Banks Asked To Freeze All Bhansali, Crb Accounts
The Central Bureau of Investigation (CBI) has asked all commercial banks to stop all operations in the bank accounts of C R Bhansali, Manjula Bhansali, other family members of Bhansali and all CRB group companies and to furnish details of these accounts to it.
CBI's note has been circulated to all the banks which are now running a detailed check in all their branches to identify and stop operations in such accounts, according to the chairman of a leading nationalised bank. This step is being taken as part of the order for seizure of property under Section 102 of the Code of Criminal Procedure, 1973.
CBI note alleges that the funds raised by CRB Capital Markets Ltd, the flagship of the CRB group, have been fraudulently diverted to other CRB group companies. According to the note, a criminal case has been registered under Section 120 B read with section 420 IPC and Section 13(2) read with Section 13(1)(d) of the PC Act 1988 against Bhansali and others and is being investigated by CBI.
CBI, it may be mentioned, has set up a coordination committee of regulatory and investigative institutions to conduct detailed investigations into the CRB scam, the entire amount of which is pegged at Rs 1,000 crore. The committee also consists of the Securities and Exchange Board of India and the Reserve Bank of India, together with other investigating agencies.
According to CBI, the total liability of the CRB group has been put at Rs 931.99 crore, which includes funds from UTI, the Gujarat government, inter-corporate deposits, mutual fund operations and through initial public offers.
Meanwhile, various regulatory authorities have come under the fire following the revelation of the irregularities committed in the group. The finance ministry is believed to be unhappy with the way the Securities and Exchange Board of India (Sebi) handled the entire controversy.
However, Sebi chairman D R Mehta dismissed the criticism by saying that Sebi had unnecessary been dragged into the controversy. He pointed out, Sebi is not the regulatory body for NBFCs and issues concerning deposits. However, he added that the market watchdog had initiated action against CRB Mutual Funds and CRB Capital Markets as a precautionary measure.