Deveshwar Granted 15 Days To Prepare Report

Enforcement directorate deputy director K K Kabirpanthi told newsmen yesterday that "Deveshwar has admitted that from 1991 and till just before he took over as ITC chairman, ITC's internal audit department has determined that Fera violations to the tune of $2 million had taken place but they continued till April 1996".

Kabirpanthi said the directorate had given Deveshwar a 15-day notice to carry his own investigations and submit a report.

K Vaidyanath, executive vice-president (internal audit), who was also questioned yesterday, also admitted that violations were committed.

These admissions came during an conducted on Tuesday by the enforcement directorate in Calcutta. This was the third time Deveshwar was interrogated.

 

"The enforcement directorate officials are very professional and thorough in their investigations. I will be cooperating with them in every way," Deveshwar told reporters after his eight-hour grilling session at the directorate office here.

Deveshwar took over charge as ITC chairman on January 1, 1996. Hence Fera violation are purported to have taken place during the first three months of his tenure as chairman.

Kabirpanthi also said that the directorate plans to question BAT nominees on ITC board in the next 15 days "at their convenience". The decision whether to interrogate nominees of financial institutions on ITC's board has not been finalised by the directorate.

Kabirpanthi did not rule out further questioning of Saurabh Misra who headed the leaf tobacco division during this period.

Meanwhile, the department has sent summons to director R P Agrawal and former director (finance) D P Baruah. The directorate will interrogate another ITC official from Hyderabad, Shivkumar, on Wednesday, Kabirpanthi said.

Feroze Rustam Vevaina, ITC's deputy chairman, is expected to be interrogated as soon as he is recovers. He had been hospitalised after being summoned to the directorate for questioning.

The companys shares continued to be battered on the stockmarkets. ITC stock plunged Rs 18.25 to Rs 269 with 2.7 million shares traded at the BSE. Dealers said heavy offloading in the stock by local speculators on the last day of settlement at the National Stock Exchange (NSE) pulled down prices. The share was down Rs 19.60 to 270.40 on the NSE.