New Delhi: CBI has charged six former employees of SBI Mutual Fund of conniving with Ketan Parekh to buy shares of Padmini Technologies and causing a loss of Rs 60 crore to the fund house.
On February 12, 2000 Ketan Parekh's Triumph International made a presentation before the SBI MF Investment Committee for a preferential allotment of Padmini Technologies shares. Based on this presentation team member Sonia Sharma prepared a research report. It was this report that formed the basis for all investment decisions.
The CBI chargesheet filed in a Mumbai Sessions Court recently alleged that the report was prepared as a part of a larger conspiracy. The chargesheet alleged that an audit firm, which later examined Sonia Sharma's report found it to have suppressed negative factors and did not even verify the company's debt with banks and financial institutions.
The Investment Committee then met to discuss the purchase of shares. The offer was allegedly rejected by the board including then Managing Director Niyamatullah. However, the CBI chargesheet says later that same day, Sandeep Sabharwal filed a fresh notice in favour of accepting the offer allegedly without any proper reason. This time a decision was taken in favour of the allotment and Niyamatullah approved it.
The purchase of the first 10.2 lakh shares were approved on February 12, 2000, three days after the presentation. The chargesheet alleges that even though the approval was yet to be executed, a further 13 lakh shares were aquired three days later.
All the while, one team member Ajit George maintained that the investment was not a good decision. He even made an observation on the discrepancies of the recommendations made by Sandeep Sabharwal.
CBI alleges that Sabharwal fraudulently approved the proposal for purchase of the shares. It further says that the former SBI MF Head, Niyamatullah, fraudulently approved the proposal for investment of shares of Padmini Technologies on the basis of a research report and discussion sheet that had been prepared to cause wrongful gains.
It says that Sonia Sharma prepared the research report, which formed the basis of investment. The report is allegedly prepared in pursuance of the conspiracy and abusing her official position. Rajat Jain then was CIO and Head of the investment team. The chargesheet alleges that all proposals were routed through him.
Ajay Bodke, who at that time was a Fund Manager, also allegedly put up a proposal for purchase of the shares for three different schemes of SBI MF. The CBI alleges that he relied primarily on the research report that had been prepared by Sonia Sharma.
The VP of Investment Committee at that time, P P R Upadhyay has also been charged with joining the conspiracy.
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