Additional information provided by the company subsequently has been incorporated at the end of the report The Central Bureau of Investigation (CBI) has initiated a crackdown on public servants who were allegedly involved in the MS Shoes scam. The premier investigative agency proposes to chargesheet nine persons, including Securities and Exchange Board of India (Sebi) and SBI Capital Markets officials. MS Shoes promoter Pawan Sachdeva and the company, MS Shoes East Ltd, will also be chargesheeted by the Bureau.
The CBI has already sought formal approval from the Centre to prosecute the public servants. According to government to sources, it will take another one or two months for formal approval to be given to the CBI.
The list of public servants prepared by the CBI includes Sebi executive director M D Patel, Sebi division chief Usha Narayan and Sebi officer R Mohan.
Besides, the CBI also plans to chargesheet SBI Caps general manager P S Mehrotra, SBI Caps manager Neetika Juneja, project executive Ashish Bansal, assistant general manager Ajay Swaroop, assistant general manager Neeta Sahai and SBI Caps consultant S Venkitaraman.
CBI director Joginder Singh reportedly gave his approval last week to proceed with the chargesheets.
It has taken the CBI over two years to complete its investigations in the MS Shoes scandal. The CBI had filed FIRs in this case in 1995 against Sachdeva and Sebi and SBI Caps officials, alleging that the composite rights-cum-public issue of the company had violated many guidelines, cheating investors in the process.
Following the registration of FIRs against the company and various individuals, the CBI had also raided the offices of MS Shoes and the residences of Sebi and SBI Caps officials.
Central Bureau of Investigation filed a closure report on the MS Shoes case in September 1998, which was accepted by the court.