Search the Internet          Tips  Sites: Finance, Investment

Lucknow investors troubled by Joharis' links to prime minister

Sharat Pradhan in Lucknow

Local investors, who were duped of Rs 1.5 billion by Century Consultants and its sister company, Cyberspace Ltd (earlier Cyberspace Infosys Ltd), believe the Uttar Pradesh government failed to initiate action against the Johari brothers who allegedly masterminded the Rs 4 billion scam.

They are also unhappy with the Central Bureau of Investigation; they feel the CBI is going "too slow" in its probe of the scam.

Former Unit Trust of India chairman P S Subramanyam's reported statement that UTI's investment of Rs 320 million (Rs 32 crore) in Cyberspace was taken against his wishes and made under pressure from 'above' has intrigued the Lucknow investors.

Subramanyam's remark has led some investors to believe there is some truth in the speculation about a nexus between some officials at the Prime Minister's Office and the company's promoters.

"After all, Anand and Arvind Johari managed to get Prime Minister Atal Bihari Vajpayee to lay the foundation stone for their software technology park in Lucknow," observed A K Saxena, president, Century Consultants Investors Welfare Association, a representative organisation of thousands of duped investors.

"With Subramanyam having spilt the beans, there can be no doubt that the Joharis had some direct or indirect nexus with the prime minister," Saxena alleged.

UP Housing Minister Lalji Tandon, who is close to Vajpayee, is believed to have had some role in getting the prime minister to be present at the ceremony. The land for the project was reportedly allotted at Tandon's behest.

His aide and member of the state legislative council Rajesh Pandey, however, claimed former chief minister Ram Prakash Gupta had introduced the Joharis to the prime minister. "Ram Prakashji also enjoys the prime minister's confidence," he had told this correspondent.

What irked investors most is the CBI's demand for 'original,' and not photocopies of deposit receipts and certificates. "That is the only evidence of our investment with us, so how can we part with it?" asks Saxena, who plans to take a delegation of the aggrieved to the prime minister.

Century Consultants, which rose to be one of India's top five stockbrokers in just about five years, promoted Cyberspace, whose stock was once quoted at Rs 1,480.

Saxena and other investors feel the state government and CBI is under pressure from local politicians and bureaucrats, who pumped millions of rupees into the company. These 'investors' allegedly include three state ministers, at least two dozen UP bureaucrats and some senior police officers who found Century a convenient conduit for their ill-gotten wealth.

These individuals were earlier believed responsible for the Lucknow police going slow with its investigation in the case. The ministers and bureaucrats are also alleged to have been responsible for the state government's reluctance to transfer the case to the CBI.

The names of these 'investors' was recorded on floppy disks carried away by the Joharis when they disappeared in March. CBI sources claim they have retrieved these names after Arvind and Anand Johari were arrested in Kalimpong last month.

Money

Business News

Tell us what you think of this report