In a major embarrassment for the State Government, a day after they issued a Press release listing 12 multi-state companies purportedly marked by the Reserve Bank of India (RBI) for indulging in illicit financial activities in Uttarakhand, a clarification was issued by the State Information Department on Wednesday stating that the names of the companies were mentioned by mistake in the Press statement. Significantly, one of the companies named in the statement issued on Monday is managed by an adviser of the Chief Minister.
While information provided earlier (Monday) states that the RBI had appealed to the people to avoid transacting with the companies named, the statement issued on Wednesday stresses that the RBI regional director objected to this and stated that no such appeal was made by the regulator.
'Social Mutual Benefits Company' which has its registered office in Dehradun was among the list of 12 interstate companies working in Uttarakhand which, according to the earlier statement of Information department, the RBI has termed as unauthorized and asked investors not to have monetary business with them. Incidentally, the industrial advisor of CM and chairman of Polygon and Social Group of Companies, K S Panwar is one of the directors of the company. The company under the cloud, however, clarified that it is not governed by the RBI and it is a registered financial institution under companies act.
The list of these ‘dubious’ companies was reportedly presented by the RBI officials in the meeting of the State level Cooperative Committee (SlCC) held at the state secretariat on Monday. The meeting was chaired by the chief secretary Utpal Kumar Singh who directed officials to take action against those who corner public money fraudulently. “Cyber Crime cell should also show readiness in such cases,’’ the CS said.
It was decided that the STF (Special Task Force) would be unleashed on those involved in unauthorized financial activities and the RBI would remain in touch with STF on illegal money transactions.
Reacting strongly to the RBI purportedly listing it among the unauthorized companies, the managing director of Social Mutual Benefits Company limited, D S Panwar said in a statement that the company has nothing to do with the RBI as it is registered under companies act. The company also asked the RBI to issue an explanation so that the confusion is cleared.
The observers, however, opined that the fact that the information department annulled the release issued on Monday by Wednesday evening has revealed that the company succeeded in getting its way on the matter.