The government has ordered an SFIO investigation into alleged fund diversion and accounts manipulation by the management of erstwhile Global Trust Bank, involved in the stock market scam of 2001 engineered by share broker Ketan Parekh.

The Corporate Affairs Ministry, which had ordered technical scrutiny of the books of GTB by the Registrar of Companies earlier this month, has “prima facie found evidence of fund diversion, serious financial irregularities and accounts manipulation by the management,” official sources told PTI.

“The Serious Fraud Investigation Office (SFIO) has been asked to submit its report on the enquiry into GTB within three months and six officers have been designated for the probe,” according to a Corporate Affairs Ministry official.

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Category : Company Law (4332)
Type : News
Tags : investigation (8) SFIO (39)


  1. Bidup says:

    The SFIO may also look into the link of the promoter of GTB and of anothe Bangalore-based bank with which the same person was connected, as well as the involvement of the CAs representing the latter before the authorities.

  2. Lanka Bhaskar says:

    It is good note that at least now the GOI has ordered into a investigation in the affairs of GTB. What RBI has done when GTB sinking towards losses ?

    What is the fate of the shareholders (small and medium) of erstwhile GTB. OL should have liquidated the assets and might have done justice to the shareholders.

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