Financial Daily from THE HINDU group of publications
Wednesday, May 15, 2002
Financial Daily from THE HINDU group of publications Wednesday, May 15, 2002 |
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Govt Bonds Money & Banking - Govt Bonds Industry & Economy - Economic Offences CBI arrests Ketan Sheth Our Bureau
MUMBAI, May 14 THE Central Bureau of Investigation (CBI) today arrested Mr Ketan Sheth, promoter of Gilt Edge Securities, in connection with the Government securities scam. Investigative agency sources said Mr Sheth surrendered to the CBI's Banking, Securities and Fraud Cell here this afternoon. Mr Sheth would be produced before the court tomorrow. The stockbroker is alleged to have committed irregularities in Government securities' trading. Mr Sheth, along with Mr Sanjay Agarwal of Home Trade Ltd, reportedly duped several co-operative banks and the Seamen's Provident Fund (SPF) of about Rs 400 crore. As the probe widens, sources said, the involvement of more entities might come to light. CBI sources said that the interrogation of Mr Sheth was in progress and that he had given them information about several things, which could not be disclosed at the moment. Investigators believe he is the link between the now-displaced SPF Commissioner, Mr Arun K. Gond, and Mr Agarwal. He reportedly introduced the two to each other. Mr Gond is in CBI custody in Mumbai and Mr Agarwal is with the State CID in Nagpur. The State CID had, on May 3, arrested Mr Sunil Kedar, the Chairman of Nagpur District Central Co-operative Bank, reportedly the worst hit of all the banks, for colluding with rogue operators and causing a loss of about Rs 125 crore to the bank. According to sources, Mr Sheth and Mr Agarwal, as brokers, took money from the co-operative banks and SPF for purchasing gilts. They, however, never delivered the securities to their "clients." Allegedly, the fraud was committed in collusion with the top officials of the banks and the SPF Commissioner. Apart from running about a dozen companies dealing in the entire range of capital market activities, Mr Sheth also used to be a director on the board of Home Trade. He, however, quit the Home Trade board last year. Mr Sheth started off as a gilts trader around 1990 with J.G. Shah Securities, but later on started off on his own.
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