In April 2020, Franklin Templeton Asset Management India Private Limited and Franklin Templeton Trustees Private Limited had announced to wind up six mutual funds on the basis of low liquidity. This showcased a mere about three lakh investors to be affected by such a decision.
Gujrat High court had put a stay on Franklin Templeton’s mutual fund e-voting process for winding up of the schemes. Franklin Templeton had filed a petition in Supreme Court challenging to the order by Gujrat High Court. A division bench of Chief Justice Abhay Oka and Justice Ashok S Kinagi has ordered the Fund house to submit all the furnished documents to the advocates appearing on behalf of the petitioner. It has also mentioned that if any of the petitioners have any kind of objection, then they should file a memo report on record in order to list the case again for consideration upon their objection. And if anyone has no objections they can file a memo to the effect.
The bench first heard the counsel in a petition filed at the Delhi court subsequently followed by Gujrat and Madras High Court. The petitions were transferred to the Karnataka High Court on the order of the Hon’ble Supreme Court on June 19 for fresh hearings and disposal with a deadline time period of three months. The bench began hearing of the matter on daily basis through video conferencing from August 12. The judgment was reserved on September 24 by the Karnataka High Court by hearing of all the facts from both parties.