Daily we see many advertisements promising high returns for investing in teak and sandalwood plantations after 15 to 20 years and many people buy into them. There is a listed company and few other non listed companies in this business.

After being lured by the promise of high returns from the third year of investment by an unlisted company in Horana which is into a rambutan plantation, I invested.

For the third and fourth years since investment they paid the promised amount but this year they have started defaulting. After promising Rs. 54,000/= net for the third harvest now they say they can pay only Rs. 14,500/= net.

As per the annex submitted at the time of signing the agreement, estimated marked price of a rambutan for the third year of harvest, that is this year is Rs. 5/=. So the estimate is correct but they do not want to pay the promised amount.

In the case of default like this what is the defence or protection the investors have?

Isn’t it time the regulators act against these unlisted companies and ensure that people who advertise in newspapers and canvass investment in offices are capable of delivering on their promises.

The investors must at least form an association to check on the performance of the company rather than waiting individually for 15 years and suffering the fate of those who deposited in Sakvithi and Golden Key.

Regulators and investors its time to act.