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CBI pulled up in securities scam

The Central Bureau of Investigation was today pulled up in the securities scam, in the case involving the Standard Chartered Bank and leading stockbroker Bhupen Dalal.

Coming down heavily on the investigating agency for non-compliance of the special court order, Justice S N Varaiva asked it to complete its fresh investigations by September 15.

He directed the CBI to strictly follow the orders of the court, which were delivered on October 8 and 9, 1996.

In 1996, the court had asked the CBI to investigate the role of David Gardiner, Ravi Iyer and R Kannan, all senior StanChart officials.

The court further stated that the minutes of the weekly and fortnightly meetings of the Bank's senior officials should be examined by the CBI.

The judge, however, disposed of Bhupen Dalal's application. It did not agree with his prayers that the Bank did not lose all the money that it claims to have lost and large funds came back to its coffers by way of a reverse inflow of funds.

Reacting to a plea made by StanChart counsel K G Menon that the court had no powers to order a reinvestigation, Justice Variava observed, ''You had earlier argued that the court has the powers to order a reinvestigation. But now you are opposing the same since it is inconvenient to your client.''

The judge said that, as per a Supreme Court judgment of 1997, the court has powers to order reinvestigations at any stage in the case."

UNI