JPC not empowered to investigate role of MFs, UTI in scam

Our Economic Bureau

New Delhi, May 16: THE Joint Parliamentary Comittee (JPC), probing the multi-crore securities scandal, is not empowered to investigate the role of mutual funds or the Unit Trust of India (UTI) in the stock scam.

Briefing newsmen after the meeting, JPC chairman Prakash Mani Tripathi said that mutual funds have not been specifically mentioned in the terms of reference of the committee and hence JPC was not authorised to question their role.

Mr Tripathi further said that JPC has no powers to change the terms of reference. He also ruled out the possibility of the JPC approaching the speaker to modify the terms of reference to include mutual funds in its purview.

The JPC chairman, however, stressed that the committee would call and question the Central Bureau of Investigation (CBI) officials currently investigating the securities scam.

He said that the decision to question persons involved in the securities scam would be taken by the committee at the two-day meeting on May 29 and 30.

Replying to a question, Mr Tripathi said that apart from Mr Amar Singh, no other member had so far declared his interest in any company. He hoped that members would come forward and declare their interest. Mr Amar Singh had written to the JPC chairman that he was on the board of five companies which include ABCL, Sahara India Media, East India Chemicals, Sarvotham Corporation and Flex Industries and would not participate in any discussion relating to these companies.

The JPC members, on the second day of the technical session, were briefed about the function of the banking sector including cooperative bank, role and powers of regulator and working of the capital markets.