Kolkata police move in, Dinesh Dalmia in custody

Dinesh Dalmia of the DSQ group, one of the prime accused in the 2001 share scam of the Calcutta Stock Exchange (CSE),  was produced at the Bankshall Court by Kolkata Police - almost three years after a formal FIR was lodged against him.

A team from the Kolkata Police detective department today brought the promoter of DSQ Software and DSQ Industries from Chennai at around 7 AM by the Chennai Mail.

Dalmia was produced at the court of the chief metropolitan magistrate J Modal at around 2PM. Dalmia was refused bail by the chief metropolitan magistrate.

Two FIRs had been filed against him by the Calcutta Stock Exchange (CSE) and Stock Holding Corporation in 2002 at the Hare Street and Park Street police stations, respectively.

CSE filed an FIR against Dalmia for alleged siphoning of funds through issue of fake shares between March-April 2001.

DSQ group allegedly issued duplicate fake shares of DSQ Software and DSQ Industries through stockbroker Harish Biyani and his associates.

"A total of 10 lakh fake shares were issued. The value of those shares was close to Rs 20 crore at the price of Rs 180-200 prevailing then," sources in CSE said.

It was also alleged that the DSQ chief had helped in artificial price rigging in stocks like DSQ Software, DSQ Industries and Global Software.

Public prosecutor A Bakshi demanded 15 day police custody for Dalmia, saying that though CBI had arrested Dalmia on February 27, that arrest was in connection with a separate case.

"There is an allegation to the tune of Rs 630 crore against the DSQ group by CBI, but Kolkata Police has brought him here in a separate case," he added.

Dalmia's lawyer, Bishnu Ghosh, pleaded that DSQ chief should be given bail or at least jail custody as he has already been in PC for the last 14 days since his arrest by CBI.

Bakshi opposed the bail move by saying that Dalmia has already taken seven anticipatory bails from the Chennai High Court in the last three years. "He has even violated the HC order by going abroad while on bail," Bakshi added.