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CBI grills Johari in UTI scam case

Arvind Johari, promoter of Cyberspace Ltd, held in a case involving misappropriation of Unit Trust of India funds to the tune of Rs 320 million, was on Thursday interrogated by the Central Bureau of Investigation in Bombay.

It is alleged that that he offered money to a broker to lure top UTI officials to purchase Cyberspace shares at inflated prices, CBI sources said.

However, they refused to divulge details of the investigations saying revelation at this juncture would hamper the probe.

Johari was arrested in Lucknow and remanded to police custody. He was brought to Bombay on a transit remand and produced on Wednesday before Special Judge S R Mehra, who remanded him to police custody till August 2.

On July 21, former UTI chairman, P S Subramanyam, executive directors, M M Kapoor and S K Basu and stock broker Rakesh Mehta were remanded to police custody till July 27 by the special court, which had rejected their plea for liberty.

According to CBI, the accused had conspired to make a private placement of 3,45,000 shares at Rs 930 per share aggregating Rs 321 million in Cyberspace Ltd.

The agency alleged that Rs 321 million, received from UTI, was diverted by Cyberspace Infosys and its directors for purposes other than it was solicited.

CBI alleged that Rakesh Mehta, director of Reinaissance Securities, was paid Rs 5 million by the directors of Cyberspace Infosys to prevail upon UTI to subscribe to 3,45,000 shares of company at Rs 930 per share.

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