Government of India
Ministry of Finance
18TH PROGRESS REPORT ON THE ACTION TAKEN
PURSUANT TO THE RECOMMENDATIONS OF
THE JOINT PARLIAMENTARY COMMITTEE ON
STOCK MARKET SCAM AND MATTERS RELATING THERETO
June, 2012
18TH PROGRESS REPORT ON THE ACTION TAKEN
PURSUANT TO THE RECOMMENDATIONS OF
THE JOINT PARLIAMENTARY COMMITTEE ON
STOCK MARKET SCAM AND
MATTERS RELATING THERETO
June, 2012
.
INTRODUCTION
The Report of the Joint Parliamentary Committee on Stock Market Scam and matters relating thereto was
presented to the Parliament on 19th December 2002. In Para 3.31, the JPC recommended that the Government
should present its Action Taken Report to the Parliament within six months and, thereafter, a Progress Report every six
months until action on all the recommendations has been fully implemented to the satisfaction of Parliament. The
Government submitted the Action Taken Report to the Parliament on 9.5.2003. Ist Progress Report was presented in
the Lok Sabha/Rajya Sabha on 12.12.2003 and 16.12.2003 respectively, 2nd Progress Report on 10.6.2004, 3rd on
09.12.2004, 4th on 29.7.2005, 5th on 20.12.2005, 6th on 23.05.06 and 7th on 19.12.2006 and 8th Progress Report
was placed in the Parliament Library on 22.5.2007 and was presented to Lok Sabha/Rajya Sabha on 17.08.2007, 9th
Progress Report was presented on 07.12.2007 & 10th Progress Report was placed in Parliament Library on during
May, 2008, and was presented to Lok Sabha/Rajya Sabha on 24.10.2008, 11th Progress Report was presented on
16.12.2008, 12th Progress Report was presented on 09.06.2009, 13th Progress Report was presented on 18.12.2009,
14th Progress report was presented LS/RS on 7.5.2010 and 15 Progress report was presented LS/RS on 9.12.2010.
16th Progress Report was placed in the Parlaiment Library on 8.6.2011/21.6.2011 and was presented to Lok Sabha/
Rajya Sabha on 5.8.2011. 17th Progress Report was presented to LS/RS on 7.12.2011.
2. JPC had made 276 recommendations/observations/conclusions. In the ATR presented to the Parliament during
May 2003, final response of the Government in respect of 111 recommendations had been given. In the Progress
Report presented during December, 2003, action was completed on 39 recommendations. In the Second Progress
Report action was completed on 36 recommendations, in the Third Progress Report on 18 recommendations, in the
Fourth Progress Report on 23 recommendations, in the Fifth Progress Report on 06 recommendations, in the Sixth
Progress Report on 03 recommendations, in the Seventh Progress Report on 07 recommendations and in 8th Progress
Report, only further progress to the pending recommendations was given. In the 9th Progress Report, action was
completed on 07 recommendations, in 10th Progress Report, action was completed on 02 recommendations, in 11th
Progress Report action was completed on 10 recommendations, 12th Progress Report, action was completed on 03
recommendations, in 13th Progress Report, action was completed on 05 recommendations, 14th Progress Report
action was completed on 01 recommendation. In 15th Progress Report action was completed on 01 recommendation.
In 16th & 17th Progress Reports, there was no change in status and action was pending on 4 recommendations and in
this Progress Report also, action on 4 recommendations remains the same.
INDEX
Sl. No. Para. No. Subject in brief Page Nos.
1. 5.111 Laxity on the part of apex regulators the RBI and Registrar,
Cooperative Societies, Government of Uttar Pradesh. 1-7
2. 5.113 Recovery of siphoned money in the case of
CCBL (Government of Uttar Pradesh). 7-10
3. 5.159 Action against Bank auditors for
dereliction of duty by ICAI. 11-22
4. 7.51 Expeditious action on involvement of promoters/corporate
houses in manipulation of prices of scrips. 22-33
18th PROGRESS REPORT (June-2012) OF THE ACTION TAKEN PURSUANT
TO THE RECOMMENDATIONS OF JOINT PARLIAMENTARY COMMITTEE ON STOCK MARKET
SCAM AND MATTERS RELATING THERETO - 2002.
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
1. 5.111 Neither the State Registrar under whose As reported in May, 2003 No change in status.
direct control the Bank functions nor the RBI As against para 5.109
which is an apex regulator in the case of As reported in December, 2003
urban cooperative Banks came to know of As against para 5.109
the misuse of powers and flagrant violation As reported in June, 2004
of regulations/directives of the RBI until a Reply from Govt. of Uttar Pradesh is awaited. The last reminder
public outcry and news in the press. Though was sent on 1/6/2004.
under the UP Cooperative Societies Act, As reported in December, 2004
As against para 5.109.
1965 wide powers of conducting
As reported in July, 2005
inspections, enquiry and audit are vested
As against para 5.109.
with the Registrar of the Cooperative
As reported in December, 2005
Societies, these powers were not exercised As against Para 5.109.
to check the functioning of the Bank. RBI As reported in May, 2006
too surprisingly issued licences as late as As against para 5.109
February, 2001 for opening four more As reported in December, 2006
branches of the Bank, thereby giving an As against Para 5.109.
impression that the Bank was functioning As reported in May, 2007
well. In fact even when in the annual As against Para 5.109.
inspection report of 1999, the RBI had As reported in December, 2007
clearly indicated some glaring irregularities As against Para 5.109.
and the auditors of the State Cooperative As reported in May, 2008
Department for the period 1997-2000 had As against Para 5.109.
pointed out serious irregularities, immediate As reported in December, 2008
steps were not taken for rectifying the Government of Uttar Pradesh have informed that:
irregularities. This leaves the Committee (a) Vide orders dated 24.02.2003 a high level enquiry was ordered
with the impression that both the RCS as to be conducted by the then Member, Board of Revenue, UP viz.
well as RBI showed laxity in discharging Shri V.K. Mittal to look into the lapses committed by its officers.
their duties even prior to March, 2001 when (b) On the basis of the report of Shri V.K. Mittal, the matter was
further inquired into by the Economic Offences Wing of the
the run on the Bank surfaced.
Criminal Investigation Department, Govt. of UP. In its report dated
29.3.07, the Inspector General of Police of the Economic Offences
Wing has found 6 officers of the Cooperative Department and 11
officers of the Audit Department guilty of lack of supervision.
Departmental action is being taken against these officers.
2
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
As reported in June, 2009
Government of UP have informed that after examining the report
of the E.O.W., following action has been taken:
(i) Against the officers of the Co-operative department:
1. Shri R.K.Srivastava, Joint Registrar- Disciplinary proceeding
has been initiated.
2. Shri P.K.Singh, Joint Registrar- Disciplinary proceedings has
been initiated.
3. Shri D.C.Singh, Assistant Registrar- He has been placed under
suspension and disciplinary proceeding initiated.
4. Shri A.K.Pandey, Assistant Registrar- He has been placed
under suspension and disciplinary proceeding initiated.
5. Shri Deo Nath, Assistant Registrar- He retired in the year 2001
hence no departmental action can be initiated against him.
6. Shri S.P.Singh, Joint Registrar- After complete examination
of the case he was not found guilty, hence it has been decided
not to take any action against him.
(ii) against the officers of the finance department:
1. Shri V.K.Tandon, Senior Auditor- His services were terminated
on 24.3.2006 but he has got stay order from the Hon'ble High
Court in writ petition no. 4316/06 on 23.05.06 and reinstated
subject to the final decision in the writ petition mentioned above.
2. Shri H.N.Awasthi, Senior Auditor- Two increments have been
stopped which will be effective throughout the service.
3 to 6-Shri Brij Raj Singh, Distt.Audit Officer (Retd) Shri Lallan
Singh, Distt.Audit Officer.Sri Padam Jang RegionalAudit Officer
Shri Kamla Kant Goswami,Regional Audit Officer.
Charge sheet was issued to all these officers on 20.1.2005. Final
Dicision is to be taken.
7. Shri Awadhesh Chandra Dubey, Chief Audit Officer (Retd).
He was given charge sheet on 05.01.2005 but he was not found
guilty by the enquiry officer, hence disciplinary proceedings
against him has been dropped.
As reported in December, 2009
Govt. of UP have reported the updated position w.r.t.
departmental action taken against its officers of Cooperative and
3
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
Audit Department(s) as per details given below:
I. Against the officers of the Co-operative department:
(i) Sri R.K.Srivastava, Ex. Dy. Registrar, presently posted as
Joint Registrar- Disciplinary proceeding has been initiated.
Final decision is being taken.
(ii) Sri P.K.Singh, Ex. Dy. Registrar, presently posted as Joint
Registrar- Disciplinary proceedings has been initiated. Final
decision is being taken.
(iii) Sri S.P.Singh, Ex. Dy. Registrar, presently posted as Joint
Registrar- After complete examination of the case he was
not found guilty, hence it has been decided not to take any
action against him. The executive action in this regard may
be treated as complete.
(iv) Sri Deo Chand Singh, Assistant Registrar- He has been
placed under suspension and disciplinary proceedings
initiated on 27.10.08. Final decision is being taken.
