Court Urged To Set Up Separate Agency To Probe Scam

A proposal to probe the multi-crore CRB scam by an independent agency other than police and the Central Bureau of Investigation (CBI) was yesterday mooted before a division bench of the Mumbai High Court.

The matter arose out of a public interest writ petition filed by Investors Grievances Forum (IGF), praying for court protection to unsecured small investors and urging several other measures to safeguard the interests of small depositors.

Chief Justice M B Shah and Justice Ranjana Desai will decide on the matter on July 24 and have meanwhile directed Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi), finance ministry, CBI, police commissioner and other respondents to the petition to file their affidavits in reply.

 

Soli Cooper, additional solicitor-general and counsel for Sebi, submitted that CRB scam was a serious issue concerning small investors and opined that a retired high court judge may be appointed to probe the matter.

However, the judges felt a retired high court judge could possibly supervise the probe, but he may not have the expertise to go into the intricacies of financial deals and transactions.

The chief justice then asked additional advocate-general of Maharashtra, Bal Apte, who was appearing on behalf of the police commissioner, whether he could suggest an independent agency to probe into the scam and also explain his stand in the matter.

Apte said that regulatory agencies had not discharged their duties properly and should come out with full facts.