana dispute AP power bonds post-bifurcation