(v) Sri Deo Nath, Assistant Registrar- He retired in the year 2001
hence no departmental action can be initiated against him.
The executive action in this regard may be treated as
complete
(vi) Sri A.K.Pandey, Assistant Registrar- He has been placed
under suspension and disciplinary proceeding initiated on
28.10.08. Final decision is being taken.
Keeping in view specific recommendations of Govt. of UP in
respect of officers mentioned at sl. No. I(iii & v) above, it is
proposed that action against these officers may be treated as
complete.
II. Against the officers of the finance department:
(i) Sri Awadhesh Chandra Dubey, Chief Audit Officer (Retd). :
He retired on 31.7.07. The matter relates to the period 1996-
2000 hence decision has been taken not to institute
disciplinary proceedings under CSR 351. The executive
action in this regard may be treated as complete.
(ii) Shri Moti Lal, Regional Audit Officer (retired on 31.12.05).
(iii) Shri Ram Kumar Singh Chauhan, District Audit Officer (retired
on 30.6.2000)
(iv) Shri Shiv Dayal Singh, District Audit Officer (retired on
31.12.99)
4
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
In respect of officers mentioned at sl. No. ii to iv, it has been
stated that the matter relates to period of 1996-2000 hence
decision has been taken not to institute disciplinary
proceedings under CSR 351A. The executive action in this
regard may be treated as complete.
(v) Mr. Harish Kumar Srivastava, Joint-Chief Audit Officer: His
explanation was sought vide letter dated 16.1.09 and reply
was received on 11.2.09. Decision is pending.
(vi) Mr. Subrat Chaudhary, Deputy Chief Audit Officer: Explnation
was called vide letter dated 24.10.08 and reply to the same
was received on 26.11.08. Decision is pending.
(vii) Sri Brij Raj Singh, Distt. Audit Officer (retired on 30.4.2000)
(viii) Sri Lallan Singh, Distt. Audit Officer (retired on 31.3.2004).
(ix) Sri Padam Jang Regional Audit Officer
(x) Sri Kamla Kant Goswami, Regional Audit Officer.
Charge sheet was issued to all these officers mentioned at
sl. No. vii to x above on 20.1.2005. Final Decision is pending
against these officers.
(xi) V.K.Tandon, Senior Auditor- His services were terminated
on 24.3.2006 but he has got stay order from the Hon'ble
High Court in writ petition No. 4316/06 on 23.05.06 and was
reinstated subject to the final decision in the writ petition
mentioned above. He retired on 31.07.07. The executive
action in this regard may be treated as complete.
(xii) Sri H.N.Awasthi, Senior Auditor- Two increments have been
stopped permanently & censure entry awarded. The
executive action in this regard may be treated as complete.
Keeping in view specific recommendations of Govt. of UP in
respect of officers mentioned at sl. No. II(i to iv, xi & xii) above,
it is proposed that action against these officers may be treated
as complete.
As reported in May, 2010
Govt. of UP have reported the updated position w.r.t.
departmental action taken against its officers of Cooperative and
Finance Department(s) as per details given below:
I. Against the officers of the Co-operative department:
(i) Sri R.K.Srivastava, Ex. Dy. Registrar, presently posted as
Joint Registrar- Disciplinary proceeding closed after awarding
5
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
penalty of censure to him. Govt of UP have recommended that
executive action may be treated as complete.
(ii) No change has been reported in respect of following officers:
Sri P.K.Singh, Ex. Dy. Registrar, presently posted as Joint
Registrar;
Sri Deo Chand Singh, Assistant Registrar;
Sri A.K.Pandey, Assistant Registrar.
II. Against the officers of the Finance Department:
(i) Mr. Harish Kumar Srivastava, Joint-Chief Audit Officer: His
explanation was sought vide letter dated 16.1.09 and reply was
received on 11.2.09. Strict warning awarded. The executive
action may be treated as complete.
(ii) Mr. Subrat Chaudhary, Deputy Chief Audit Officer:
Explanation was called vide letter dated 24.10.08 and reply to
the same was received on 26.11.08. He was not found guilty.
The executive action may be treated as complete.
(iii) Sri Padam Jang Regional Audit Officer : Punishment of
censure was awarded. The executive action may be treated as
complete.
(iv) Sri Kamla Kant Goswami, Regional Audit Officer:
Punishment of censure was awarded. The executive action may
be treated as complete.
(v) Sri Brij Raj Singh, Distt., Audit Officer since (retired on
30.4.2000) : He was not found guilty and executive action may
be treated as complete.
(vi) Sri Lallan Singh, Distt., Audit Officer : Opinion of UP Public
Service Commission, Allahabad on punishment sought vide letter
dated 8.1.2010.
In view of the recommendations of the Govt. of UP, it is proposed
that action against officers mentioned at serial No.(I)(i) and
(II)(i to v) above may be treated as complete.
Now, the disciplinary action in respect of (a) 3 officers of Coop.
Deptt., out of total 6, mentioned at sl. No. (I)(ii) and (b) only one
officer of Finance Deptt. mentioned at sl. No.(II) (vi), out of total
12 remains pending.
As reported in December,2010
Govt. of UP have reported the updated position with reference
to departmental action taken against officers of Cooperative and
6
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
Finance Department (s) as per details given below :
I. Against the officers of the Co-operative Department:
(i) Sri P.K. Singh, Ex-Dy. Registrar presently posted as Joint
Registrar. The consent of U.P.P.S.C. has been obtained &
the matter is under consideration at higher level.
(ii) Sri Deo Chand Singh, Assistant Registrar Cooperative
Societies. Action under Rule 351-A of C.S.R. is being taken
against him.
(iii) Sri A.K. Pandey, Assistant Registrar Cooperative Societies.
The opinion of U.P.P.S.C. is being taken regarding
punishment.
II. Against the officers of the Finance Department:
Mr. Lallan Singh, Distt. Audit Officer Cooperative Societies U.P.
Lucknow. The decision of 10% curtailment from his pension has
been taken and disciplinary inquiry has been closed.
From the above, it is clear that with the completion of action
against Shri Lallan Singh, the action is complete in respect of all
the officers of Finance Department.
As reported in June, 2011
The Government of Uttar Pradesh have informed the updated
position w.r.t. departmental action taken against its officers of
Cooperative Department as per details given below:
Against the officers of the Cooperative Department:
(i)Shri P.K.Singh , Ex-Dy. Registrar, presently posted as Joint
Registrar: The opinion of U.P.P.S.C. is being taken regarding
punishment.
(ii) Shri Deo Chand Singh, Assistant Registrar Coop. Societies:
Action under Rule 351-A of C.S.R. is being taken against him
and the matter is under consideration at highest level.
As reported in December, 2011
The Government of Uttar Pradesh has furnished the updated
position w.r.t. departmental action taken against its officers is
as under:-
(i) Sri P.K.Singh , Ex-Dy. Registrar, presently posted as Joint
Registrar. Disciplinary proceeding closed after awarding censure
entry to him. Govt. of UP has recommended that the executive
action may be treated as complete.
7
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
(ii) Sri Deo Chand Singh, Assistant Registrar, Coop. Societies.
Govt. of U.P. has submitted that action under Rule 351-A of
C.S.R. is being taken against him, which is not found appropriate
and recommended that the executive action may be treated as
complete.
(iii) Sri A.K.Pandey, Assistant Registrar, Coop. Societies, the
opinion of U.P.P.S.C is being taken regarding punishment.
In view of the recommendation of Govt. of UP, we may treat the
action as complete in respect of (i & ii).
2. 5.113 In view of the foregoing observations, the As reported in May, 2003 No change in status.
Committee recommend the following As against para 5.109
specific action:- As reported in December, 2003
(i) In order to expedite action on the As against para 5.109
criminal complaints which are As reported in June, 2004
presently pending adjudication in the Reply from Govt. of Uttar Pradesh is awaited. The last reminder
Court of the Metropolitan Magistrate, was sent on 1/6/2004.
Lucknow, it is recommended that such As reported in December, 2004
case be tried by a Special Court. As against para 5.109
(ii) UP Government may be asked to As reported in July, 2005
initiate further enquiry against the Regarding constitution of Special Courts, Govt. of UP have
concerned State Registrars for not informed that CBI has filed a charge sheet in the Special Court
being vigilant and excercising designated for dealing CBI cases, there is no need of constituting
supervision on the working of the Bank Special Courts.
even when the UP Cooperative A departmental enquiry was also conducted under section 65 of
Societies Act, 1965 empowers the UP Co-operative Society Act 1965 for the irregularities in bank.
Registrar to hold an enquiry into the And after the enquiry, a surcharge order for the value of Rs.
working of the co-operative society, 30,14,45,235.00 was passed against Shri Anand Krishan Johri
carry out inspection on his own and vide Distt. Assistant Registrar, Lucknow's order No. 2873/co-
op. dated 29.1.05 under section 68(2) of the Act. Out of the total
even supersede the Committee of
283 debtor members of the bank, a sum of Rs. 3.86 crore has
Management in case it is found that any
been recovered, from 45 members.
act is committed which is prejudicial to
Information relating to enquiry against the concerned State
the interest of the society or its members
Registrar has been given in reply to para No.5.109.
or otherwise if the society is not
As reported in December, 2005
functioning properly. This should be
In the case of recovery from 283 debtors of the City Cooperative Bank
done expeditiously.
