New Delhi: The Central Bureau of Investigation (CBI) has begun an inquiry into the alleged irregularities in the sale of controlling stake in a subsidiary of SHCIL, the country’s largest custodian of securities, to a Singapore-based company.
The premier investigating agency has registered a Secret Information Report in the case after which it would decide whether or not to launch a formal inquiry into the functioning and dealing of Share Holding Corporation of India Ltd (SHCIL).
While the CBI was officially silent on the issue, sources in the agency said its Economic Offences Wing in Mumbai had asked SHCIL to furnish all the set of documents pertaining to the transfer of shares.
According to the allegations, SHCIL’s stake in its subsidiary, SHCIL Services Ltd (SSL), was reduced to 26% from 100% after SSL’s management, misusing its authority, secretly sold 40% shares to Singapore-based E-Ventures Capital Pte Ltd.
The company is also alleged to have leaked sensitive commercial information regarding some public sector giants to some foreign and domestic companies.
SHCIL is the country’s largest depository company and is jointly promoted and owned by financial institutions and banks such as LIC, GIC, UTI, IDBI and IFCI.
Apart from it, the Ministry of Company Affairs has also moved before the Company Law Board seeking investigation into SSL’s affairs.
In the second week of May, SHCIL has also moved the CLB, seeking a probe into SSL’s affairs by the government.
SHCIL had alleged that by misusing its authority, the SSL management secretly sold 33% ordinary shares along with 7% preferential shares to E-Ventures Capital Pte Ltd, which it termed as a “doubtful foreign investor”.
“The shares were allotted in a clandestine and surreptitious manner without proper due diligence and proper identification... Thereby changing the management control,” contended SHCIL.
The CLB has already issued notices to all SSL directors and frozen their voting rights.
SHCIL also alleged that the SSL officials committed irregularities in implementation of government’s contract for Computerised Stamp Duty Administration System that was designed after a fake stamp paper scam came to light.