Ownership Confusion Hampers Probe Into Crb Mutual Fund

The investigations linked to the CRB Mutual Fund are at a deadlock with fresh confusion regarding the ownership of assets of the mutual fund scheme. This has resulted in the regulators and investigating agencies not having specific details regarding the list of unitholders of the Arihant Mangal Scheme of CRB Mutual Fund.

The provisional administrator, A K Menon, appointed by the Bombay High Court (to manage the assets of CRB Mutual Fund), has not been able to access documents related to CRB Mutual Fund. He told Business Standard that he has initiated action to move Bombay High Court today to vacate the seal on the assets of CRB Mutual Fund.

 

The solicitors for the administrator, Pravin Mehta and Mithi & Co, are in the process of filing a petition in the Bombay High Court explaining the present state of affairs Among things sought by the administrator include suitable directions for opening of CRB Mutual Fund office and inventory of documents, for engaging services of chartered accountants for auditing and reauditing the account of CRB Mutual Fund, seeking directions against former officers C G Parekh and Somnath Roy regarding affairs of the mutual fund and the role of CRB, remuneration for the administration, employment of the staff, legal and administrative expenses.

Says Menon: We are not able to get hold of any papers from the CRB office in Mumbai as the liquidator has sealed all the property owned by CRB. The list of unitholders of the Arihant Mangal Scheme is not known to us as it is not possible to enter the building. We will request the High Court to give us further directions on the issue.

According to Menon, it is not known what options exist before the Bombay High Court. It is for the first time that it is not clear as to how the request will be accepted by the high court. The purview of the liquidator is only for assets of other CRB group companies and not for the mutual fund.

Senior Sebi officials admitted to Business Standard that there was no clarity on the issue. The list of mutual fund unitholders is not available with us. It is only after the administrator is allowed to access papers related to the CRB Mutual Fund it can be found out. The Kalyaniwala report only reveals the breakup of investment. However, it does not contain the list of unitholders.

The issue of names of unitholders assumes significance as the Kalyaniwala Mistry report, which Sebi received, indicated that large corporates invested Rs 229 crore in the mutual fund.