The Mumbai Police Departmenfs decision
to drop the criminal complaint tiled against
Dilip Pendse angered the senior executives of
the Tata Group. Shortly after the charges were
dropped, the Tata Group filed a legal appeal
asking an lndian court to order the Mumbai
Police Department to “reinvestigate" the
matter.” Over the next several years, the Tata
Group would doggedly pursue Pendse. As a
result of additional criminal complaints filed
by the Tata Group, Pendse was arrested for a
second time by the Mumbai Police Department
in December 2003. In August 2006, India's
federal law enforcement agency, the Central
Bureau of Investigation (CB1), filed criminal
charges against Pendse, largely as a result of
information provided to it by the Tata Group.
These latter charges are still pending. To date,
the principal criminal sanction that has been
imposed on Pendse is a fine for insider trading
levied against him in January 2007 by the
Securities and Exchange Board of India, the
Indian federal agency that is comparable to
the U.S. Securities and Exchange Commission.
After .retracting its report on the Tata
Finance accounting scandal, AFF disclosed
that it intended to reopen its investigation oi
the matter and file a revised report with the
Tata Group. Apparently, the second report was
never completed. According to an unnamed
source within the Tata Group, the senior ex-
ecutives oi that organization informed AFF in
late 2002 that a revised report would not be
necessary" _ _
Public criticism of AFF's decision to