NEW DELHI: The Central Bureau of Investigation (CBI) has filed a charge sheet against stock brokers Hitten Dalal and A.D. Narottam and two bank officials for defrauding the Can bank Mutual find in the purchase of Government of India loans worth over Rs 102 crore in the multi crore securities scam case.
The charge sheet was filed in the court of Justice S.N, Variava, special judge, Bombay. The two bank officials who have been charged are Anil M.Narichania, assistant general manager, Can bank Mutual Fund, Bombay, and C.S Rage, an officer of the Bank of Karad, according to a CBI release issued here on Oct.19,
The allegations in the charge sheet relate to two transactions entered into by Narichania on May 27,1991, through Dalal and Narattam for the purchase of Government securities for face value of Rs 58.39 crore and Rs.44.58 crore respectively from the Bank of Karad:
Prompt payment was made by Can bank Mutual Fund and in re tum they got two SGLs transfer forms which when lodged with the public debit office of the Reserve Bank of India (RBI) were not honored due to lack of sufficient securities in the concerned SGL account of the Bank of Karad Ltd, the release said.
Further investigations revealed that on May 27,1991, Narichania entered into a Sale transaction in respect of these securities with the, Citibank through Hiten Dalal and issued SGI transfer forms favoring Citibank, “Naturally these were dishonored when presented since there was no sufficient balance in the SGL account of the Can bank Mutual Fund,” the re lease said,
According to the release, during the course of investigations, the CBI had seized and scrummed 6,159 documents and examined 92 witnesses.
Article extracted from this publication >> October 29, 1993