Ltd., a sum of Rs.3.94 crore has been recovered from 45 defaulters.
8
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
(iii) CBI must complete the investigations Regarding action against the officers of Cooperative Department,
expeditiously in the case wherein the Govt. of Uttar Pradesh have reported that the enquiry being
FIR has been filed for siphoning off conducted by Economic Offences Wing (EOW) of Crime
funds in the form of cheque Investigation Department (CID) of UP Police is in progress.
purchase for Rs. 1.71 crore. Govt. of UP have been requested to take up the matter with
(iv) RBI must introduce a system whereby EOW of CID of UP Police for expediting completion of the same.
the irregularities pointed out in the As reported in May, 2006
annual inspection Reports are As against para 5.109
removed by the Banks and compliance As reported in December, 2006
report is submitted within a period of Shri Anand Krishan Johri, (one of the promoters and accused in
six months from the date of inspection. the charge sheet filed by the CBI) against whom an order under
(v) Strict penal provisions be Section 68(2) of UP Co-operative Societies Act, 1965 has been
incorporated in the Banking passed for a surcharge of an amount of Rs. 30.14 crore has
Regulation Act, 1949 for non- filed an appeal (No.94/05) against the same before Hon'ble
compliance of the directives/ Cooperative Tribunal UP. Out of 490 defaulters total recoveries
guidelines issued by the RBI from time worth Rs. 3.95 crore have been made from 112 defaulters of
to time and in case of default, strict
the banks dues.
disciplinary action should be initiated
As reported in May, 2007
against the erring officials.
As against Para 5.109.
(vi) As an apex body, though it is not possible
As reported in December, 2007
for RBI to monitor each and every
As against Para 5.109.
transaction, it is essential that concurrent
As reported in May, 2008
audit is conducted in the Banks on a
As against para 5.109.
regular basis. The Reserve Bank of India
As reported in December, 2008
may consider making this mandatory.
(vii) Investigation must be conducted to (i) Govt. of UP have stated that their Law Department has
unearth where the siphoned money advised that no separate Court is required to be established
(Rs. 32.30 Crore) has been deployed. as the cases are already being heard in the Special Court
Expeditious action is needed to of CBI. Therefore, action on this part may be treated as
recover the money. complete.
(ii) Govt. of UP have stated that action is being taken against
the officers of Cooperative Department who have been held
responsible for lack of supervision in the report of Economic
Offences Wing of Govt. of UP.
(iii to vi) Extensive action on these parts has already been
reported in the Action Taken Report presented in May 2003
against para No.5.109. In view of this, action on these parts
may be treated as complete.
9
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
(vii) Regarding recovery from various defaulters including Shri
Anand Kishore Johri, the Govt. of UP have been advised to
expedite the proceedings.
As reported in June, 2009
Govt. of UP have informed as under : .
(ii) As against para No.5.111.
(vii) Out of 490 defaulters, recoveries worth Rs. 12.75 crore has
been made from 112 defaulters of the bank dues.
As reported in December, 2009
Govt. of UP have informed as under :
(ii) As against para No.5.111.
(vii) Out of an amount of Rs.27.14 crore to be recovered from
490 defaulters, an amount of Rs.15.99 crore has been recovered
from 262 defaulters.
As reported in May, 2010
Govt. of UP have informed as under:
(ii) As against para No.5.111.
(vii) Out of the amount of Rs.27.14 crore to be recovered from
490 defaulters, an amount of Rs.18.88 crore has been recovered
from 390 defaulters.
Regarding recovery from the accused (Anand Krishna Johri),
appeal filed by him is pending in the Hon'ble Cooperative Tribunal.
As reported in December, 2010
Govt. of U.P. have informed as under:
(ii) As against para No. 5.111.
(vii) Out of the amount of Rs.27.14 crore to be recovered from
490 defaulters, an amount of Rs. 19.13 crore has been recovered
from 406 defaulters.
Out of the balance amount Rs. 7.84 crore which is to be
recovered from 84 defaulters, the recovery proceedings in
respect of Rs. 3.89 crore from 33 defaulters is pending in the
competent courts. Regarding the remaining amount of Rs. 3.95
crore from 51 defaulters, the recovery proceedings are under way.
As regards, the recovery from Shri Anand Krishna Johri, one of
the accused in the charge sheet filed by CBI, appeal filed by
him is pending in the Hon'ble Cooperative Tribunal.
10
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
As reported in June, 2011
Govt. of U.P. have informed as under:
(ii) As against para 5.111.
(vii) an amount of Rs.27.14 crore is to be recovered from 490
defaulters out of which an amount of Rs.19.60 crore has been
recovered from 412 defaulters. Out of the balance amount of
Rs.7.54 crore to be recovered from 78 defaulters, the recovery
proceedings in respect of Rs.3.71 crore from 32 defaulters is
pending in the competent courts, therefore, action on this may
be treated as complete. As regards the balance of Rs.3.83
crore from 46 defaulters, the recovery proceedings are
underway.
The recovery of money from the accused (Shri Anand Krishna
Johri) as per section 68 (2) of U.P. Cooperative Societies Act,
1965, order has been passed against Shri Johri (one of the
promoters and accused in the charge sheet filed by the C.B.I.)
for surcharge of an amount of Rs.30.14 crore. Shri Johri has
filed appeal No. 94/05 against this order before Hon'ble
Cooperative Tribunal, U.P. The Hon'ble Tribunal has cancelled
the surcharge order and remanded the case for fresh hearing.
The Assistant Registrar Cooperative Societies, Lucknow after
hearing the case as per directions of the Hon'ble Tribunal has
passed the surcharge order of the same amount again i.e.
Rs.30.14 crore on 28.10.2009. (Sri Johri has again filed appeal
No. 225/09 in the Hon'ble Cooperative Tribunal, U.P. The last
date of hearing was on 28.3.2011. As the recovery of surcharge
amount of Rs.30.14 crore from Shri Johri is pending in the
competent court, therefore, action on this may be treated as
complete.
As reported in December, 2011
As against para 5.113(ii)
This para relates to taking action against concerned State
Registrars and is also linked to para 5.111. Action on para
5.113 (ii) will remain pending as long as action on 5.111 is
completed.
11
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
3. 5.159 In view of the foregoing the Committee As reported in May, 2003 Proceedings in connection with audit
recommend the following:- (i) Global Trust Bank (GTB) has reported that they are initiating of Global Trust Bank Ltd. (GTB) for
(i) Action for recovery of the outstanding legal action in respect of all Ketan Parekh related NPA the years 2000-01 (M/s Lovelock &
advances which have been diverted accounts. As regards recovery in other NPA accounts, the Lewes), 2001-02(M/s Lovelock &
and the other advances which have bank has reported recovery of Rs.5.98 crores and Rs.9 Lewes) and 2002-03 (M/s Price
now been categorized as NPAs be crores during January 2003 and February 2003, respectively. Waterhouse & Co.).
expedited. (ii) As regards any dereliction of duty on the part of the Bank (i) For the year 2000-01: Members
(ii) In case there is any dereliction of duty Auditors, the matter has already been brought to the notice answerable as Disclosed by the
on the part of the Bank Auditors, the of Institute of Chartered Accountants of India (ICAI) by RBI. Respondent firm i.e. M/s Lovelock
same may be referred to the Institute (iii) The bank has been directed by RBI to take corrective action. & Lewes:
of Chartered Accountants of India for (iv) RBI has issued Instructions to its regional offices on Shri S. Gopalakrishnan
further enquiry and appropriate action. 29.05.2002 to streamline and strengthen the system of Shri P. Rama Krishna
(iii) Even though there were no breach of follow-up action on the findings of Annual Financial Inspection Shri Manish Agarwal
regulations, it was observed that of banks in a time bound manner. Details have given in reply The Report with respect to S/Shri
certain loans were sanctioned without to Para No.10.8. S.Goplakrishnan, R.Rama Krishna and
comprehensive evaluation and (v) In order to review the capital market exposure of banks in a Manish Agarwal had been listed for
uniform and consistent manner, the Reserve Bank of India consideration by the Council at its
therefore, the bank must ensure that
is obtaining monthly reports on capital market exposure from meeting scheduled on 8th November,
proper credit appraisal and monitoring
all banks. 2011, New Delhi.Thereafter, before the
system is in place.
As reported in December 2003 consideration of the said Report by the
(iv) The procedural working of the banks
Follow up action is in progress. Council, CA. P.Rama Krishna filed
must be strengthened and the RBI
As reported in June, 2004 Special Leave Petition in Supreme Court
must ensure that the rectification, if
RBI is following up the recovery of the amounts on a continuous against the Order of the Learned Division
any, takes place in a time-bound
basis. Bench of High Court of Delhi, the Council
manner.
