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Subramanyam, others get bail


Our Bureau

MUMBAI, Aug. 7

THE CBI Special Court of Mr S.R. Mehra today released on bail the UTI officials, including Mr P.S. Subramanyam, former UTI Chairman, accused of defrauding the largest mutual fund in the country. Mr Arvind Johari, promoter of Cyberspace Infosys, was, howe ver, remanded to judicial custody till August 14.

Mr Subramanyam and UTI Executive Directors, Mr M.M. Kapur and Mr S.K. Basu, were let out on a bail of Rs 1.5 lakh each and surety of like amount. Mr Rakesh Mehta, stockbroker, was given bail for Rs 3 lakh. All four have been barred from visiting certain places such as UTI, LIC, GIC, the Bombay Stock Exchange and the National Stock Exchange. They have also been asked to report at the CBI office every day between 12 noon and 4 p.m. till September 15.

The CBI had sought 14 days judicial remand for all the accused. The investigating agency told the court that details of a personal mobile phone used by Mr Subramanyam are yet to be ascertained. It said in the remand application that the mobile phone was subscribed in the name of another person, Mr Darji, who has been absconding since August 4.

The remand application also said that during interrogation, the three UTI officials revealed that investment decisions by UTI in various other cases too may have been taken for reasons other than commercial considerations or business expediency.

Seeking extension of remand for Mr Johari, the CBI said the investigation reports of BSE and NSE had concluded that he entered into fictitious deals in the Cyberspace scrip to maintain prices with the dishonest intention of roping in investors and thus b enefit by selling his holdings. He is also involved in rigging up the price of the scrip prior to the private placement at an exorbitant premium at Rs 930, the remand application said.

Granting bail, Mr Mehra said incriminating documents and all details regarding Mr Subramanyam, Mr Basu, Mr Kapur and Mr Mehta have been unearthed. The task of recording statement of more witnesses about the role of the accused can be done without keeping them in custody any more.

He, however, rejected the bail plea of Mr Johari saying that it would not be in the fitness of things to grant him bail as he is the main beneficiary in the UTI fraud and also for some technical reasons.

Mr Satish Maneshinde, counsel for Mr Subramanyam, told newspersons after the court order that his client was happy and that he had full faith in the judiciary. He said Mr Subramanyam was confident that the truth will come out finally.

He, however, declined to comment on the ``mobile phone'' issue.

Proceedings delayed

THE proceedings in the UTI case at the CBI Special Court were today delayed by about four-and-half hours because the accused were not present in the court. Apparently, there were not enough police personnel at the jail to escort them to court!

Mr P.S. Subramanyam, Mr S.K. Basu, Mr M.M. Kapur, and Mr Rakesh Mehta were brought to the court at 4.05 p.m. when they were supposed to be presented at 11 a.m. They were lodged in the Arthur Road prison after the Special Judge, Mr S.R. Mehra, remanded th em to judicial custody on August 4.

While passing his order today, the judge directed the Superintendent of Mumbai Central Prison to take note that such a delay or default does not happen again.

He said action is not being taken against the jailer in the current instance as such a lapse is happening in his court for the first time. He warned that he would take a serious view if it happens again.

Pic.: GETS BAIL: The former UTI Chairman, Mr P. S. Subramanyam, being taken to court in Mumbai on Tuesday.

Picture by Shashi Ashiwal.

Related links:
Subramanyam used a personal mobile phone: CBI
Subramanyam bail plea rejected
Former UTI chief, 2 EDs remanded
Cyberspace Infosys promoter remanded to CBI custody

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