Cbi Frames Charges Against Bhansali, Top Sbi Officials
The Central Bureau of Investigation (CBI) yesterday registered a case against CRB Capital Markets, naming CRB chairman C R Bhansali and top State Bank of India (SBI) officials as accused. However, no individual SBI official has been mentioned in the first information report (FIR).
The financial scandal involving CRB Capital Markets has thus taken a new turn as the countrys largest bank has now been drawn into the controversy. SBI chairman MS Verma was not available for comments.
Ironically, the naming of the SBI officials in the FIR followed a complaint by some officials of the premier bank, said CBI sources. But the CBI moved in against the SBI officials as it felt that the complaint was lodged to save their own skins.
CRB had a facility with the SBIs Mumbai branch by which it would make payment of brokerage, interest or principal. As per the normal procedure, four days prior to which the payments were to be made, the company had to make advance upfront payments to the bank. However, from January onwards, many repayment warrants were made without upfront funding. Sources say the amounts withdrawn run into several crores.
Sources add that substantial portions of the money were routed through various companies run by friends and relatives of Bhansali across the country, and then parked in CRB. These companies include Mahapragya Constructions, Chamatkar Investments, R K Credit Capital Company Ltd, Red Stone Properties Private Limited, Preksha Builders, Bahubali Commercial Company Limited, Oswal Commercial Limited, Hyundai Financial Limited, CRB Securities Limited, and CRB Resources Limited.
The SBI is alleged to have hushed up the matter by taking over CRB property in Jaipur worth Rs 25 crore. Bonds were secured on the assets of the company which were appropriated by the Bank. At the time of reporting, no SBI official was available for comment.
Depositors of CRB Capital Markets Limited (CRB) yesterday approached the Economic Offences Wing of the Bombay Police to register a case against the company.
While no complaint was registered, the police officials assured the depositors that they would look into the matter to ascertain that the case came under their purview.
Meanwhile, the RBI has decided to file a petition in a New Delhi court seeking the winding up of CRB Capital Markets Ltd following the failure of the NBFCs chairman, C R Bhansali, to respond to the central banks notice to appear before it by Monday.