THE MINISTER OF FINANCE (SHRI YASHWANT SINHA):
(a) and (b) The Central Bureau of Investigation (CBI) has intimated that nine cases
pertaining to Century Consultants have been registered by CBI, Lucknow Branch at the
request of the Government of UP. Shri Arvind Mohan Johari, Shri Anand Krishna Johari,
main accused and Shri A.K. Shah and Shri P.N. Mathur have been arrested in these cases.
Investigation in the cases is continuing. CBI Mumbai, Branch is separately investigating
into a deal of private placement of 345000 equity shares of M/s Cyberspace Infosys Ltd.
@ Rs. 930.00 per share with UTI during June/July 2000. The investigation is yet to be
completed.
(c) UTI has intimated that it invests in securities of companies which fulfill the
investment norms set by its Board and the Executive Committee.
(d) CBI has intimated that UTI had purchased 345000 equity shares of M/s Cyberspace
Infosys Ltd. on private placement basis @ Rs. 930 per share ignoring the recommendations
of its own research wing i.e., `Equity Research Cell`.
(e) CBI has intimated that the Equity Research Cell of the UTI evaluated the offer of
private placement of equity shares by M/s Cyberspace Infosys Ltd. @ Rs.930 per share and
submitted a report on 23.06.2000 wherein it was recommended that `we recommend that
the Trust may not take up any fresh exposure from the present placement. Infact we may look
to book profits in the stock in the positive atmosphere generated when the takeovers are
announced`. Considering the recommendations of the Equity Research Cell, the management of
UTI regretted the offer on 17.07.2000. However, the proposal was revived on 21.07.2000 by
Smt. Prema Madhu Prasad, General Manager, Shri M.M. Kapur. Executive Director, Shri S.K.
Basu, Executive Director and Shri P.S. Subramanyam, the then Chairman of UTI and purchase
of 345000 shares for a consideration of Rs. 320850000 was sanctioned. A cheque for
Rs. 320850000 issued by UTI and drawn on UTI Bank Ltd. was hand delivered by UTI to Shri
Arvind Johari, Director of M/s Cyberspace infosys Ltd. on 27.07.2000.
(f) With respect to above transaction, the role of Shri P.S. Subramanyam, Ex-Chairman,
Shri M.M. Kapur, L Executive Director. Shri S.K. Basu, Executive Director and Smt. Prema
Madhu Prasad, General Manager is under investigation by CBI, Mumbai Branch.
(g) CBI had arrested Shri P.S. Subramanyam, Ex-Chairman, Shri M.M. Kapur, Executive
Director, Shri S.K. Basu. Executive Director. UTI has intimated that S/Shri M.M. Kapur.
S.K. Basu, Executive Directors and Smt. Prema Madhu Prasad, General Manager
are under suspension.
