Calcutta, Oct. 8: The Enforcement Directorate will investigate the defaulter-members of the Calcutta Stock Exchange in the custody of the Calcutta Police, for suspected violations of the Foreign Exchange Management Act (Fema).
The Calcutta Police had said the defaulters had siphoned off funds through hawala channels. DC (DD-I) Soumen Mitra said: “R. K. Pandey, deputy director of the directorate’s Mumbai office, had called us to say they wanted to probe the eight detained by us for violations of Fema.”
A team of the directorate’s local office would be questioning the eight in the police’s detention on diversion of funds through illegitimate channels. Mitra said: “Some names and contacts (of hawala agents) have been unearthed, but it is still too early to share the details of these transactions.”
Besides the stockbrokers, the directorate might also investigate Srei International Finance Ltd, Mitra added. The police arrested Dinesh Jain, managing director of Srei Securities, last week for alleged links with Dinesh Singhania. The directorate had earlier initiated an investigation into alleged violations of the Foreign Exchange Regulations Act (Fera) by DSQ Software and its promoter Dinesh Dalmia. The Calcutta Police, too, are in the lookout for Dalmia, who is said to be absconding, but his relatives say he is at home in Chennai.
The police today interrogated B. V. Goud, former managing director of Stock Holding Corporation of India Ltd (SHCIL), and A. S. Bagchi, manager of SHCIL’s local office. Mitra said Goud had been asked to stay put in Calcutta, as the interrogation would continue for few more days.
Mitra said, the police were trying to determine whether there was any collusion between SHCIL officials and brokers. “We are checking if SHCIL had broken the rules and favoured the Biyanis in the controversial deals in DSQ Industries,” Mitra added.
Besides SHCIL, the police would also seek clarifications from the IndusInd Bank. Senior officials of the Hinduja-promoted bank will be interrogated tomorrow at Lalbazar, the city police headquarters.
Harish Chandra Biyani, one of the key defaulters, had abused SHCIL’s ‘sell-n-cash’ scheme and allegedly defrauded IndusInd Bank of Rs 24.4 crore. The Bank has moved the Debt Recovery Tribunal (DRT) for recovery of the funds.
Meanwhile, the Calcutta Police produced six of the eight arrested so far in the chief metropolitan magistrate’s court, who remanded them in police custody for another day. They are going to be produced in court tomorrow for extension of their remand.
B. V. Goud’s response
Former SHCIL managing director B. V. Goud passed the buck to the Calcutta Stock Exchange for the collusive deals that led to the embezzlement of Rs 24.4 crore.
“The police had sought clarifications from us on the deals involving Harish Chandra Biyani and his firm Biyani Securities in the shares of DSQ Industries.
“I told them we had done nothing wrong. It was the responsibility of the exchange to stop these transactions from taking place. We could not have known the identity of the buyer,” Goud said.
Asked why Dinesh Dalmia, accompanied by one of the Biyanis, had met him in his office in Mumbai, Goud said: “They had come with a specific proposal, which we refused. That was the only time I met Dalmia and the Biyanis personally.”
“No personal gains were made by any SHCIL official from these deals, and the only beneficiaries were the Biyanis,” Goud said emphatically.