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CBI to probe 2.7 million 'missing' shares from Harshad's custody

A special court has ordered the CBI to probe under what circumstances 2.7 million shares were 'missing' from the premises of the big bull Harshad Mehta, his wife Jyoti and brother Ashwin and find out whether they were diverted by these three notified parties to any other person or entity.

Hearing a petition filed by the custodian on April 28, Justice S H Kapadia of Mumbai high court ordered the CBI to complete its probe within six months.

The judge also gave liberty to the investigating agency to file an interim report if it finds some important material during investigation. CBI was entitled to seek help of the Commissioner of Income Tax and Securities and Exchange Board of India.

The verdict came on a petition filed by the custodian praying for an inquiry into the alleged loss of 2.7 million shares and to determine whether Harshad and his group had diverted these to anyone else.

When the scam broke out various entities of Harshad Mehta group were notified under the act on June 8, 1992. Pursuant thereto, their assets were attached. The custodian wrote several letters calling upon notified parties to surrender such attached assets.

On June 15, 1999, Ashwin Mehta wrote to the custodian for the first time stating that 2.7 million shares were missing from their premises. He urged the custodian to trace the 'missing' shares but did not mention the circumstances in which they were missing.

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