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JPC may hold Sinha responsible for UTI fiasco

Joint Parliamentary Committee, probing the stock scam, is likely to fix responsibility on former Finance Minister Yashwant Sinha for the UTI fiasco and name Ketan Parekh as the "key player" in the stock scam.

Short of pin pointing Sinha as the main person responsible for the freeze on Unit Trust of India's flagship scheme US-64 in June 2001, a voluminous report of the committee, to be tabled in Parliament on Thursday is expected to give a detailed account of the then Finance Ministers' "failure" to take timely action, sources said.

JPC, which has already zeroed in on the 'Big Bull' Ketan Parekh for the pay-order scam in cooperative bank and the stock scam in March 2001 in its draft report, is likely to name him as the key player in the multi-crore stock scam.

The report has also upbraided the Department of Company Affairs for not being able to come out with details of the corporate companies involved in the scam thereby allowing them to go unchecked.

The JPC, which was set up last year, was given three extensions as its scope was enlarged to include the probe into UTI fiasco besides the securities scam.

The report is widely believed to have come out with far-reaching recommendations to give more teeth to Securities and Exchange Board of India to prevent recurrence of such scams.

Taking serious note of not fully implementing the recommendations of the previous JPC report that probed the 1992 stock scam, the current report is likely to suggest that government come out with a six monthly progress report on the implementation of these recommendations.

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