The chief metropolitan magistrate of Kolkata today remanded six stock brokers to police custody for 10 days for their alleged involvement in circular trading, manipulation of share prices and embezzlement of public money in two consecutive settlement periods of the Calcutta Stock Exchange (CSE) in March 2001. The six men are associates of the trio who bankrupted the CSE by defaulting on obligations.
The six arrested are Harish Chandra Biyani, Ramesh Biyani, Raj Kumar Jain alias Patni, Gopal Singhania, Bijay Singhania and Basudeo Singhania. Raj Kumar is a director of Doe Jones Securities, a stock broking outfit of the Dinesh Singhania group. The six men will be produced before the Calcutta High Court on October 4. They have been booked under Sections 120B, 420, 447 and 477 of the Indian Penal Code.
The detective department of Kolkata Police arrested the brokers late last night after conducting raids at the residences of Dinesh Kumar Singhania and Harish Chandra Biyani at Salt Lake and Ballygunge Circular Road, respectively. Bijay and Basudeo, two of the men arrested, are brothers of Dinesh Kumar, who, along with Biyani and Ashok Poddar, allegedly owe Rs 30 crore each to the CSE towards their payout obligations.
Dinesh Kumar managed to flee before the police arrived at his residence. Unconfirmed reports indicate Singhania has fled to Delhi.