Ex-CDSL MD demands Rs 1 cr relief for ouster

Raut Vijay, the current managing director of CDSL, said, "We have received the letter from Daga. The board would go through the entire matter and decide accordingly."

Prior to joining CDSL in November 2001, Daga was the executive director (business development) at Unit Trust of India (UTI) during the CSE payment crisis. Broker Ketan Parekh made huge share purchases through his associates before March 2001, with CSE-listed DSQ Software being a favourite.

 

But he failed to provide funds amounting to over Rs 150 crore. This led to a huge payment crisis and affected the share prices across the country. An internal inquiry of UTI found Daga guilty and he was subsequently removed from his CDSL post. UTI also purchased the shares of DSQ Software.

The SS Tarapore committee appointed by the government in October 2001 had indicated UTI's involvement in the CSE payment crisis. The Tarapore panel pointed out that UTI's investment decision in the technology company was a violation of its mandate and against the interests of the unit holders.

An internal inquiry conducted by UTI after Daga joined CDSL also proved his involvement in the investment decision vis-a-vis DSQ Software. UTI accordingly advised the three sponsors of CDSL