MUMBAI, June 2: Even as regulatory agencies like the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) continued the exercise of passing the buck over fund diversion by various CRB group companies and issuing of bank licence, 15 more companies floated by C R Bhansali of the CRB group for fund diversion have come to light.

With this, 53 companies floated by the group have so far surfaced. In a letter to commercial banks, Central Bureau of Investigation (CBI) which is probing the Rs 932-crore scam, has alleged that funds raised by CRB Capital Markets have been fraudulently diverted to other CRB group companies. CBI has asked banks to freeze all the accounts of Bhansali and the CRB group.

CRB Mutual Fund which collected Rs 229 crore through its Arihant Mangal scheme later diverted part of this money through private placements to CRB group companies. Of the 229 crore, only an amount of Rs 6 crore has been raised from the public while 223 crore had come in from 61 big companies. ``It was a quid pro quo arrangement. While these companies chipped in funds when CRB scheme opened for subscription, the understanding was that this money will be later used to rig up the share prices of these companies. However, this money was diverted to other CRB companies,'' sources said.

It is believed that the CRB group had floated around 100 firms for diverting funds collected through fixed deposit, mutual fund and public issues. The identity of 15 CRB group companies which came to light on Monday include C Amco Developments Ltd (Calcutta), Daewoo Finance Ltd (Bombay), Sunlight Holding Pvt Ltd (New Delhi), B S Commercial Company Pvt Ltd (Calcutta), Chefair Finance & Resources Pvt Ltd (Calcutta), Esquire Industries Ltd (Calcutta), Sidha Resources Pvt Ltd, (Calcutta), CRB Resources Pvt Ltd (Calcutta), Oswal Commercial Ltd (Bombay), Ashirward Commerce Pvt Ltd (Bombay), Sidh Properties Pvt Ltd (New Delhi), Bhaubali Commercial Company Ltd, Zerry Exim Pvt Ltd (Calcutta), Vibgyor Resoures Pvt Ltd (Calcutta) and Eglucon Equity Services Ltd (Calcutta). Most of these companies were floated to divert public funds raised through FDs, mutual fund and equity issues.

Sebi has decided to cancel CRB's registration to act as merchant bankers, registrars and share transfer agents, share broking and custodian. The stock exchanges have already suspended trading in CRB shares. Sebi is also looking at ways to salvage CRB Mutual Fund

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.