The Telegraph
Since 1st March, 1999
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Ex-CSE official behind bars, DSQ chief quizzed

Oct. 18: Dinesh Dalmia, the promoter and managing director of DSQ Software, was today interrogated by the Enforcement Directorate in Mumbai. The interrogation is expected to continue tomorrow.

Calcutta Police, too, are in the lookout for Dalmia, who had close links with brokers in Calcutta, including Harish Chandra Biyani. The latter was arrested last month.

The directorate is investigating whether the DSQ management had issued shares in violation of foreign exchange regulations to a Mauritius-based company in order to bail out Biyani, who did not fulfil payment obligations to the Calcutta Stock Exchange.

Meanwhile, in Calcutta, the police arrested K. K. Daga, former vice-president of the Calcutta Stock Exchange, on Thursday evening after interrogating him for hours.

Daga was produced before a metropolitan magistrate who remanded him in police custody till October 24. He is suspected to have suppressed sensitive information and helped the defaulters embezzle funds out of the exchange’s reserves.

The development sent shockwaves across Lyons’ Range. A number of influential brokers are known to have already fled the city.

Next week, the police will examine Kamal Parekh, former president of the exchange. Parekh, who is believed to be in the UK now, has promised to return, said sources in Lalbazar — the city police headquarters.

In a related development, the five brokers — Harish Chandra Biyani, Ramesh Biyani, Vijay Kumar Singhania, Basudeo Singhania and Gopal Singhania — arrested earlier were again remanded in police custody till November 1.

The Calcutta Police initiated a fresh case against them based on the FIR lodged by Stock Holding Corporation of India Ltd (SHCIL) in August last year. The six, arrested on the basis of the FIR filed by the Calcutta Stock Exchange, had earlier been remanded in judicial custody.

The police intend to examine a number of SHCIL and IndusInd officials. Officials of the Securities and Exchange Board of India (Sebi) have also been asked to come to Calcutta to help the police with the investigation.

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