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Chennai-based DSQ Software may earn the dubious distinction of becoming the first company to be referred to the newly-created Serious Frauds Investigation Office for its role in the securities scam, sources said on Tuesday.
Observing a "disturbing nexus" between the officials of DSQ group, Calcutta Stock Exchange, Stock Holding Corporation of India and Unit Trust of India, the Joint Parliamentary Committee had asked various regulators in December last to expedite probe on the matter that led to Rs 21.40 crore (Rs 214 million) loss to the country's largest mutual fund.
JPC had said the unit-holders of Unit Trust of India had been subjected to a loss of Rs 21.40 crore as on June 28, 2002 on an investment of Rs 25.13 crore (Rs 251.3 million) made by UTI based on a decision, which violated the norms of prudent decision making. Despite repeated attempts, DSQ Software chief Dinesh Dalmia could not be contacted for comments at the company's headquarters in Chennai.
SFIO, set up under the Department of Company Affairs, has been mandated to look into corporate, stock, bank and tax frauds, and related economic offences, and is billed to be a mutli-disciplinary body.
Though SFIO may not have powers of prosecution, it will be able to take up fraud cases suo motu and refer them for probe by other departments including Income Tax and the Economic Offences Wing of the Central Bureau of Investigations among others.