MUMBAI, June 10: The Investors Grievance Forum (IGF) today filed a petition in the Bombay High Court demanding confiscation of funds collected on the account of CRB Global Bank. The petition is likely to come up before a divisional bench headed by Chief Justice M B Shah on Monday.IGF president Kirit Somaiya alleged that the Reserve Bank of India (RBI) was only allowing claims regarding CRB Capital Markets leaving investors in other companies in the group high and dry. He demanded that these companies should also be liquidated and the amount received from liquidation be used to pay off the small investors.The forum wanted all the securities held by governmental banking and financial institutions as secured creditors to be given up and all the creditors to be treated on par. Somaiya contested the claim of SBI to be the first creditor.He claimed that SBI, in collusion with the RBI, had advanced Rs 57 crore to the CRB group without adequate security. After the scam broke, they immediately acquired the security and proclaimed themselves first creditors. ``This is illegal,'' he said.The petition also called for the reports of investigations by RBI and SEBI to be made public. Somaiya derided the agencies for not making their reservations on the company known to the public immediately. ``The RBI. had issued a show cause notice dated 9th December, 1996 calling upon the CRB group to give an explanation as to why the `approval in spirit' should not be revoked. "The RBI did not deem it fit to publicise that it had issued a show cause notice dated 9th December 1996,'' the petition said. The petition also says that ``on one hand, in June 1996, SEBI directed a special audit of the CRB group and on the other hand, SEBI itself on 30th June 1996, granted permission to CRB Mutual Fund to come out with more schemes for investment.''
