CPI MP demands probe into UTI-AMC's Rs 2000 crore investment in securities of DHFL

New Delhi: CPI MP Binoy Viswam has written to Finance Minister Nirmala Sitharaman seeking an investigation into the Rs 2,000 crore investment by UTI Asset Management Company in the securities of the scam-hit Dewan Housing Finance Limited (DHFL).

The promoters and directors of DHFL are under investigation by the Central Bureau of Investigation and the Enforcement Directorate for defrauding 17 banks of Rs 34,615 crore, the biggest bank fraud uncovered in India till date.

"While the outcome of the investigation into the DHFL scam is eagerly awaited by all citizens, there is an equally pressing need for investigation and forensic audit of UTI-AMC's Rs 2,000 crore investment in the scam-hit DHFL.

"It appears that even when the entire mutual fund ecosystem had halted investments in DHFL securities after...the scam, investment decisions actively taken by UTI-AMC led to huge investor funds being exposed to tainted DHFL securities," the CPI MP said.

He alleged there is a concerted effort on the part of UTI-AMC, UTI Trustee Company and SEBI to "obstruct" public disclosure of information relating to the investment decisions taken by UTI-AMC.

Viswam said it is for the government to ensure that the trust reposed by investors in UTI-AMC by way of their hard-earned money is not exploited, and demanded that a thorough investigation be carried out into the matter by a Joint Parliamentary Committee.

"Bearing in mind the huge amount of public money involved and the credibility of India's financial management system being at stake, I trust that this issue will be taken up on priority by the government," he said.