NEW DELHI: The Central Bureau of Investigation has not reexamined the Goldstar case despite its assurance to the Joint Parliamentary Committee in October this year.
The latest status report sent to the JPC on Nov, 30 makes it evident that the Bureau has done precious little to fulfill its commitment. The report merely said that the irregularities by Goldstar had been referred to the Company Law Board for “appropriate action.”
This is virtually the same stand that the then CBI Director S.K.Datta had taken when he had deposed before the JPC in October last.
The JPC had drawn the attention of the CBI1o various irregularities in advancing the Rs 2 crore loan by Hiten Dalal to Goldstar, its utilization and the adverse comments the Securities & Exchange Board of India (SEB) had made On the deal, It was in this context that Mr. Datta had assured parliamentarians that the agency would have the case reexamined, Goldstar’s promoter and Director is Prime Minister P, Y.Narasimha Rao’s son, P.V.Prabhakar Rao. While the Goldstar Steel & Alloys had claimed that it was a personal loan for Managing Director Krishna Mohan to enable him to purchase rights issue of the company, the CBI had found during the course Of its investigation that the money had been deposited in the general account of the company and head, in fact, been used to discharge its liabilities, In the latest report to the IPC, CBI has stated that process of establishing criminal liability of persons, including the Goldstar Managing Director, was still in progress. It has, however, maintained that it was for the Company Law Board to initiate action. It is no secret that the former Director of the GBI $.K, Datta was quite keen to give a clean chit to P.V.Prabhakar Rao and had also Prepared a note in this regard. Subsequently, however, the note was never put up.
The CBI status report is also silent on the JPC’s criticism of deJays in registration.
Article extracted from this publication >> December 10, 1993
