NEW DELHI: The Central Bureau of Investigation (CBI) has been flayed in a draft chapter prepared by the Joint Parliamentary Committee (PC) Chairman Ram Niwas Mirdha for withholding vital information with the JPC about cash withdrawals made by broker Harshad Muhta.

The Committee, in fresh amendments to its draft report, has retained its earlier criticism of Finance Minister Manmohan Singh and the Finance Ministry for their failure to check the scam. The Critical remarks against former Petroleum Minister B.Shankaranand have also been retained. The JPC has decided to present the final report in Parliament on Dec.17. This means the Committee has decided against calling fresh witnesses to depose before it.

The latest version of the draft report indicates that Mirdha has not entirely gone along with certain ruling party members of the JPC like Mani Shankar Aiyer who wanted this section diluted and responsibility pinned down on past Finance Ministers besides Dr. Singh. While dissenting notes may still be appended, the final report of the JPC could well contain harsh remarks against a host of official agencies for their inability to apprehend the culprits behind on any of the allegations. It is learnt that the CBI Director K.Vijaya Rama Rao met Mirdha shortly after the Committee met on Tuesday. The note on the alleged payment to the Prime Minister first describes the claims made by the Bombay broker and what he had told the JPC on two separate occasions, the note then describes how various Government bodies and officials had refuted his claims.

These included the Prime Minister’s Office, the Cabinet Secretariat, the Delhi Police, the PM’s aide R.K.Khandekar, Sunil Mittal, Mohan Khandelwal and officials of the Finance Ministry like Kamal Pande and Paul Joseph.

The note then provides the CBI’s explanation as to why the agency could not verify Harshad Mehta’s so-called official and hence could not make out a criminal case under laws like the Prevention of Corruption Act, the Indian Evidence Act and the Criminal Procedure Code. The draft chapter has provided a number of instances of the absence of coordination among the various agencies that is besides the CBI, the Central Board of Direct Taxes and the Directorate of Enforcement. It has also highlighted the sharp differences of opinion between former CBI Director S.K_Datta and former Joint Director K.Madhavan about the manner in which the foreign connection in the scam was to be investigated.

Besides the above note and the draft chapter on the investigative agencies, Mirdha also circulated a note on a set of amendments suggested by a ginger group within the JPC which were subsequently modified by the Chairman.

These included the PMO, the Cabinet Secretariat, the Delhi Police, the PM’s aide R.K.Khandekar, Sunil Mittal, Mohan Khandelwal and officials of the Finance Ministry like Kamal Pande and Paul Joseph.

Article extracted from this publication >>  December 10, 1993