As reported in December, 2004 while noting that the said SLP was yet to
(v) In the immediate aftermath of the Bank of India - Recovered Rs. 17.62 lakh during the period and be listed and considering the facts and
Stock Market crash, RBI focused on the balance outstanding was Rs. 121.43 crore as on June 30, the circumstances of the case coupled
one new private bank although other 2004. The bank is going ahead with compromise settlement in with the fact that written representation
private banks also had large exposure respect of Ketan Parekh group entities with the approval of the dated 11th December, 2009, Affidavit
to the capital market including some Government of India. dated 3rd February, 2010 and additional
who had exceeded RBI limits. Now Global Trust Bank Ltd. - Classified the accounts as NPAs has papers have been received from him, the
that substantial information is made 100% provision for the total exposure and filed criminal Council decided to proceed further in the
available about all the banks cases as well as cases with DRTs against parties. matter.
concerned, the Committee ICICI Bank Ltd. - Recalled the loan in one account and suit is Accordingly, the Council took up the
recommend RBI undertake a being filed. consideration of the Reports in the matter
thorough review and process matters Centurion Bank Ltd. - Has fully written off the outstanding of P.Rama Krishna and Manish Agarwal
relating to all concerned in a uniform balance in accounts relating to Ketan Parekh entities and has and decided as under:
and consistent manner. also initiated legal proceedings in DRT-II. Shri P.Ramakrishna was held guilty of
12
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
Bank of Punjab Ltd. - Has filed recovery suits in DRT and issued professional misconduct falling within the
notice under SARFAESI Act, 2002 for taking possession of meaning of Clauses (6),(7),(8) & (9) of
property mortgaged. Part I of Second Schedule to the
Ratnakar Bank Ltd. - Loan against fixed deposit has since been Chartered Accountants Act, 1949 and
fully adjusted. consequently recommended to the
The above banks have been advised by RBI to take effective concerned High Court that his name be
steps to recover the entire amount from the Ketan Parekh entities removed for 5 years from the Register of
expeditiously. Members.
As reported in July, 2005 The SLP filed by Shri P.Ramakrishna
(i) All the concerned banks have filed cases in DRT, Mumbai came up before the Supreme Court on
against the companies concerned and their guarantors etc. 25th November, 2011 and the Supreme
As the number of cases pending against companies of Ketan Court, inter alia, ordered as under:
Parekh Group is numerous, the proceedings in the DRT are "Until further orders, final order shall not
slow. The process of recovery will take its own legal course. be passed by the Respondent No.1 (ICAI)
(ii) ICAI have informed that they have called the comments/ in so far as petitioner (P.Ramakrishna)
explanations of the auditors concerned on 25.2.2005. The herein is concerned".
concerned statutory auditors for the years 2001-02 and 2002- The Hon'ble Supreme Court had directed
03 have sent in their respective responses dated 20th May, the Respondent Institute to file its counter
2005 which have been received by ICAI on 24th May, 2005. affidavit by 24th February, 2012 which the
The auditors have categorically stated in their aforesaid Institute has filed and the next date of
responses that since the RBI has neither provided the relevant hearing had been fixed for 26th March,
Annual Financial Inspection(s) and the basis/parameters adopted 2012. On 26th March, 2012, the Hon'ble
by the special auditors and has also restrained the ICAI from High Court has directed the Union of India
parting with the Special Audit Report for perusal/examination by to file their counter reply by 8th May,
the statutory auditors for the year 2001-02, they are not in a 2012. Irrespective of whether the counter
position to offer any view/explanation thereon. They had reply is filed by the stipulated date, the
expressed their inability to offer their comments/explanation, in next date of hearing has been fixed for
the absence of the relevant data/information/details. They have, 2nd July,2012.
however, added that they have conducted the respective audits Shri Manish Agarwal was held guilty of
in accordance with the generally accepted accounting and professional misconduct in terms of
auditing practices (GAAP) and the various pronouncements and Notification No.1-CA (15)/60 dated 4th
accordingly requested the Institute to close the matter. November, 1960 falling within the
Further examination of the matter is in process at ICAI. meaning of Clause (7) of Part I of Second
As reported in December, 2005 Schedule to the Chartered Accountants
The documents/details sought by the respective respondent- Act, 1949 and consequently
firms for submission of their respective explanation were received recommended to the concerned High
by ICAI from the RBI on 4th August, 2005 and the same were Court that his name be removed for 3
forwarded on 5th August, 2005 to the respondent firms with years from the Register of Members.
13
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
stipulation that their explanation/comments should reach them However, on the date of hearing, an
by 31st August, 2005. adjournment letter dated 8th November,
The respective respondent-firms have furnished their explanation 2011, has been received from the
/comments vide their letter dated 15.9.05 & 19.9.2005 Respondent No. 1 i.e. S.Gopalakrishnan
respectively and the same is being examined and processed by requesting therein that since he has been
the ICAI in terms of the provisions of Chartered Accountants released on bail in the month of
Act, 1949 and the Regulations framed thereunder. November, 2011. Accordingly, he needs
As reported in May, 2006 some time to send his written
ICAI have informed that they are hopeful to complete the exercise submissions, the Council decided to give
shortly. 45 days time to the Respondent to submit
As reported in December, 2006 his written submissions and adjourned
ICAI have informed that based on the examination of latest inputs the consideration of the Report in the said
received from the Oriental Bank of Commerce along with the matter on 8th November, 2011.
earlier papers received from the RBI, Special Auditors, Thereafter, Respondent No.1 i.e.
clarifications of the Statutory Auditors and other documents, a S.Gopalakrishnan has also submitted his
finality has been reached on treating certain allegations as written submissions vide letter dated 26th
December, 2011.
"information" under Section 21 of the Chartered Accountants
The Council considered the Report of
Act, 1949. Accordingly, the "information" letter(s) i.e., Show
the Disciplinary Committee on 26th-28th
Cause notice(s) have been issued to the concerned Statutory
March, 2012. On consideration of the
Auditors viz. M/s Lovelock & Lewes, Chartered Accountants,
report alongwith the written and oral
Kolkatta (for the year 2000-01) and M/s Price Waterhouse &
submissions of the Counsel for the
Co., Chartered Accountants, Kolkatta (for the year 2002-03) on
Respondent, the Council decided as
1.12.06 & 5.12.06 respectively.
under:
As reported in May, 2007
Shri S.Gopalakrishnan was held guilty of
ICAI have informed that written statement(s) from the member(s) professional misconduct falling within the
answerable have been received and the matter would be placed meaning of Clauses (6),(7), (80, & (9) of
before the Council in its next meeting scheduled to be held in Part I of Second Schedule to the Chartered
the month of June 2007. Accountants Act, 1949 and consequently
As reported in December, 2007 recommended to the concerned High
ICAI have informed that the matters relating to all the three years Court that his name be removed for 5
i.e. 2000-01, 2001-02 and 2002-03 have been considered by years from the Register of Members.
the Council at its meeting held between 16th and 18th August, (ii) For the year 2001-02: Members
2007 for its prima facie opinion and the Council has referred all answerable as Disclosed by the
these matters to the Disciplinary Committee for inquiry. The Respondent firm i.e. M/s Lovelock
matters have been fixed for hearing by the Disciplinary & Lewes:
Committee scheduled to be held between 13th and 15th Shri Kersi H. Vachha
December, 2007. Shri Amal Ganguli
14
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
As reported in May, 2008 In view of the Order of the Division Bench
ICAI have informed that in the meeting held on 13.12.07, the of the Hon'ble High Court of Delhi, the
Reserve Bank of India, which was cited as one of the witnesses Report with respect to S/Shri Kersi H.
in these matters had sought adjournment on the grounds that Vachha and Amal Ganguli was listed for
they needed time to send the documents, the Disciplinary consideration by the Council at its
Committee adjourned these matters to 22nd and 23rd April, 2008. forthcoming meeting schedule to be held
During the hearing on 22nd April 2008, the respondents on 8th and 9th November, 2011. On the
requested the Committee that they require 30 to 45 days time date of hearing, a request for adjournment
for submitting their working papers which are quite voluminous has been received from the Respondents,
in number. After considering the request of the respondents, based on the circumstances mentioned
the Committee, on grounds of natural justice gave the last by them and accordingly decided to
opportunity to the respondents to present their defence and adjourn the Report of the Disciplinary
consequently adjourned the hearing. Committee.
As reported in December, 2008 Thereafter, it was again fixed for
ICAI have informed that the hearing for the matter relating to the
consideration of the Disciplinary
year 2000-01 took place on 1.8.08 at Mumbai and the same
Committee Report by the Council on 14th
was concluded on that day itself. The respondents were
December, 2011. Meanwhile, the
requested to send certain documents as directed by the
Respondents had filed Writ Petition
Disciplinary Committee at the time of hearing and the same have
before the Hon'ble High Court of Bombay
been received from them. The Report of the Disciplinary
whereat after hearing both the parties, the
Committee is under preparation.
