JPC probing security scam to seek second extension

Our Economic Bureau

New Delhi, Nov 20: The Joint Parliamentary Committee (JPC) probing the multi-crore securities scam will seek second extension to complete its probe.

The JPC was given time till the end of the Winter Session to complete its probe. However, the task is far from complete and hence the JPC is keen for seeking another extension.

When contacted, JPC chairman Sri Prakash Mani Tripathi said, “we have been given the additional task of probing the Unit Trust of India (UTI) and we will need some more time.”

Lok Sabha speaker GCM Balyogi had earlier asked the JPC to inquire into the UTI also. The UTI, it may be mentioned, was not specifically mentioned in the terms of reference of the JPC.

The committee, according to Mr Tripathi, would have sittings after the Winter Session and would like to complete as much work as possible before the start of the budget session in February next year.

The committee also had a meeting on Tuesday to decided about the future sittings and the persons to be summoned for deposition.

The 30-member JPC was constituted by Parliament to probe the stock market meltdown after the presentation of the union budget in February. Initially the JPC was asked to submit its report to Parliament by the end of Monsoon Session. However, the JPC expressed its inability to complete the probe in the stipulated time and sought more time, uptill the end of Winter Session.

Meanwhile, Mr Balyogi extended the scope of JPC to also probe UTI imbroglio over which heated debates were witnessed in both the Houses of Parliament. Mr Balyogi decided to extend the scope of the JPC after meeting leaders of various political parties in August last. The Opposition parties were demanding a separate JPC to probe UTI fiasco, especially the government’s mishandling of the US-64 issue.

During the course of inquiry, finance ministry officials, Reserve Bank of India Governor and deputy governors, Securities and Exchange Board of India (Sebi) chairmen and executive directors and representatives of Unit Trust of India, Bombay Stock Exchange, Calcutta Stock Exchange, Department of Company Affairs, ministry of external affairs etc. deposed before the committee.

The committee, however, has yet to summon stock broker Ketan Parekh and former UTI chairman PS Subramanayan, who have reportedly played a key role in stock market meltdown and UTI fiasco leading to freezing of redemption of US-64 units, respectively.