CBI nabs seven in IPO scam

The CBI today arrested seven persons in Mumbai and Ahmedabad in connection with the IPO scam. However, the central agency decided not to arrest Roopalben Panchal, one of the alleged masterminds of the multiple demat racket, while arresting her husband Deepakbhai Panchal.

CBI sources said the agency decided to take a lenient view of Roopalben's case as the accused was a woman. "She is available for questioning whenever it is required," an official said.

Those arrested fom Mumbai included Dushyant Dalal, Manoj Seksaria and Purushottam Budhwani while Deepak Panchal, Parag Jhaveri, Diren Vora and Manoj Seksaria were arrested from Ahmedabad.

The accused from Ahmedabad will soon be taken on transit remand to Mumbai where they will be presented before the designated court hearing the case.

CBI sources said they were now taking into account the evidence that had been gathered during yesterday's searches.

The crucial point in investigation would be to connect the fictitious demat accounts with the ones opened by the fraudsters, they said, adding the role of the various financiers who had loaned money to purchase stocks of Yes Bank and IDFC, too, would be investigated.

Yesterday, the Bank Securities and Fraud Cell of the CBI had conducted searches at 27 places in Delhi, Mumbai, Ahmedabad and Hyderabad in connection with the IPO scam in which Roopalben Panchal, her husband Deepakbhai Panchal and a host of other investors and financiers have been named accused.

Some of the racketeers had advertised in local papers offering free mugshots at some photo studios. The pictures taken were used by Roopalben and others to create demat accounts using fictitious names and addresses.