Govt not to revisit cases handled by arrested CLB member

The government on Wednesday said it will not relook at the investigations handled by arrested Company Law Board member R Vasudevan, when he was heading the inspection department of the ministry of corporate affairs.

Vasudevan, who was director investigation and inspection ministry of corporate affairs before joining the CLB three months ago, was looking into high profile cases like the Satyam and the Sesa Goa fraud.

"No we don't need to relook, it is the SFIO that has done the investigation, in the beginning it was done at the level of regional director and Registrar of Companies and then it was taken over by the SFIO, so I don't think we need to worry at all," Corporate Affairs Minister Salman Khurshid said.

CBI has arrested CLB member R Vasudevan, who is also the presiding chairman of the quasi judicial body, on allegedly accepting Rs 7 lakh (Rs 700,000) in bribe from a company secretary of a media house.

On being asked if the arrest of the judge raises questions on the credibility of the system, he said, "In fact it consolidates credibility that there is nobody above the law. . . if you work on the wrong side of the law you will definitely have to bear the brunt. . ."

The arrest of R Vasudevan has left the Delhi bench of CLB without a representative.

Khurshid said, "The new chairman will take over on December 1, and soon after new members will join, so there is nothing for CLB's functioning to be hampered.

Sources on Tuesday said, Narhari is likely to be flown in soon to take over as the board's presiding chairman.

Narhari, sources added, would also be asked to deal with cases in Mumbai-bench of the CLB.

Short of staff, CLB, has of late just four members looking after cases in Mumbai, Delhi, Chennai and Kolkata benches.

According to the sources, about 2,000 cases are pending before the board as on March 2009, most being high-profile corporate disputes.