Cbi Uncovers Crb Link To Granite Firm

Sleuths from the Central Bureau of Investigation (CBI) have uncovered an investment of Rs 22 crore by the scam-tainted CRB group in a granite unit near Bangalore Jaihind Granite Industries Ltd and found documents that reveal that banks and financial institutions have an Rs 8 crore exposure to the firm.

We are at a loss to understand how Sebi missed this investment while drawing up a list of companies of the group despite the fact that Jaihind is a listed company, said a CBI official.

Jaihind Granite, which has its corporate headquarters in Mumbai and its registered office in New Delhi, has been in existence for almost a decade. The company issued shares at a premium in May 1993 to mop up Rs 12.78 crore for its Rs 22 crore expansion project.

 

Jaihind Granite, a member of the Bhansali group, has a paid-up equity of Rs 11.40 crore of which the Bhansali group companies hold around 52 per cent. CRB Capital Markets Ltd, Ravitej Exports Ltd, Spectrum Global Financial Trust Ltd and Shree Bhikshu Foundation Ltd held the equity of the promoters in the companmy.

Chain Roop Bansali and his wife Manjula who are said to be behind the financial irregularities in the CRB group were directors at Jaihind Granite, while F C Bhansali was the chairman. Others on the board of Jaihind Granite were stockbroker P K Kothari, Krishna Mehta of Mumbai and Hari Sadan Mazumdar. K C Saxena was the financioal advisor.

Indian Overseas Bank, which had appraised the project of the Bhansali group as well as Indian Bank, had exposures worth Rs 1.8 crore in the company. Industrial Development Bank of India had lent term loans worth Rs 4.5 crore to the granite company.

Karnataka State Industrial Investment Development Corporation had granted a term loan of Rs 1.20 crore to the company, while the Karnataka State Finance Corporation is saddled with Rs 1.5 crore worth of non-convertible debentures.

CBI and RBI officials believe Canfin Homes Ltd, a wholly-owned subsidiary of Canara Bank, has a sum of Rs 1 crore and the Church of South India Trust Rs 30 lakh stuck with the group.

Meanwhile, RBI officials have started gathering information on the exposure of various banks, financial institutions and term-lending agencies in Karnataka.

Sources say the total exposure of Karnataka investors, institutions and banks would be over Rs 22 crore in the CRB group.

CBI to attach land in Jaipur

NEW DELHI:

The CBI is taking steps to attach about 300 bighas of land in Jaipur, allegedly belonging to C R Bhansali, the main accused in the multi-crore financial scam, even as hectic efforts were being made to track him down, agency sources said today.

The land is valued at over Rs 15 crore, the sources said, adding that this enhances substantially the value of assets owned by Bhansali and his group. The investigating agency had intimated the Interpol and was in constant touch with authorities in Hong Kong and other places to nab Bhansali, the chairman of the crb group, they said. Bhansalis group had an office in Hong Kong.

No more arrests have been made so far by the CBI in connection with the scam, voluminous documents seized during the raids were being scrutinised, they said.