[sss-global] CHAIN ROOP BHANSALI SCAM - RETURNING PRINCIPAL AMOUNT TO THE INVESTORS

[Raghavendra Rao Venkatasubbarao]

http://www.mumbaimirror.com/article/15/20110525201105250437079993e739aba/After-fourteen-years-money-trickles-in-for-victims-of-crb-scam.html

In 1997, fraudster Chain Roop Bhansali had conned investors of 1,200 crores

After fourteen years, money trickles in for victims of crb scam

Mohini Donde, 72, had invested Rs 1.5 lakh in Bhansali’s CRB Capital Scheme. Last week, out of the blue, she received a letter saying she’d get some of her money back

Yogesh Naik and Lakshmi Iyer

Posted On Wednesday, May 25, 2011 at 04:37:01 AM

Fourteen years is a long wait for those who list their life's savings in a fraud scheme that promised them fantastic returns. But several victims of the infamous CRB (Chain Roop Bhansali) scam have been receiving good news in an envelope in their mail box. Following court orders, CRB Capital Markets Ltd Disbursement Committee has been quietly disbursing principal amount to its depositors from a nondescript office in Delhi's Panchkuia district. While Rs 50,000 - the cap set to the disbursement- may not seem like a life-altering amount, at the time when thousands of unsuspecting middle-class families invested in the scheme, it meant the world. One of the victims who received the disbursement letter is Mahim resident Mohini Donde (72), a retired supervisor from BEST. Donde and her family were devastated by the scam. "I lost nearly Rs 1.5 lakh, my mother, lost Rs 56000, my husband Sharad lost Rs 30000 and my son Rajeev lost Rs 20,000. The crisis was severe as I had invested a chunk of my post -retirement dues in the scheme. CRB was supposed to pay an interest of 15 per cent. The maturity date of my deposits was in 1997 and the company went bust just a few days before the deposit was supposed to mature,’’ recalls Mohini, whose mother is no more. Soon after the scam erupted, Donde made several trips to the various offices of CRB and consumer guidance units. “We also registered our complaints with the Economic Offenses Wing. I had given up hope when I got this letter about reimbursement,” says a moist-eyed Donde. Saroj Acharekar, a retired BEST officer whose fortunes sank with CRB said, ``Soon after retirement, I had invested Rs 30000 in CRB while my husband Ashok invested Rs 10000. I have received a letter from CRB about returning the principal amount, but my husband is yet to receive his communication.” Saroj has sent all her documents to CRB Delhi address by post and has kept her fingers crossed. “I hope nothing goes wrong this time,” she adds. Many investors have got letters quoting various court orders and mentioning that a division bench of the Delhi High Court has constituted a seven-member disbursement committee chaired by a retired additional district and sessions judge to make payments upto Rs 50000. The letter also lists the specifics- investors have to submit original fixed deposit receipts and bonds duly discharged and other proofs of identification and bank details to enable payment in their banks. The CRB Capital Markets Ltd Disbursement Committee has been functioning out of a small office in Delhi from 10 am to 6 pm every day for a month now, processing applications of the depositors, from the original base of 42,000. For the team that is working at disbursing the amount, it is a slow, painstaking effort. Chain Roop Bhansali “Every day we receive about 250 letters. It will take us at least one month to process each request. We expect to complete the work in six months,” said Rajinder Bisht, a member of the staff. Six months is a target set by the court which has also sanctioned a disbursal up to Rs 97 crore as an initial step. The division bench of the Delhi high court headed by Justice Gita Mittal has appointed a committee of eminent people to supervise the release of the money to the small  depositors. These include - S.K. Tandon, (retd), additional district judge Delhi as Chairman, Mamta Mehra, advocate,  P.K. Sharma, (retd) Joint Registrar of Delhi High Court, C.R. Bhansali, and Riasuddin, Dy. Official Liquidator as a Member of the committee.  Scheme of a scam The CR Bhansali scam, in which investors lost over Rs 1,200 crore, came to light in ’97 Bhansali finance firms - CRB Capital Markets, CRB Mutual Funds and CRB Share Custodian Services - offered investment schemes. He raised about Rs 900cr from the public and transferred it to non-existent companies In ’95, when he tried to borrow money from the market, it led to a financial crisis. In 1997, Bhansali was arrested in Delhi and released on bail a few weeks later. In 2002, he suggested revival of CRB Group so he could repay investors

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