The Andhra Pradesh Police have issued a search circular against investment banker Nimesh Kampani in the Nagarjuna Finance case, a move which evoked a sharp reaction from industry.
"We have issued a look-out circular against Kampani, a former independent Director of Nagarjuna Finance, across the country," a senior police officer told PTI here today.
Kampani figures on the list of 19 accused in a case filed against Nagarjuna Finance for its failure to repay Rs 98 crore to its depositors after the amount matured.
Rallying behind Kampani, now Chairman and Managing Director of JM Financial, FICCI Secretary-General Amit Mitra said, "He is an eminent banker who is highly respected in the world of finance. He worked with an international company and has lived up to the highest standards of corporate governance."
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Asked if the city police were in touch with the Interpol for nabbing Kampani, the police officer replied in the negative. He refused to divulge details, saying the case was under investigation.
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According to Mitra, this would create a fear psychosis and people of eminence would refrain from becoming independent directors as required by Sebi regulations. "We need around 40,000 independent directors," Mitra added.
The Hyderabad police had arrested Nagarjuna group Chairman K S Raju and former director P K Madhavan on December 15 last year in connection with the case, while another former director, G S Raju, was arrested yesterday, after being detained at New Delhi airport.
All the three are under judicial custody.