Calcutta, Dec. 3: Calcutta Police today arrested Gopal Krishna Mukherjee, the former managing director of logistics firm Transafe, for perpetrating a multi-layered accounting fraud in the company.

Mukherjee was picked up from his residence in the morning by officials of Hare Street police station and produced before the chief metropolitan magistrate who remanded him in police custody till December 10.

Along with Mukherjee, Prithwi Manas Mitra, the erstwhile senior vice-president (finance) of Transafe, which is a wholly owned subsidiary of public sector Balmer Lawrie & Co, was arrested.

The arrests follow a complaint filed by the company in January 4 before the chief metropolitan magistrate, which issued non-bailable arrest warrants against Mukherjee, Mitra and a few others on November 10.

The financial irregularities in the company were detected after ICICI Venture, one of the country’s top private equity investor, exited Transafe by selling its stake to Balmer Lawrie in September 2009.

Soon after, Mukherjee resigned from the company amid a growing buzz of financial irregularities.

He is now the CEO of Indicon Logistics, a Thapar company.

The PSU claims to have unearthed a multi-layered accounting fraud involving inflated profits, fudged losses, payment of huge bonuses to top management, and the payment of income tax, dividend and dividend tax on fictitious profits.

Balmer Lawrie bought ICICI’s stake at Rs 16 per share, but the PSU felt the price would have been much lower if the true condition of the company was known.

Transafe, primarily engaged in the manufacturing, selling and leasing of containers and equipment, was advised by solicitor firm Khaitan & Co.

Sanjay Basu, a senior associate of the firm, expressed satisfaction at today’s arrests. “My client is hopeful that the perpetrator of the fraud will be punished,” he said.