The Kolkata Police investigation into the Rs 120 crore default at Calcutta Stock Exchange (CSE) widened today as two of the persons arrested in Kolkata were found to be on the wanted list of Mumbai police as well.
Mumbai Police has informed Lalbazar--the city police headquarters--that Gopal Singhania and Raj Kumar Jain alias Patni, two associates of the absconding defaulter Dinesh Kumar Singhania, were on its 'wanted' list.
Deputy commissioner (detective department), Soumen Mitra, said representatives of Mumbai Police might come to the city to interrogate Singhania and Jain. However, the specific charges of Mumbai Police against the two could not be ascertained.
The detective department (special) arrested these two along with four others, namely Basudeo Singhania, Bijay Singhania, Harish Chandra Biyani and Ramesh Biyani, last week on the plea of their alleged price manipulation through circular trading and embezzlement of public money.
The police today zeroed in on Raj Consultancy Services, an office of Jain through which Dinesh Kumar Singhania was believed to have continued share trading even after he was declared defaulter for his outstanding of Rs 30 crore to CSE.
The rules prevailing in the country automatically bar a share broker from the entire capital market if a broker fails to honour commitments on any one bourse.
In addition, searches continued at five/six establishments which were previously sealed. The search for Dinesh and Ashok Kumar Biyani, another defaulter, was also on, Mitra said.
Mitra added that the seized documents and computers revealed that the arrested persons purchased immovable properties after payment crisis rocked CSE in March 2001. They also transferred several properties.
As the accused persons were declared defaulters immediately after the March payment crisis for inability to pay, the purchase and transfer of properties aftermath indicated diversion of fund.
The proof of fund diversion, claimed by the police, is being considered a major breakthrough in the on-going investigation. It indicates that the accused persons conspired against CSE, a century-old institution, by not paying their outstanding and thereby brought the bourse to its knees.
The police also raided an office of jute baron Arun Kumar Bajoria last week. Although Bajoria said he was one of the many clients of Dinesh Kumar Singhania, the police said the defaulting broker was one of the directors of Bajoria's own stockbroking company. The police also said that Mega Stock, Bajoria's stockbroking outfit, was a front firm of Singhania.
