BOMBAY,(PTD):The Central Bureau of Investigation (CBI) team lead by its joint director (economic offences).
Madhavan left for the Indian “capital New Delhi from Bombay after completing preliminary enquiries into the Rs 622 crore scam in the state bank of India (SBI) over government securities transactions.
Madhavan will apprise his director Vijay Karan of the findings of the seven-member CBI team that went through the accounts books of the SBI at its corporate headquarters in Nariman point in Bombay May 15 CBI sources said.
The CBI is likely to file the first information report (FIR) the last week of May after consultations with the CBI director.
According to banking sources here the investigating agencies have found prima facie evidence pointing to the alleged nexus between some officials in the banking sector and Harshad Mehta the bull operator on the Bombay stock market that led to the irregularities in securities” transactions. The CBI sources however refused to comment on this point.
CBI sources said the president of the Bombay Stock Exchange (BSE) G.B.Desai met the CBI joint director Madhavan to discuss Harshad Mehtas “pending payment problem.”
Mehia had during his meeting with Madhavan pleaded that his accounts and those of his family members numbering 25 be defreeze. However his request was turned down by the CBI.
The BSE governing board May 22 decided to extend the current settlement period in the specified group up to May 28. Settlement No.3 could not take place despite trading of the specified shares held in the name of Jyoti Mehta wife of Harshad Meta.
Meanwhile the Anz Grindlays Bank which had earlier shown some difference in its books on securities transactions said in a release that the bank had reconciled all bankers receipts (BRS) held by it and therefore “there is no reason to anticipate losses arising from BR shortfalls or any other associated transaction.”
Article extracted from this publication >> June 5, 1992