Hon'ble High Court of Bombay vide Order
Regarding matters relating to the year 2001-02 and 2002-03,
they have informed that the matter has been adjourned to 6th & dated 15th December,2011 passed the
7th October 2008 at Mumbai. On 6.10.08, the matter was part interim order which are as under:
heard and adjourned to 8.11.08. " In the meanwhile, so far as the interim
As reported in June, 2009 protection is concerned, in our view, it
ICAI have informed as under : would be just and proper to allow the first
(i) The hearing in the matter(s) relating to the years 2000-01 respondent to hear the petitioners on the
and 2001-02 has been concluded by the Disciplinary Committee report of the Disciplinary Committee and
and the said Reports are included in the agenda of the Council after hearing the petitioners if any final
Meeting for its final consideration. If these Reports are accepted decision is taken, no further steps should
by the Council, it would be recommending the punishment to be taken on the basis of such final report
the concerned High Court(s) for its final approval. till the next date of hearing."
(ii) The hearing in the matter relating to 2002-03 has been The matter came up for hearing on 1st
concluded on 23.03.09 by the Disciplinary Committee but March, 2012 and the counsels for both the
thereafter, the Respondents had filed a Writ Petition before the sides submitted before the Court that since
Hon'ble High Court of Bombay. The Hon'ble High Court has the Special Leave petition has been filed
passed its Orders and the same are under consideration by the by one of the petitioners in the Global Trust
Disciplinary Committee for further course of action. Bank matter pertaining to the financial year
15
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
As reported in December, 2009 2000-01 is to come up for hearing before
As regards the hearing in the matter relating to the year 2000- the Hon'ble Supreme Court on 26th March,
01 is concerned, ICAI have informed that after the hearing was 2012. However, the interim orders which
fixed in the month of March and April, 2009, adjournment were passed by the Hon'ble High court of
requests from the Respondents was received which was Bombay on 15th December, 2011
acceded to and accordingly the said Report was included in the continued. Further, they requested the
Agenda of the Council Meeting to be held from 8th to 10th of Court to take up the matter after hearing
August, 2009. In the said meeting, the Respondents, namely, the Hon'ble Supreme Court takes place.
Shri P. Ramakrishna and Shri Manish Agarwal requested for Accordingly, the next date of hearing has
adjournment on the ground that their partner, Shri S. been fixed for 23rd April, 2012.
Gopalakrishnan was not available. The Council on their request In consonance with the interim orders of
adjourned the matter for the last time and further directed the Hon'ble High Court of Bombay that after
Office to have a copy of the Disciplinary Committee Report served taking final decision, no further steps
on Shri S. Gopalakrishnan in the jail which has been duly served would be taken on the basis of such final
on him in the jail. Further, Shri S. Gopalakrishnan has written a report by the Council of the Institute till
letter dated 8th August, 2009 wherein he had requested to defer the next date of hearing by the Hon'ble
the hearing in the case till his release on bail. High Court.
The said report would be placed before the Council at its next The next date of hearing has been fixed
meeting to be held on 16th & 17th December 2009. on 16th July, 2012 and in the meanwhile,
A As regards, the hearing in the matter relating to the year 2001- the interim orders of the Hon'ble High
02 is concerned, it is informed that the said Report has been Court are still continuing.
included in the Agenda of the Council and the Council after The consideration of the Report of the
consideration of this Report along with the written submissions Disciplinary Committee with respect to S/
of the Respondent, if any, if accepts the Report of the Disciplinary Shri Kersi H. Vachha and Amal Ganguli
Committee would recommend the punishment to the concerned was fixed for 26th - 28th March, 2012.
High Court. On consideration of the Report of the
In context with the hearing relating to the year 2002-03 and Disciplinary Committee alongwith written
further to the hearing concluded on 23rd of March, 2009, it is to submission made by the authorized
mention that the Respondents had filed Writ Petition in the representative, the Council held the
Hon'ble High Court of Bombay and the Hon'ble High Court vide Respondents are guilty of professional
its Order dated 16th April, 2009 had given certain directions to misconduct falling within the meaning of
the Disciplinary Committee. In compliance with the directions, Clauses (5), (6), (7), (8) and (9) of 1 Part
the Hon'ble High Court of Bombay, the Disciplinary Committee of the Second Schedule to the Chartered
passed its Speaking Order dated 8th July, 2009 and the same Accountants Act, 1949 and
was informed to the Respondents vide Institute's letter dated recommended to the High Court that the
18th July, 2009 in which fresh date(s) of hearing were also name of the Respondents be removed
intimated to them i.e. on 20th and 21st August, 2009 at Mumbai. from the Register of Members for a period
On receipt of the notice for fixation of hearing in the month of of Five years.
16
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
August, 2009, the Respondents again raised certain issues (iii) For the year 2002-03: Members
relating to the enquiry which were clarified to them vide Institute's answerable as Disclosed by the
letter dated 12th of August, 2009. In furtherance to that, the Respondent firm i.e. M/s Price
Respondents moved the Hon'ble High Court in the month of Waterhouse & Co. :
August, 2009 and the same came up for hearing on 15th of Shri Partha Ghosh
August, 2009 wherein the Hon'ble High Court directed the Shri D.V. P Rao
Disciplinary Committee to give all the documents which are relied In view of the Order of the Division Bench
upon by the Disciplinary Committee against the Respondents of the Hon'ble High Court of Delhi and
within two weeks' time. In compliance with the Order of the thereafter filing of Special Leave Petition
Hon'ble High Court of Mumbai, though all the documents were by one of the answerable Respondent(s)
parted with the Respondent, yet all the documents as received i.e. P.Ramakrishna and thereafter the Writ
from the witnesses i.e. Reserve Bank of India and the Special Petitions filed by M.K.H.Vachha and
Mr.Amal Ganguly before the Hon'ble High
Auditors were sent once again to the Respondents and notices
Court of Bombay, the hearing is yet to be
were issued for the next date of hearing to be held on 16th and
fixed again in respect of these matter(s).
17th of September, 2009. The said notice was issued on 25th of
August, 2009 to the Respondents including the witnesses.
The Respondents again moved the Hon'ble High Court of
Bombay and filed Contempt of Court Petition before the Hon'ble
High Court against the Disciplinary Committee of the Institute
on 9th of September, 2009. The said matter came for hearing on
11th of September, 2009 for which a short adjournment was
sought and the same came up for hearing on 15th of September,
2009. It was brought to the notice of the Hon'ble Court that all
the documents as received from the witnesses have already
been parted to the Respondents and the letter to the said effect
had also been sought from the Reserve Bank of India which
was placed before the Hon'ble High Court on 15th of September,
2009 and once again all the documents which were earlier
provided to the Respondents were again given to them before
the Hon'ble High Court. The said hearing in the matter was again
postponed which was scheduled to be held on 16th and 17th of
September, 2009 on the directions of Hon'ble High Court.
The Hon'ble Court was of the view that it was not necessary to
pursue the exercise of the Contempt Jurisdiction. The Contempt
Petition was accordingly disposed off.
Now, the next date of hearing in the said matter is most
likely to be fixed on 15th & 16th January, 2010.
17
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
As reported in May, 2010
The ICAI have informed that latest progress made in the matter
is as under:
a) For the year 2000-01: Members answerable Disclosed by
the Respondent firm
Shri S. Gopalakrishnan
Shri P. Rama Krishnan
Shri Manish Agarwal
On consideration of the Report of the Disciplinary Committee,
the Council accepted the Report of the Disciplinary Committee
with respect to CA. P. Rama Krishna and held the Respondent
guilty of professional misconduct falling within the meaning of
Clauses (6), (7), (8) & (9) of Part I of Second Schedule to the
Chartered Accountants Act, 1949 and recommended to the
concerned High Court that his name be removed for 5 years from
the list of members. Thereafter, he has filed a Writ Petition in the
Hon'ble Delhi High Court. Counter affidavit has been filed by the
Institute and the Respondent has sought time from the Court to
file their rejoinder and, accordingly, the case was listed for hearing
on 12th April, 2010 and no further progress has been received.
Further, the Council accepted the report of Disciplinary
Committee with respect to CA. Manish Agarwal and held the
respondent guilty of as per notification no. 1-CA(15)/60 dated
4th November, 1960, falling within the meaning of Clause (7) of
Part I of Second Schedule to the Chartered Accountants Act,
1949 and recommended to the concerned High Court that his
name be removed for 3 years from the list of members.
As regards CA. S.Gopalakrishnan is concerned, since he was
in judicial custody, the Council has decided to send one final
notice to him informing that his report would be heard by the
Council after 60 days. Accordingly, the notice is being sent to
him to send his written representation or to send his counsel to
appear before the Council at its next meeting to be held between
3rd and 5th May, 2010.
b) For the year 2001-02: Members answerable Disclosed by
the Respondent firm
Shri Kersi H. Vachha
Shri Amal Ganguli
18
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
The Report of the Disciplinary Committee has been included in
the Agenda of the Council which is most likely to be considered
in its next meeting to be held between 3rd and 5th May, 2010.
The Council after consideration of this Report along with the
written submissions of the Respondent(s), if any, if accepts the
Report of the Disciplinary Committee would recommend the
punishment to the concerned High Court.
c) For the year 2002-03: Members answerable Disclosed by
the Respondent firm
Shri Partha Ghosh
Shri D. V. P. Rao
The hearing(s) fixed in the month of January and February,
2010 were adjourned at the request of Respondent(s). The
hearing in this matter was scheduled for 6th and 7th April, 2010
at New Delhi and no further progress has been received.
