The Telegraph
Since 1st March, 1999
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Bajoria office raided

Calcutta, Sept. 27: The Calcutta Police today raided the office of Mega Stock — the stockbroking outfit of jute baron Arun Kumar Bajoria — for suspected links with Dinesh Kumar Singhania, one of the key defaulters of the Calcutta Stock Exchange.

Explaining the move, the police said Singhania and his partner Rajkumar Jain were directors on the board of Mega Stock. Jain, among five others, was arrested on Wednesday and remanded in police custody till October 4, whereas Singhania is still on the run.

The police seized several documents from the Fairlie Place office of Mega Stock, which linked Singhania and his group to four other companies owned by Bajoria and his associates. These were Mega Resources, Hooghly Holdings, Hooghly Investments and Gulmohar Impex, the police said.

The police said these companies appeared to have had close links with Singhania. “Indications are these firms indulged in circular trading and had infused funds in badla (carry-forward) trading,” the police added.

Deputy commissioner of the detective department, Soumen Mitra said prima facie the credibility of Mega Stock was not above board. “It had applied for registration as a member of the National Stock Exchange in 2000, but was rejected on grounds of Fera violations of Arun Kumar Bajoria (its principal owner).”

The police are trying to identify those brokers that had close links with the defaulters, and had helped them ramp up share prices through collusive transactions. Efforts are also being made to bring into the net of investigation those that had funded the defaulters in badla transactions.

The raid sent jitters across Lyons’ Range. Though members of the beleaguered bourse welcomed the police action in the beginning, they were dismayed by the extension of the operation beyond the three defaulting groups. “The panic amongst brokers is now palpable,” a broker said.

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