The Central Bureau of Investigation has closed all proceedings against Unit Trust of India executives, alleged to be involved in the institution's investment in DSQ Software.
In its second progress report on the action taken on the recommendations of the Joint Parliamentary Committee, filed this month, the government has noted that "after receiving the internal inquiry report of UTI, which was forwarded to the CBI, along with the institution's complaint, no criminality or mala fide has been discovered on the part of officials of the UTI."
"The complaint has been closed by the CBI," the government said in its latest progress report on action taken.
The case involves UTI's purchase of 1.33 million shares of DSQ Software from the Calcutta Stock Exchange. The off market transactions with CSE involved an investment of Rs 25.13 crore (Rs 251.3 million). But the UTI incurred a loss of Rs 21.40 crore (Rs 214 million).
The JPC had noted, "the then chairman and managing director PS Subramanyam, and executive director, the late MM Kapur, approved the transaction, which any prudent person could have foreseen, would lead to a loss to UTI."
Following the JPC's recommendations to the investigative agencies to "examine the telephone records of Subramanyam, Kapur and BG Daga," the CBI informed that the telephone records "are not likely to lead to any definite conclusion."
The JPC report on the stock market scam was presented to Parliament in December 2002. The JPC had made 276 recommendations/observations/conclusions. The government has filed final responses in respect of 186 recommendations till date.
The government filed final responses for 111 recommendations in the action taken report presented to Parliament in May 2003, and followed it up with final responses on 39 recommendations in the first progress report presented in December 2003.
Responses to 36 recommendations were presented in the second progress report presented in June 2004.