As reported in December, 2010
(i)For the year 2000-01: Members answerable as disclosed by
the Respondent firm i.e. M/s Lovelock & Lewes:
Shri S. Gopalakrishnan
Shri P. Rama Krishna
Shri Manish Agarwal
All the three Respondent- members have been found
prima facie guilty by the Council of ICAI. Enquiry against
them has been completed by the Disciplinary Committee
and Reports submitted to the Council of ICAI. The Council,
on consideration of the respective Reports had accepted
the same.The subsequent developments in the matter
are as under:
(a) Shri S.Gopalakrishnan has been granted bail and
consequently he is not under custody now.
(b) Shri P. Rama Krisha has filed a Writ Petition in the Hon'ble
High Court of Delhi against the decision of the Council.
The Hon'ble High Court of Delhi concurred, inter alia, with the
plea of Shri P. Rama Krishna about the non-applicability of the
provisions of the Chartered Accountants Act, 1949 (pre-
amended) and has held that disciplinary proceedings in the
instant matter against the Respondent should recommence from
19
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
the stage specified by it (i.e. from formation of prima facie opinion)
and would continue only under the amended provisions of the
Chartered Accountants Act and not under the pre-amended
Section 21 of the Act.
The ICAI has filed an appeal against the Order of the Hon'ble
High Court of Delhi in the matter.
The Court has fixed the said matter for final disposal on 8th
December, 2010.
In view of aforesaid Order of the Hon'ble High Court of Delhi, MCA
have been legally advised not to initiate any further action even in
the case of Shri S. Gopalakrishnan and Shri Manish Agarwal.
(ii) For the year 2001-02: Members answerable as disclosed
by the Respondent firm i.e. M/s Lovelock & Lewes:
Shri Kersi H. Vachha
Shri Amal Ganguli
The two Respondent-members have been found prima facie
guilty by the Council of ICAI.
Enquiry against them has been completed by the Disciplinary
Committee and Reports submitted to the Council;
Reports of the Disciplinary Committee were slated for
consideration by the Council at its meeting held between
3rd and 5th May, 2010. However, an adjournment request
was received on behalf of the Respondent(s) seeking time
till 31st of May, 2010 to send their written representations
which has been acceded to. Thereafter, another request for
extension of time was received seeking time till 30th of June,
2010 to send their written representations which has also
been acceded to with a stipulation that this is the final
extension of time. Meanwhile, another request for extension
to send their written representation has been received vide
letter dated 29th June, 2010, which has not been acceded
to.
It is pertinent to mention here that it is most likely that on the
basis of the favaourable Order of the Hon'ble High Court of Delhi
in case of Shri P Rama Krishna, the Respondent-members for
the year 2001-02 may cite the Order of the Hon'ble High Court
of Delhi on the Writ Petition filed by Shri P. Rama Krishna and
seek similar treatment.
20
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
(iii) For the year 2002-03: Members answerable as disclosed
by the Respondent firm i.e. M/s Price Waterhouse & Co.:
Shri Partha Ghosh
Shri D.V. P Rao
All the two Respondent- members have been found prima
facie guilty by the Council of ICAI;
Eight hearings had been held by the Disciplinary Committee
till March 2010. Further hearing was fixed on 1st May,
2010.
It is submitted that every effort is being made by ICAI
through the applicable Court of Law to get the Order of the
Hon'ble High Court of Delhi in favour of Shri P Rama Krishna
reversed. The ICAI is waiting for the outcome of the Appeal
filed by it against the said Order of the Hon'ble High Court of
Delhi (Single Judge)
As reported inJune, 2011
(i) For the year 2000-01: Members answerable as Disclosed
by the Respondent firm i.e. M/s Lovelock & Lewes:
Shri S. Gopalakrishnan
Shri P. Rama Krishna
Shri Manish Agarwal
The case is pending in the Hon'ble High Court of Delhi and
the next date of hearing in the matter is 31.5.2011.
(ii) For the year 2001-02: Members answerable as Disclosed
by the Respondent firm i.e. M/s Lovelock & Lewes:
Shri Kersi H. Vachha
Shri Amal Ganguli
No change in status.
(iii) For the year 2002-03: Members answerable as Disclosed
by the Respondent firm i.e. M/s Price Waterhouse & Co.:
Shri Partha Ghosh
Shri D.V. P Rao
No change in status.
21
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
As reported in December, 2011
(i) For the year 2000-01: Members answerable as Disclosed by
the Respondent firm i.e. M/s Lovelock & Lewes:
Shri S. Gopalakrishnan
Shri P. Rama Krishna
Shri Manish Agarwal
A Division Bench of the Hon'ble High Court of Delhi on 31.5.2011,
heard the case and reserved the pronouncement of the
judgement. It pronounced its judgement on 30th September,2011
which is, inter alia, as under:
"Para 37- The intention of the legislation in enacting - Section
21-D of the Chartered Accountants Act, 1949 is to draw out or
make a distinction between the cases pending before the Council
on a complaint or on information, and ensure that the amended
provisions would apply to a fresh complaint or information and
the unmended Act will apply to the pending complaints or
information. It is inconceivable and there is no good reason or
cause why distinction should be made between 'information' and
'complaint' for the purpose of deciding whether the amended or
unamended provision would apply. The legislation intent behind
incorporating Section 21 D is to make the legal position beyond
doubt or cavil so that there is no dispute. Even under Section 6
of the General Clauses Act the position is the same. In these
circumstances, we would prefer the interpretation placed by the
appellant on the word 'complaint' as used in Section 21D. The
word complaint includes information cases which were pending
before the Council on 17th November, 2006. In the facts of the
present matter as discussed above, proceedings or complaint in
the form of information was pending before the council on 17th
November, 2006 and accordingly the unamended provisions will
apply."
"Para 38- In view of the aforesaid reasoning, the present appeal
is allowed and it is held that the procedure prescribed by the
amended C.A. Act, 1949 i.e. Sections 21, 22 and 22A would be
applicable to pending proceedings in information case and not
the procedure prescribed after the amendment made by the
Chartered Accountants (Amendment) Act, 2006. As already held
above, the appellants have not challenged the other findings and
22
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
directions given by the learned Single Judge. The appeal is
accordingly disposed of. In the facts of the case, there will no
order as to costs."
ICAI has informed that in view of above, the Report with respect
to S/Shri S.Gopalakrishnan, P.Rama Krishna and Manish
Agarwal is listed for consideration by the Council of the ICAI at
its meetings scheduled to be held on 8th and 9th November,
2011 at New Delhi.
(ii) For the year 2001-02: Members answerable as Disclosed by
the Respondent firm i.e. M/s Lovelock & Lewes:
Shri Kersi H. Vachha
Shri Amal Ganguli
ICAI has informed that in view of the Order of the Division Bench
of the Hon'ble High Court of Delhi, the Report with respect to S/
Shri Kersi H. Vachha and Amal Ganguli is listed for consideration
by the Council at its meeting scheduled to be held on 8th and 9th
November,2011.
(iii) For the year 2002-03: Members answerable as Disclosed
by the Respondent firm i.e. M/s Price Waterhouse & Co.:
Shri Partha Ghosh
Shri D.V. P Rao
ICAI has informed that in view of the Order of the Division Bench
of the Hon'ble High Court of Delhi, the hearing by the Disciplinary
Committee in the matter(s) relating to S/Shri Partha Ghosh and
D.V.P. Rao is scheduled to be held in the month of November-
December, 2011.
4. 7.51 SEBI furnished four sets of interim reports As reported in May, 2003 No change in status.
inclusive of its investigation regarding Enforcement Directorate has informed that JPC has commented
scrips of certain corporate bodies. The on the suspect roles of 15 promoters and Corporate entities.
Committee's insistence for SEBI's final Files in respect of 15 promoters / companies stated to be close
findings regarding the role of promoters/ to Ketan Parekh were opened by them to determine the nexus
corporate bodies in the price manipulation with brokers through OCB's and FII's and to trace violation of
of the scrips yielded yet another set of RBI/SIA norms while transferring equity to OCB's and FII's. The
reports most of which were again of promoter companies can be divided into two parts:-
interim nature and were received as late 1. Out of the 15 companies mentioned in the JPC report, there
as in November 2002. Due to are companies, where certain enquiries which might have a
23
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
non-availability of Final Report from FEMA angle were still pending. These comprise the a) DSQ
SEBI, the Committee could not have the group, b)Zee Telefilms Ltd., c)HFCL, d)Global Telesytems,
opportunity to take oral evidence of these e)Global Trust Bank, f)Silverline Technologies, g)SSI Ltd.
corporate bodies. The Committee urge 2. With regard to the second group, the Enforcement
SEBI, the Department of Company Affairs Directorate's inquiries have been directed against these
and other investigative agencies to promoter companies where certain details have been called
expedite and complete their for. This group comprises a)Adani Exports, b)Padmini
investigations into involvement of Technologies c)Aftek Infosys, d)Satyam Computers e)
promoters/corporate houses in Ranbaxy Ltd. f) Lupin Labs g) Pentamedia Graphics h)
manipulation of prices of scrips which Shonkh Technologies.
were found to have undergone unusual In addition to the 15 promoters and corporate entities mentioned
volatility. The Government should take in JPC report, on the basis of SEBI report suggesting the specific
appropriate action under the provisions involvement in market manipulation and their proximity to Ketan
of the relevant laws on the basis of Parekh, the Enforcement Directorate has initiated investigation
outcome of their findings. Expeditious in respect of the following companies:
action should be taken against those a)Maars Technologies, b) Mascon Global, c) Mukta Arts, d)
involved wherever the involvement of Tips Industries, e) Balaji Telefilms , f) Kopran Group, g) Nirma
promoter/corporate house is established. Group, h) Cadilla group.
