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CBI files FIR against Subramanyam, 3 others

The Central Bureau of Investigation said on Friday that it would investigate the former chairman and three other officials of the nation's largest mutual fund manager, Unit Trust of India, over allegations the fund lost Rs 328 million.

A spokesman for the CBI, S M Khan, said that the agency had filed a first information report against P S Subramanyam, who resigned as UTI's chief earlier this month, executive directors M M Kapoor and S K Basu and general manager Prema Madhuprasad.

Under the law, a first information report is the preliminary step in the investigation of an alleged crime and empowers police to carry out further enquiries.

Khan said the agency was conducting raids at the homes of the men named in the first information report which was filed two days ago.

None of the officials named were immediately available for comment on the investigation which relates to alleged losses suffered by the state-run fund after it invested in a company.

UTI, which manages Rs 575 billion in assets, stunned investors when it announced on July 2 that it was freezing redemptions from its flagship US-64 fund for the rest of 2001 due to a surge in redemptions following a dive in performance.

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