The Telegraph
Since 1st March, 1999
Email This PagePrint This Page
Scam handcuffs on ex-SHCIL boss

Calcutta, Oct. 9: Calcutta Police today arrested B. V. Goud, former managing director of Stock Holding Corporation of India Ltd (SHCIL), and S. N. Paul, senior vice-president of IndusInd Bank, in connection with the multi-crore securities scam that rocked Lyons’ Range a year-and-a-half ago.

The detective department of Calcutta Police had summoned Goud and Paul, the local head of the Hinduja-promoted bank, for interrogation. After grilling them through the day, the police arrested the two in the evening. Deputy Commissioner of Police (detective department), Soumen Mitra, confirmed the development.

SHCIL is the country’s largest depository participant and custodian of securities. It is promoted by Industrial Development Bank of India (IDBI), Unit Trust of India, Life Insurance Corporation and General Insurance Corporation, among other leading government-owned institutions.

Officers investigating the case said: “After interrogation, we felt it was necessary to detain them in our custody. Besides, the Securities and Exchange Board of India (Sebi) has made incriminating remarks about them in its reports to the Joint Parliamentary Committee probing the scam. We decided to arrest them because we need to probe their involvement further.”

Harish Chandra Biyani, one of the key defaulter-members of the Calcutta Stock Exchange, had embezzled Rs 24.4 crore from IndusInd Bank by abusing SHCIL’s ‘sell-n-cash’ scheme. Deputy commissioner Mitra had said on Tuesday the police were examining whether there was any collusion between SHCIL and the brokers.

Biyani and his firm, Biyani Securities, traded in the shares of DSQ Industries with the intention of cheating the Calcutta Stock Exchange, the beleaguered bourse has said in its FIR.

Dinesh Dalmia, promoter of the DSQ group of companies, along with one of the Biyanis had met Goud in his office in Mumbai in early 2001. The former SHCIL managing director said on Tuesday, the two had come with “a proposal that he did not approve of”. “That’s the only time I met them, he said, adding emphatically that no SHCIL official had “personally benefited” from the controversial deals.

Meanwhile, the six brokers arrested so far were today remanded in judicial custody for a month. They were produced before the chief metropolitan magistrate today. They will appear again on November 8.

In a related development, Dinesh Dalmia moved the Calcutta High Court seeking restraint on police investigation into DSQ Software, but the plea was rejected.

Email This PagePrint This Page