Winding-up proceedings against CRB Cap stayed by SC

Written by Indu Bhan | Indu Bhan | New Delhi | Updated: Jan 16 2013, 07:44am hrs
The Supreme Court has stayed winding-up proceedings initiated by RBI and others against non-banking finance company CRB Capital Markets, which allegedly duped around 1.35 lakh small investors and many financial institutions of R1,200 crore in the 1990s.

CRB chairman Chain Roop Bhansali had floated the company in May 1985 and converted it into a non-banking financial company in October 1996. The CBI had registered cases against all the accused under Indian Penal Code and Prevention of Corruption Act.

A bench, headed by chief justice Altamas Kabir, while issuing notice to RBI, Sebi, Gujarat Industrial Investment Corporation and Malanpur Steel (earlier known as Hindustan Development Corporation) stayed the proceedings before the Delhi High Court.

The division bench of the HC had in November last year set aside its single judges order of 2006 that approved the revival scheme of CRB, saying that it violated statutory provisions and was against public policy.