THIRUVANANTHAPURAM: The Press Council of India (PCI) on Thursday accepted a petition against leading vernacular daily Malayala Manorama for allegedly tricking "thousands of people" in investing with a company the paper had reportedly backed.
Thomas T. George, a petitioner representing the Integrated Finance Company Depositors Association (IFCDA) had filed the petition against being misled in investing with Integrated Finance Company Ltd (IFCL), a Chennai-based hire purchase and leasing firm.
PCI chairman Justice G.N. Ray told reporters here that they have accepted the petition against Manorama at the PCI sitting here. "We need more time to go into this complaint because there are a lot of details that we would have to go through," said Ray.
The petitioner had alleged that thousands of people deposited their savings with IFCL after the company's previous chairman K.M. Phillip in a letter to various depositors categorically stated that Manorama are the promoters of IFCL. Phillip is the brother of the Manorama chief editor K.M. Mathew.
The petition said the IFCL now claims they are unable to return the money, and when depositors approached Manorama officials the latter said they have nothing to do with the company.
"It is rather sad that Manorama is turning its face away now. We deposited with IFCL just because it was backed by Manorama.
"Advertisements of IFCL used to clearly say that they had the backing of Malayala Manorama, MRF Tyres and OEN Connectors," said George.
The Chennai headquartered IFCL has 15 of its 18 branches mostly in Thiruvalla, Pathanamthitta and Kottayam districts of Kerala, where it is believed to hold deposits and bonds worth Rs.2 billion.
Things started going wrong for IFCL two months ago when depositors did not get back their money and in several of the branches irate depositors began arriving in large numbers but had to go back empty handed.
Manorama management had already come out with a statement stating that IFCL is not a Malayala Manorama company legally or morally.
