AHMEDABAD, June 11: The number of individual investors in the CRB group of companies from Gujarat is likely to increase to 30,000 with an investment of around Rs 100 crore.

This is in addition to Rs 60 crore invested by several co-operative banks and Rs 18 crore by Gujarat Industrial Investment Corporation (GIIC), agencies protecting the investors' interest said.

The number, which was put at Rs 40 crore a week back, is steadily increasing with Gujarat Investors' & Shareholders' Association and the newly formed Gujarat Investors Forum, among other agencies, receiving hundreds of queries every day.

Although the irregularity was discovered nearly a month back, it was only on Monday that the Gujarat government announced an inquiry by the state CID (Crime Branch). The probe, led by IG Police Gurdayal Singh, will examine the huge investments by co-operative banks. GIIC had also begun seeking legal opinion on ways to recover the amount.

The Ahmedabad branch of RBI has banned co-operative banks, which had invested in CRB group, from opening new branches. The list includes Vaso Co-op Bank, Baroda District Co-op Bank, Rajkot Nagrik Co-op Bank, Nadiad Co-op Bank, Nadiad People's Bank, Boriavi Co-op Bank, Kaira District Co-op Bank, Charotar Nagrik Co-0p Bank, Gozaria Co-op Bank and Mehsana District Co-op Bank.

The RBI branch had opened a cell on Monday to receive and compile claims for outstanding dues from CRB group. The forms will be sent to the official liquidator in the Delhi High Court. Gujarat Investors' & Shareholders' Association, affilated to All-India Federation, began distributing free forms and guidance. Association president Chinubhai R Shah admits that the chances of recovering the amount are bleak since CRB group's liabilities outweigh its assets. In any event, secured creditors get priority over individual investors.

Shah, former national president of the Institute of Company Secretaries, recalls that he had written, on May 5, to the Finance Minister, RBI Governor and other authorities asking them to restrict CRB group's operations after he detected snags.

Several investors' fora feel that the government owe an explanation to gullible investors due to flaws in the exsiting rules, Ahmedabad-based Consumer Education and Research Centre (CERC) began collecting details to join as a party in petition for liquidation filed by RBI in the Delhi High Court. It was accompanied with a request to pass an order for disposal of the case of `unprotected investors' on a priority basis.

CERC has also planned to file a miscellaneous petition in Supreme Court with a request to direct the centre to enact a legislation to cover NBFC investors under an insurance scheme.

According to Gujarat Investors Forum president Kamal Mehta, over 1,400 individual investors across the state, mostly from Ahmedabad, have approached him so far. They did this after reading in newspapers about its activities. The body is affiliated to Kirit Somaiyya's forum. Mehta, himself an investor on CRB Caps, blames the ranking system. "Who would not throw his entire lot on three A(ce)s?" he asks.

He says the number of investors was larger than those who had approached him. This, because many are yet to recover from the shock. Individual investments vary from Rs 6,000 to Rs one lakh and even more, often blocking one's lifetime savings. There is fear and uncertainty among people here who had invested in other NBFCs.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.