Biggest Mutual Fund
1994: Chain Roop Bhansali, a 40 year old CA, with roots in Sujangarh, who had later migrated to Kolkata, managed to float around 133 subsidiaries & unlisted companies (including a Merchant Bank & a NBFC) during 1992-95 when the market was in the post-Harshad Mehta bear phase.
CRB Mutual Fund, promoted by Bhansali launched a close ended scheme – Arihant Mangal – slated to mature in 1999, and raised Rs 230 Cr from thousands of investors.
1995: It got revealed that only Rs 6 Cr came from retail investors & the remaining Rs 224 Cr was collected from his dummy companies & reinvested in the same companies’ shares!
Meanwhile, Bhansali got a beating on the stock markets, & his investments in the property market did not pay off because of the slump. Caught in a financial trap, he tried borrowing more from the market, and got stuck in a financial quicksand. He is believed to have even financed a Hindi movie, but the gamble failed.
Forget investors, even credit-rating agencies didn’t see it coming. CARE, a leading agency, gave ‘AAA’ rating at a time when the company was going down.
1996: The first and, till now, last instance of a promoter mis-using the Mutual fund company by running a fraudulent operation came to light and CRB was banned from launching new schemes.
CRB Mutual Fund was suspended from doing business. Plus, an already given in-principle approval from RBI to set up a bank in Bhubaneswar was also withdrawn after the inspections revealed the group was misusing funds.
1997: CRB Group failed and C R Bhansali spent few months in jail.
2013:Around 20,000 investors finally hoped to get back some of their money when Delhi high court set up a 3-member special committee to ensure termination of the scheme & repayment to unit holders.
CBI arrested Chain Roop Bhansali from Hong Kong, and he had to return to India along with his wife Manjula, parents, sister and his two children.
2015:Unit holders of CRB Mutual Fund – Arihant Mangal Scheme were invited to contact the Registrar & Transfer Agency with necessary documents for redemption of their units.
The investors were paid back at a provisional NAV of Rs. 6.48 per unit almost 20 years after they bought units of the doomed Arihant Mangal Scheme.
Ask an experienced financial planner for guidance in determining how to manage your funds – and for exploring your options to generate reliable income. They can help you build a rock-solid strategy that lets you enjoy a predictable lifestyle for the long haul.
If you are looking for answers from a financial professional, help is a click away at www.AssuredGain.com
Whether it’s to ask for more information about our service or just to say hi, we love to hear from people so please get in touch! Contact us for any query!!
[contact-form-7 id=”8674″ title=”normal form”]
FOR MORE INFO: CONTACT US