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Little progress in cases against Dilip Pendse

BS Corporate Bureau

A year after the Tata Finance Ltd scam broke out, hardly any of the 11 complaints filed against Dilip Pendse, the company's former managing director, and others by the Tata group with various law enforcement agencies, have shown any progress.

Pendse has been charged with financial mismanagement at Tata Finance, but none of these charges has yet been proved.

Though a first information report was filed on August 6, 2001 against Pendse and others charging them for criminal breach of trust, forgery, falsification of accounts and cheating, no charge sheet has since been filed. The joint commissioner of police (crimes), economic offences wing (Mumbai Police) is yet to arrest anyone as per this complaint.

A subsequent FIR filed on October 31 last year also did not make any progress, while no action has been taken yet despite providing relevant information and clarifications as to violation of Section 451A of the Reserve Bank of India Act, 1934, by Inshaallah Investments and India Emerging Companies Investments with the involvement of Pendse.

No action was also taken against a complaint filed on December 3, 2001 for violation of the Sebi (insider trading) regulations, 1992 by Pendse before the chairman of the market regulator.

Tata group officials, when contacted, said they were dismayed that little progress has been made in charges filed against Pendse and his associates.

The submission of report of the committee on insider trading in connection with violation of Sebi (insider trading) regulations, 1992 by JE Talaulicar before the Sebi head also did not elicit any action.

Against the complaint registered on December 24 about unregistered companies owned and controlled by Pendse (like Anjudi Property and Investments, Nalini Properties, Khudah Gawah Investments and Dhanoo Properties Investments) doing NDFC business, the RBI has not take any action.

Sources said that executives at the investor services cell of the Bombay Stock Exchange were yet to co-operate, despite confirmation of trades in Global Telesystems put by Niskalp Investment and Trading Company, Inshaallah Investments and India Emerging Cos Investments.

An interim relief granted by the High Court on June 10, 2002, against a civil suit filed on May 17, 2002 against Pendse and others claiming damages of Rs 4.24 billion. Next hearing is scheduled on September 9, 2002.

An FIR was filed on May 30, 2002 against Pendse and Jhunjunwala Stock Brokers charging them for criminal breach of trust for undertaking illegal carry forward transactions in Global Telesystems shares and causing wrongful loss to Niskalp Investment and Trading Co, but no FIR has been registered by the joint police commissioner.

No action was taken against the subsequent FIR, while complaint for undertaking illegal and unauthorised carry forward transaction in Global Telesystems in violation of Sebi Act and Securities Contract Regulation Act by Pendse did not get any response from the Sebi chairman.

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