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Mauritius route most sought after by OCBs: JPC

"Unscrupulous persons" residing in India were suspected to be operating behind the facade of the Overseas Corporate Bodies, many of which preferred Mauritius as a favourite haven, the Joint Parliamentary Committee inquiring into last year's stock scam has said.

"Some of the OCBs, according to a Sebi (Securities and Exchange Board of India) investigation, had very nominal share capital ranging from $1 to $10,000 and yet their investment in the Indian capital market was very large running into millions of dollars", the report said.

The net outward remittances of 13 OCBs between April 1, 1999 and March 31, 2002 was about Rs 3,850 crore (Rs 38.50 billion), the JPC inquiring into the stock scam and the temporary freeze on UTI's flagship scheme US 64 was told.

The issue was also taken up by the Enforcement Directorate, which had conducted enquiries by deputing a team of officers to Mauritius, the report said.

Two advance copies of the request with regard to the enquiries in respect of First Global Mauritius Ltd and 13 other OCBs were delivered in the office of the director, Economic Crime office at Mauritius on December 7, 2001 after holding several meetings with them.

Though a letter rogatory was also issued from India in respect of First Global Mauritius, the Supreme Court of Mauritius by its order issued in February, 2002, reportedly turned down the request, the JPC was told.

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