Karnataka: High Court to hear FT MF matter on utmost priority

Karnataka: The State High Court (HC) gave a preliminary hearing to the matter related to the wind-up of schemes by Franklin Templeton Mutual Fund (FT MF), and said the matter would be heard on priority in order to complete the hearing within three months, said people privy of the development.

"Karnataka HC considered the matters related to winding-up of six debt schemes of FT MF and issued notices to the concerned parties. The parties are directed to file a counter-statement of objections by July 22, 2020, and answers by July 29, 2020," said a spokesperson for FT MF. He added, "The next hearing is scheduled on July 15, 2020."

Supreme Court (SC) had already directed that cases relating FT MF's move of winding up six of its yield-oriented schemes be heard in Karnataka HC. The SC didn't intervene on Gujarat HC's stay order on the e-voting process that was required to take forward the wind-up process. As the matter was being heard at multiple High courts, FT MF had sought that the cases be heard in a single court through a transfer petition, subject to the Supreme Court approval.

The e-voting process would have given unitholders of Franklin's schemes under wind-up, options on how they wish to take forward the wind-up and scheme asset monetisation process.