Crb Capital Management Company

CAVEAT EMPTOR

CRB Capital Management company is one top groups of companies. They were given a Brand of best finance company in the country in the year 1995 in spite of the Arihant Manghal dispute.

In 1996 RBI issued In principle license to the group to start a commercial bank based on the reports of SEBI. They went into agreement with SBI to encash interest warrants and refund order in August. CARE Downgraded to A. CRBCM applied with RBI for tax free benefit to CRB bonds. They Inspected their books and revoked the RBI license and banned for accepting fresh deposits, CARE still went to grade C. By 1997 company closed its shutters.

All the lapses happened to safe guard their positions and due to political and the bribing of the officials for the scam. RBI had put the blame on SEBI and bankers for the In principle certification. The CARE shows hands on poor audit quality of the firm still they had granted A+ despite the liquidity crisis.

The SEBI comes up with an statement that RBI never asked for the detailed letter extent of violations. SBI in response to the scam suspended 3 officials. The case went to CBI.

CBI registered case against CRB , its auditors and examining role of SEBI,RBI,SBI and CARE.

Investigation believed that the master mind Ex SBI president who was hired for 20 MINR by the CRB group. CRB accepted that he bribed for getting his work done. He accepted that all the certification was made cleared with his political influence.

CRB case shows that there should be better a tough normed regulatory structure for NBFC approvals.The basic idea is to evolve avoiding large inflictions of losses on the depositors. This can never be concluded on the depositors for CAVEAT EMPTOR since all the fraudulents and norm violations was done by the Top governmental organizations.

After this case all the norms was framed and organized which can never bring back the losses.