CRB scam
HIGHER returns invariably carry higher risks. Indian investors, long used to the cozy security of depositing their savings in state-owned banks, have many a times learned the truth of this maxim. Some may end up paying dearly for the tuition. Bhansali siphoned away investors’ money to the tune of 1200 crores through various lucrative investment schemes over a period of 4-5 years. The chief financial regulatory bodies like SEBI and RBI failed to sense the possibility of any fraud involved in the rosy schemes. The doubts began to roll in 1995-96 following which the scam came in light.
CRB Group
Bhansali was born in a jute trader's house in Calcutta. After obtaining a degree in commerce, Bhansali became Chartered Accountant in 1980. In the same year, he started a financial consultancy firm, CRB Consultancy.
CRB Consultancy soon managed to secure the business of providing issue management services to a few well-known companies in Calcutta. Though he made a lot of money, Bhansali found it difficult to find recognition in Calcutta.
Bhansali then established 'CRB Consultants’, a private limited company in New Delhi in 1985. In 1992, the name of the company was changed to CRB Capital Markets (CRB Caps) and it was converted into a public limited company.
The company offered various services including merchant banking, leasing and hire purchase, bill discounting and corporate funds management, fixed deposit and resources mobilization, mutual funds and asset management, international finance and forex operations. CRB Caps was also very active in stock-broking having a card both on the BSE and the NSE. The company was able to raise over Rs 176 crore from the public by January 1995. The A+ rating given by CARE and upfront cash incentives of 7-10% attracted investors in hordes to Bhansali's schemes.
Bhansali had a reputation of cooking up some accounts and balance sheets for them and selling them off to crooked businessmen. The company offered various schemes like
CRB Group
Bhansali was born in a jute trader's house in Calcutta. After obtaining a degree in commerce, Bhansali became Chartered Accountant in 1980. In the same year, he started a financial consultancy firm, CRB Consultancy.
CRB Consultancy soon managed to secure the business of providing issue management services to a few well-known companies in Calcutta. Though he made a lot of money, Bhansali found it difficult to find recognition in Calcutta.
Bhansali then established 'CRB Consultants’, a private limited company in New Delhi in 1985. In 1992, the name of the company was changed to CRB Capital Markets (CRB Caps) and it was converted into a public limited company.
The company offered various services including merchant banking, leasing and hire purchase, bill discounting and corporate funds management, fixed deposit and resources mobilization, mutual funds and asset management, international finance and forex operations. CRB Caps was also very active in stock-broking having a card both on the BSE and the NSE. The company was able to raise over Rs 176 crore from the public by January 1995. The A+ rating given by CARE and upfront cash incentives of 7-10% attracted investors in hordes to Bhansali's schemes.
Bhansali had a reputation of cooking up some accounts and balance sheets for them and selling them off to crooked businessmen. The company offered various schemes like