DCA fires first salvo against CRB

The petition charges the company of gross mismanagement, saying “companies under Bhansali were directly or indirectly used for diversion of funds to the prejudice of the investors and public”. The government feels that the affairs of the company were being carried out against public interest.

The respondents in the case are C R Bhansali, promoter of CRB group of companies and his wife, Manjula Bhansali, both directors of CRB Resources Pvt Ltd.

In an interim order passed on Friday, the principal bench of CLB has ordered a restrain on the company and its officers from selling, alienating, transferring, creating third party rights or inducting any person into or parting with any of its properties or disposing them in any manner.

The DCA filed the petition after getting information from the registrar of companies, and after a scrutiny of it balance-sheet, annual returns, composition of its board. The Reserve Bank of India (RBI) also provided crucial information with regard to the case. According to the information available with the DCA, there is interlocking of funds between the various group companies. CRB Resources holds around 2,86,133 shares worth Rs 111.3 lakh in CRB Capital Markets Ltd, the group’s flagship company.

CRB Resources Pvt Ltd’s main business is buying and selling shares.According to the CLB order, the company may file a reply by August 10.