Funds to the extent of 1.26 [illegible] rupees were invested by Life Insurance Corporation (nationalised life insurance body) by purchase of shares of the group of industrial concerns of one Mr Maridas Mundhra.
Funds to the extent of 1.26 [illegible] rupees were invested by Life Insurance Corporation (nationalised life insurance body) by purchase of shares of the group of industrial concerns of one Mr Maridas Mundhra. Finance Minister, Mr. T. T. Krishnamachari's Principal Finance Secretary directed the transactions. Mundhra concerns were traced by Parliamentarian, Mr Feroza Gandhi, to be unstable and their shares begins. Mr Feroza Gandhi raised questions in the Parliament to the Finance Minister for explanation of circumstances leading to the investment of heavy public funds in this way. An Inquiry Commission, consisting of one man, the Chief Justice of Bombay, Mr Justice Chagla, was appointed by the Finance Minister for the probe into the matter. A week long inquiry was held at Bombay and final report submittal to the Prime Minister, holding the Finance Minister, morally and constitutionally, responsible for the transactions of the Principal Finance Secretary, Mr H. M. Patel. Mr Krishnamachari handed over the resignation and the Prime Minister, Mr Nehru took over the Finance Portfolio. Later, Mr Krishnamachari gave statement in the Parliament House before he left Delhi for his home town, Madras, by Special Plane provided by the Government and was seen off by hundreds of his friends consisting of, Prime Minister, Defence, Commerce, Railway, Communications and some other ministers, numbers of Parliament, representatives of some foreign embassies and people in public life. Mr. Haridos Mundhra was arrested.