THIS INCLUDES SCAM BY CA CHAIN ROOP BHANSALI IN YEAR 1995. HOW HE DID FRAUD IN STOCK MARKET BY MAKING IMAGINARY COMPANIES

1. Bhansali group
Scam

2. Presented by
MANOJ JAISWAL

3. History
 The Bhansli scam took place in the year 1995 and is
worth Rs.1,200 crores and the key person involved in
this businessman chain Roop Bhansali. Between the
year of 1992-1996,chain Roop Bhansali was running
a lot of financial firm like CRB capital Market ,CRB
mutual fund and CRB share custodian services.

4. Chain Roop Bhansali
 Chain roop bhansali belong to very common middle
class jute trader’s family in Kolkata. He had a degree
in commerce and year 1980 he completed his CA
(Chartered Accountancy).

5. CONT..
 At the time of his completion of CA he ventured into
his financial consultancy firm named ‘’CRB
consultancy”.
 The name CRB consultancy was changed to CRB
capital market and become a public limited company
in the year 1992 and did very well in different field
like merchant banking, leasing and hire purchase.

6. CRB
 CRB corporation ltd raised 84 crore through 3 public
issue between may 1993 and dec 1995.
 CRB share custodian service raised another 100
crore in Jan 1995.
 In Aug. 1994, bhansali launched CRB mutual
funds(CRBMF) which raised 230 crore through
Arihant Mangal Growth Scheme.

7. Arihant Mangal Growth Scheme.
 The CRB mutual fund which was launched in Aug.
1994, came up with a successful scheme named
arihant mangal growth scheme, which raised almost
230 crores from the market.
 He also came with a fixed deposit , which collected
180 crores from the investor.
 Another 100 crore was lifted in Jan 1995 by the CRB
share custodial service.

8. How he did fraud
 He offered lot of attractive schemes and made the
public and big organization to invests in his financial
outfits. Once investments was made Bhansali very
conveniently transfer the money to imaginary
companies. chain Roop Bhansali made enormous
amount of money through his various financial
outfits like through RCB capital market he raised Rs
176 crores, RCB mutual funds-RS 230 crores and
fixed deposits earned him around Rs 180 crores.

9.  Thus he easily owned money worth Rs 900 crores
from all the sources. Bhansali would pay the interest
on investments by borrowing from the market, but
however when there was a stock market crash in the
year1995 it took a toll on all the financial institutions
owned by Bhansali and he swindled nearly an
amount of about Rs.1200 crores.

10. How he caught
 Suspicions arose when CRB capital net worth grew
from 2 crore in 1992 to 430 crore in 1996.
 In mid 1996, the report regarding fraud being
committed by CRB group appearing in media.
 An FIR was filed against CRB as
per sec 120B read with sec 420 of
Indian penal code and sec 13(2)
Read with sec 13(1)D of the
corruption act.

11. Charge
 Bhansali was charged with fraud, cheating, and
siphoning off of fund from SBI.
 Establish dummy companies.
 Rigging share price through own money.

12.  When the scam was brought to light by the media ,
chain roop bhansali escaped from the country to
hongkong along with his wife manjula, parents ,
sister and his two children.
 Later CBI caught bhansali but they let go his wife.