NEW DELHI, June 20: An image conscious Korean giant, Daewoo, today distanced itself from CRB Caps Limited, which has allegedly defrauded investors to the tune of Rs 1,200 crore, while pleading before the Delhi High Court to defreeze its bank accounts in India.

Counsel for the Korean company, which figures in the Fortune 500, told Justice S N Kapoor that the Korean company wants to invest Rs 1.5 billion in India in the coming year and that the investment plans should not be jeopardised because of Daewoo Finance Ltd's bonafide transactions with CRB Caps.

It even agreed to replace CRB Caps chief C R Bhansali and his wife Manjula Bhansali in the board of directors. The official liquidator suggested the names of Meera Saxena and A C Tiwari, both senior retired audits and accounts officers. The court will pronounce its order on Monday.

Counsel for the Daewoo K T S Tulsi, said, ``it is our misfortune that they (CRB Caps) had invested in our company.''

Between March 1992 and February 1995, CRB Caps had invested Rs 11.12 crore to have 50 per cent equity in the Daewoo Finance Ltd. But on September 19, 1996, the Korean company increased its stake to 75 per cent by buying 26 per cent share of CRB Caps. At present, the official liquidator's counsel, B N Nayar, alleged that the liability of the company towards CRB Caps was Rs 4.04 crore.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.