The company has been suspended from trading by the BSE and all the share certificates have been retained by the exchange clearing house.
Sanjay Pandey, DCP (economic offences), told Business Standard yesterday that nearly 25,000 duplicate shares of the company has been unearthed. It was learnt that the police acted on the basis of a complaint filed by the BSE on Tuesday, when it was discovered that three sets of shares bearing identical distinctive numbers had come up for delivery.
The managing director, V R Mathur, had been arrested on Tuesday night because of his involvement in the issual of duplicate shares, Pandey said.
It was learnt that Mathur will be kept in custody till September 9.
Pandey said the police is investigating the entire issue in detail and other parties associated with the company would be also brought into the drag-net.