Cbi Nails Subramanyam In Cyberspace Deal

The government today started clean-up operations at Unit Trust of India (UTI) with the Central Bureau of Investigation (CBI) raiding the official and residential premises of ex-UTI chairman PS Subramanyam, executive directors MM Kapur and SK Basu and general manager Prema Madhuprasad over alleged misappropriation of funds to the tune of Rs 32.8 crore.

The investigative agency has filed a first information report (FIR) against the ex-UTI chief and the three UTI executives on charges of corruption and cheating. A CBI official said Subramanyam has been taken to Kitab Mahal headquarters of the agency in Mumbai for interrogation. The interrogation would continue through the night. When asked if there would be any arrests, he refused to comment.

A 200-strong CBI and police contingent, which swung into action at about 6 in the morning and continued its operations till late in the day also raided the premises of share broker Rakesh Mehta of Renaissance Securities Ltd and the directors of Mumbai-based Cyberspace Ltd, said CBI spokesperson SM Khan in a press briefing today evening.

The economic offences wing of CBI in Mumbai has unearthed documents indicating conspiracy and misappropriation of public funds of Rs 32.8 crore, he said. CBI has revealed that UTI subscribed to a private placement of 3.45 lakh shares of Cyberspace Ltd at Rs 930 per share despite its fund managers and equity research cell recommending against the subscription. SBI Capital Markets and UTI Securities acted as