EOW out of CRB probe

MUMBAI, June 16: The Economic Offences Wing (EOW) of Mumbai Police has decided to withdraw from the investigations into the Rs 1,200 crore ...

MUMBAI, June 16: The Economic Offences Wing (EOW) of Mumbai Police has decided to withdraw from the investigations into the Rs 1,200 crore CRB Capital Markets scam and hand over the probe to the Central Bureau of Investigation (CBI). EOW and CBI were simultaneously carrying out investigations into the multi-crore scam.

Disclosing this today, Joint Commissioner (crime) R S Sharma told Express Newsline that a letter to this effect has been sent to the state government. While Sharma said the decision has been taken to avoid duplication of efforts, sources said the CBI was not cooperating with the police. The lack of coordination with the CBI had made it impossible for the police to follow different leads. One of the main problem was of inordinate delays by the CBI in handing over accused for interrogation.

Sharma, however, refused to be drawn into any controversy. “The state police will provide the CBI with all necessary assistance in the CRB scam investigations. The commissioner of police S C Malhotra has already assured the CBI in this respect,” is all he would say.

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He later disclosed that the crime branch had already made progress in finding out how the CRB Group of Companies was able to obtain an `A plus’ rating from Credit Analysis and Research (CARE). The company’s balance sheets were also under strict scrutiny he said. The EOW of Mumbai police started investigating into the scam after over 350 depositors lodged complaints against the CRB Group of Companies last month. Of the 2.5 lakh CRB depositors in the country, more than 30,000 were from Mumbai alone.

Meanwhile, the Metropolitan Magistrate Esplanade Court this afternoon extended judicial custody of accused S K Jain, vice-chairman of CRB Caps Ltd till June 28. Jain was arrested from his residence on June 8.