Investigations by the Enforcement Directorate in respect of these
23 promoters/companies are in progress.
Action taken by SEBI is covered in Para 2.15.
As reported in December, 2003
The Enforcement Directorate had also initiated investigation in
respect of 8 more companies. Thus, the total number of
companies, which were under investigation by Enforcement
Directorate, was 23.
Out of these 23 companies, in respect of one company i.e. DSQ
Group, the investigation has been completed and Show Cause
Notices have been issued under both FERA & FEMA. In respect
of M/s Maars Technologies and Silverline Technologies Ltd.,
investigation on one aspect i.e. non-realisation of export
proceeds have since been completed and Show Cause Notices
have been issued under FEMA on 11.6.2003 and 8.10.2003
respectively.
Investigations in respect of the remaining 20 companies are at
a very advanced stage.
24
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
As reported in June, 2004
Investigations by Enforcement Directorate are in progress.
As reported in December, 2004
Out of 23 companies, Show Cause Notice (SCN) to one more
company i.e. M/s Lupin Ltd. (apart from 04 companies against
whom SCNs have already been issued) has been issued on 2/
9/2004 leaving 18 companies against whom investigations are
at a very advanced stage.
Besides, part investigations have been completed against one
more company viz. M/s Shonkh Tech. Ltd. and a show cause
notice for non-realisation of export proceeds has been issued.
However, further investigations in this case are also being carried
out on the basis of documents received from the CBI.
In another company of M/s Ketan Parekh, a show cause notice
has been issued to M/s Classic Credit Ltd. and M/s Panther Fin
Cap Ltd. (both Ketan Parekh entities in India) alongwith Shri Ketan
Parekh. However, some more investigations are being carried
out.
Further, a show cause notice issued to M/s DSQ Software Ltd.
has been adjudicated by imposing a penalty of Rs.2 crore on
the company and Rs.2 crore on Shri Dinesh Dalmia.
As reported in July, 2005
Enforcement Directorate has informed that out of 23 companies,
Show Cause Notices against seven companies have been
issued. Investigation against remaining 16 companies is at an
advance stage.
As reported in December, 2005
No change in the status.
As reported in May, 2006
No change in the status.
As reported in December, 2006
Out of remaining 16 companies, investigation against one more
company i.e. M/s Mascon Global has been finalised, which ended
in closure of the case.
Investigations against remaining 15 companies are at final stage.
As reported in May, 2007
No change in the status.
25
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
As reported in December, 2007
No change in the status.
As reported in May, 2008
Enforcement Directorate have informed that :
(i) Show Cause Notice (SCN) dated 31.1.2008 was issued to
M/s Balaji Telefilms Ltd., its Chairman Shri Jitendra Kapoor and
its MD Smt. Shobha Kapoor for contravention of the provisions
of Sec. 6(3)(b) of FEMA 1999 read with Regulation 4 of Foreign
Exchange Management (Transfer or Issue of Security by a
Person Resident Outside India) Regulations 2000, involving an
amount of Rs. 10,46,50,000 being market value of 8,05,000
shares @ Rs. 130/- per share.
(ii) Show Cause Notice dated 19.6.2006 was issued to M/s Tips
Industries Ltd. and its CMD Shri. Kumar S. Taurani for
contravention of the provisions of Sec. 6(3)(a) of FEMA 1999
read with Regulations 5,6 & 13 of Foreign Exchange
Management (Transfer of Issue of any Foreign Security)
Regulations 2000, involving an amount of US$7,54,100.
The above SCN was adjudicated on 27.11.2006, imposing
penalty of Rs.70 lakhs on M/s Tips Industries Ltd.and Rs.20
lakhs on Shri Kumar S. Taurani, CMD.
(iii) Show Cause Notice issued to M/s Maars Software Ltd. on
11.6.2003 for non-realisation of export proceeds has been
adjudicated on 13.3.2008, imposing penalty of Rs. 4 crores on M/
s Maars Software Ltd. and Rs. 1 crore on Shri T. Varadharajan,
MD.
As reported in December, 2008
Enforcement Directorate has informed as under:
Mukta Arts : Investigations completed. SCN issued in this case
has been adjudicated on 11.8.08 imposing a total penalty of
Rs.4,58,000. Action in respect of this company may be treated
as complete.
SSI Ltd.: Investigations completed. Since no contravention of
the provisions of FERA/FEMA was noticed, the case has been
closed. Action in respect of this company may be treated as
complete.
26
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
Satyam Computers : Investigations completed. Complaint filed
by I.O. for contravention of provisions of FEMA is under
consideration for issuance of SCN.
HFCL : Investigations completed. SCN for contravention of
provisions of FEMA issued in Sept. 2008.
Adani Exports : Investigations completed. SCN for contravention
of provisions of FEMA issued in Sept. 2008.
M/s Greenfield Investments Ltd.: Investigations completed.
Complaint for contravention of provisions of FEMA is under
preparation.
As reported in June, 2009
Enforcement Directorate has informed as under:
M/s. Satyam Computers Ltd. The Proposed SCN was not
issued in this case as the recent developments in the detection
of fraudulent export documentation adopted by the erstwhile
Management of the company has cast serious doubts on the
extent of actual export proceeds outstanding. Hence the matter
is being looked into afresh.
M/s. Himachal Futuristic Communications Ltd. The
Adjudicating Authority has been advised to finalise the
adjudication proceedings by 30.06.2009.
M/s. Adani Exports Ltd. The Adjudicating Authority has been
advised to finalise the adjudication proceedings by 30.6.2009.
M/s Balaji Telefilms Ltd. Subsequent to the issuance of Show
Cause Notice on 31.01.2008 by the Directorate of Enforcement,
M/s Balaji Telefilms Ltd., its Chairman Shri Jitender Kapoor, and
its Managing Director Smt. Shobha Kapoor applied to RBI for
compounding of contravention involved in the SCN. RBI
compounded the contravention vide its order dated 31.10.2008
in the sum of Rs. 5,00,000/-which has since been paid by them.
Hence, no further action under FEMA is required as the matter
has attained finality. Action against this company may be treated
as complete.
M/s. Global Telesystems Ltd. Investigations in this case have
been completed; no contravention under FEMA has been
noticed. Hence the case has been closed. In view of this, action
againstthis company may be treated as complete.
27
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
M/s Global Trust Bank Investigations in this case have been
completed. In all, 6 SCNs had been issued to M/s. Global Trust
Bank and others. On conclusion of adjudication proceedings,
charges against M/s Global Trust Bank in all the 6 SCNs have
been dropped and the case stands closed. Hence, action
against this company may be treated as complete.
M/s Padmini Technologies Ltd. Dy. Director, Delhi Zone has been
advised to complete the investigations in a time bound manner.
M/s Aftek Infosys Ltd. Investigations in this case have been
completed; no contravention under FEMA has been noticed.
Hence the case has been closed. Action against this company
may be treated as complete.
M/s Kopran Group Investigations in this case have been
completed; no contravention under FEMA has been noticed.
Hence the case has been closed. Action against this company
may be treated as complete.
M/s. Nirma Group Investigations in this case have been
completed; no contravention under FEMA has been noticed.
Hence the case has been closed. Action against this company
may be treated as complete.
M/s. Cadilla Group Investigations in this case have been
completed; no contravention under FEMA has been noticed.
Hence the case has been closed. Action against this company
may be treated as complete.
M/s Ranbaxy Laboratories Ltd. Special Director, Mumbai Zone
has been advised to complete the investigations in a time bound
manner.
M/s Pentamedia Graphics Ltd. Dy. Director, Chennai Zone has
been advised to complete the investigations in a time bound manner.
M/s Zee Telefilms Ltd. Investigations in this case had been
completed and one SCN dated 23.07.2004 was issed for various
contraventions of FEMA as reported earlier in ATR for December
2004 with reference to para 12.121 of the JPC Report.
Adjudication proceedings are in progress The Adjudicating
Authority has been advised to finalise the adjudication
proceedings by 30.06.2009.
28
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
M/s Silverline Technologies Ltd. SCN issued to M/s Silverline
Technologies Ltd. and others on 18.10.2003 has been
adjudicated on 30.03.2009 imposing penalty as under:
(Rs. in crore)
M/s Silverline Technologies Ltd. : 20.00
Sh. Ravi Subramaniam, Chairman : 1.00
Sh. Krishna Kumar Subramaniam, Vice President : 1.00
Sh. K. Kulathu Subramaniam, Director : 0.50
Total : 22.50
In view of the above, action against this company may be treated
as complete.
