When contacted by the worried depositors, the bank officials told them that Morepen provides insufficient funds towards the fixed deposit interest and the warrants are honoured on a first-come-first-serve basis while dishonouring the balance.

On the other hand Morepen officials cite the company’s advertisement in dailies early this month announcing its decision to switch over to the public sector Corporation Bank and the issue of new interest warrants.

“After our advertisement, ICICI Bank started returning the interest warrants despite holding sufficient balance in our account. We are in the process of dispatching new interest warrants from the Corporation Bank account to our fixed deposit holders,” assures a Morepen official. The company is changing over to a public sector bank, as it is dissatisfied with the services of ICICI Bank.

Enquiries reveal that the differences between Morepen and ICICI Bank started in September 2002 itself. When Morepen asked ICICI Bank to adjust the credit balance in its account towards meeting its December 2002 fixed deposit interest commitment, the latter refused to that and started bouncing the cheques, thus creating a scare amon the investing community.

Now, the investing community has reason to fear what with many corporates vanishing with their hard-earned money.