M/s Lupin Laboratories Ltd. Investigations in this case have
been completed. One SCN for contravention of FEMA issued
on 02.09.2004 was adjudicated on 27.02.2007, whereby the
charge against the company was dropped. Action against this
company may be treated as complete.
M/s. Shonkh Technologies International Ltd. One SCN issued
to the company and its Directors on 20.09.2004 has been
adjudicated in 2005, imposing penalty as under:
(Rs. in lakhs)
M/s Shonkh Technologies International Ltd. : 35
Sh. Prashant Kumar, Director : 5
Sh. S.N.Malik, Director : 1
Sh. C.R.V. Rao, Director : 1
Sh. Vivek Nagpal, Director : 1
Sh. Ravi Krishna Moorthy, Director : 1
In view of the above, action against this company may be treated
as complete.
Note: Investigation against M/s Classic Credit Ltd. and M/s
Panther Fin Cap Ltd. (Ketan Parekh entities) was taken up as
a follow up action in the case of M/s DSQ Group as it was found
that they had taken a loan of Rs. 162.5 crores in the form of
shares of M/s DSQ Industries Ltd. from an OCB called M/s
Greenfiled Investments Ltd., Mauritius. A Show Cause Notice
was issued to M/s Classic Credit Ltd., M/s Panther Fin Cap Ltd.,
Shri Ketan Parekh and Shri Kartik Parekh alongwith M/s
29
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
Greenfield Investments Ltd. and others. The SCN was
adjudicated imposing a total penalty of Rs.327 crores out of which
an aggregate penalty of Rs.172 crores was imposed on M/s
Clasic Credit Ltd., M/s Panther Fin Cap Ltd., Shri Ketan Parekh
and Shri Kartik Parekh. No further investigation/ action is
pending against the aforesaid two KP entities.
As reported in December, 2009
In the earlier Progress Report, action has been treated as
complete in respect of 15 Companies out of 23 Companies. The
position reported by Deptt. of Revenue/Enforcement Directorate,
in respect of remaining Companies is given in the table below:
(i) M/s Satyam Computer Ltd.- As reported earlier the extent of
actual export proceeds pending realization is now being re-
confirmed in the light of the allegation of fraudulent exports
documentation in the charge-sheet filed by CBI. Fresh enquiries
are under way.
(ii) M/s Himachal Futuristic Communications Ltd.- Case has
been Adjudicated on 11.05.2009. Charges have been dropped.
No action now remains pending in this case. Action against this
company may be treated as complete.
(iii) M/s Adani Exports Ltd.- Case has been Adjudicated vide order
dated 11.05.2009 wherein following penalties have been imposed:-
M/s Adani Exports = Rs.4,10,00,000/-
Shri Rajesh Adani, MD = Rs.1,02,00,000/-
Total = Rs.5,12,00,000/-
No further action now remains pending in this case. Action
against this company may be treated as complete.
(iv) M/s Padmini Technologies Ltd.- The matter is under
investigation and is likely to be completed within a period of 6
months.
(v) M/s Ranbaxy Laboratories Ltd.-Investigations have been
completed and the final report submitted by the Investigating
Officer, proposing closure of the case, is under examination for
a final decision.
30
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
(vi) M/s Pentamedia Graphics Ltd.-Investigations have been
completed and a Show Cause Notice is being issued shortly.
(vii) M/s Zee Telefilm Ltd.- Adjudication proceedings are in
progress. The action against this company may be treated as
complete on the reasons mentioned against para No.12.121.
Action complete.
(viii) M/s Shonkh Technologies International Ltd.- The matter
originating from the material received from CBI concerning the
company is still under investigation and is likely to be completed
within a period of 6 months.
As reported in May, 2010
In the earlier progress reports action has been treated as
complete in respect of 18 companies out of 23 companies.
The position reported by Department of Revenue/Enforcement
Directorate in respect of remaining companies is as under:
(i) M/s Satyam Computers Ltd.: Matter pertaining to
suspected contraventions of the provisions of FEMA is
under Investigations in the Hyderabad Zone of the
Directorate. From the investigations earlier conducted, it
was inter-alia disclosed that this company had failed to
realize proceeds worth over 148 Crore in respect of the
exports made, and as such a prima facie case of
contravention of the provisions of Section 7 & 8 of FEMA,
1999 r/w relevant regulations issued there-under was
made out. However, before any Show Cause Notice under
FEMA could be issued, during January, 2009 there came
up certain important developments, viz. a public disclosure
by Shri Rama Linga Raju, Chairman of this company, inter-
alia admitting acts of forgery/fudging of the company's
accounts / records. Hence, the Directorate registered a
case of commission of offences under PMLA, consequent
to registration of a criminal case by AP Police / CBI.
CBI investigations in the main criminal offence of forgery/
cheating etc. have revealed that as many as 7561 falls /
31
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
fictitious invoices. Three charge-sheets have since already
been filed by CBI against this company / its functionaries.
These developments do impact the aspect of outstanding
export proceeds. Since, a substantial portion of the
company's income was against exports, the veracity of
the exports is being examined to arrive at the correct
amount of export proceeds which are actually outstanding.
On completion of these investigations necessary Show
Cause Notice under FEMA would be issued.
(ii) M/s Padmini Technologies Ltd. : This case is presently
under investigation by the Directorate under FEMA relating
to acquisition / disposal of the shares of this company by
certain Mauritius based OCBs. Necessary information /
details have been sought from RBI which are still awaited.
Also, the investigations are held up as this company is no
longer operating from its earlier known addresses, and
efforts are afoot to locate their present whereabouts.
(iii) M/s Shonkh Technologies International Ltd. : This case
is also under investigation by the Directorate and it is
suspected that the shares of this company were acquired
by Ketan Parekh entities through Credit Suisse First
Boston India Securities Pvt. Ltd., besides disposal of their
shares in favour of certain other entities which were also
connected with Ketan Parekh. Probably, all these were
sham transactions. In this case too, the investigation is
held up for non -availability of the concerned parties, since
this company is no longer operating from its last known
addresses. Efforts are still continuing to locate the
concerned individuals and to bring this investigation to a
logical conclusion, at the earliest.
(iv) M/s Ranbaxy Laboratories Ltd. : Investigation completed
and case closed as no FEMA violation noticed. In view
of the recommendations of DoR/ED, it is proposed that
action may be treated as complete.
(v) M/s Pentamedia Graphics Ltd. : Show cause note issued
to the company and its CEO Shri V. Chandrasekharan
32
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
on 19.11.2009 for non-realization of export proceeds
worth US $ 3,13,26,890 in contravention of Sec. 7(2) and
Section 8 of FEMA, 1999. Adjudication proceedings are
in progress. In the earlier progress reports a stand was
taken that with the filing of charge sheet(s), action on the
part of executive is over and action on a number of paras
was treated as complete. Since, adjudication proceedings
are quasi-judicial in nature and case will be decided/
adjudicated as per laid down procedures which takes a
number of years, there is no logic to keep these paras
pending for want of completion of adjudicating
proceedings. On the same analogy, it is proposed to treat
the action as complete.
As reported in December, 2010
In the earlier progress reports action has been treated as
complete in respect of 20 companies out of 23 companies. The
position reported by Department of Revenue/Enforcement
Directorate in respect of the remaining 3 companies is as under:
(i) M/s Satyam Computer Ltd.
The proposed SCN was not issued in this case as the new
management of the company has filed restated accounts which
show variations in the actual export proceeds outstanding
compared to the figures furnished by the erstwhile management.
Hence the matter is being looked into afresh on the basis of
restated accounts submitted by the new management.
(ii) M/s Padmini Technologies Ltd.
Investigation under progress. Dy. Director, Delhi Zone has been
advised to complete the investigations in a time bound manner.
(iii) M/s Shonkh Technologies International Ltd.
Investigation under progress. Dy. Director, Delhi Zone has been
advised to complete the investigations in a time bound manner.
As reported in June, 2011
In the earlier progress report, action has been treated as
complete in respect of 20 companies out of 23 companies. In
respect of remaining 3 companies, ED have reported as under:-
33
Sl. No. Para No. Observation/Recommendation of JPC Reply of Government/Action Taken Further Progress
Sl. Company Present
No. Position
(i) M/s Satyam Show Cause
Computers Ltd. Notice for an amount
of Rs.50,64, 23,337/-
for non-realization of
export proceeds has
been issued on
28.4.2011-
Action complete.
(ii) M/s Padmini Investigation is still
Technologies under progress.
Ltd.
(iii) M/s Shonkh Investigation
Technologies completed and case
International closed, as no FEMA
Ltd. violation noticed
Action complete.
In view of the above, it is proposed that the action in respect of
companies mentioned at Sr.No. (i) & (iii) may be treated as
complete.
As reported in December, 2011
In the June 2011 Progress report, action has been treated as
complete in respect of 22 Companies out of 23 companies and
i n r e s p e c t o f r e m a i n i n g c o m p a n y i . e . , M /s Padmini
Technologies Ltd. ED have reported as as under:-
"Investigations are in progress and efforts are being made to
finalise the same in a time bound manner."
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