Financial Daily from THE HINDU group of publications
Wednesday, Oct 09, 2002
Financial Daily from THE HINDU group of publications Wednesday, Oct 09, 2002 |
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Economic Offences Markets - Stock Exchanges CSE probe: ED looking into FEMA violations Our Bureau
KOLKATA, Oct. 8 THE Enforcement Directorate (ED), Mumbai, today made enquiries about possible violation of Foreign Exchange Management Act (FEMA) by the persons accused in the Calcutta Stock Exchange case. This happened on a day marked by the questioning of Mr B.V. Goud, former Managing Director of Stock Holding Corporation of India Ltd (SHCIL), and Mr Arup S. Bagchi, eastern India chief of SHCIL. The interrogation, a first of sorts in the ongoing investigation, went on for several hours. Mr Goud has been asked to depose on Wednesday as well, it was learnt. The Mumbai ED is looking for clues on the alleged hawala transactions made by the tainted CSE brokers, said Mr Soumen Mitra, Deputy Commissioner (Detective Department), in his regular interaction with the Press. "Mr R.K. Pande, Deputy Director with Mumbai ED, has contacted us in this regard," he said, adding that a team comprising senior officers of the directorate was expected to meet the investigating officers of Kolkata Police soon. Mr Mitra also hinted at the possibility of requesting the representatives of IndusInd Bank (which is locked in a legal battle with SHCIL) to appear before him. If required, the bank will be asked to provide clarifications, it is learnt. As is well known by now, a couple of schemes introduced by SHCIL will come under police scrutiny. "We would like to ascertain whether any favours have been granted out of turn or exceptions made to the accused persons," Mr Mitra said. When contacted, Mr Bhaskar Ghose, Managing Director of IndusInd Bank, denied any association with the CSE brokers. "We will depose before the Kolkata Police by all means. There has been no collusion between IndusInd Bank and Calcutta Stock Exchange," he told Business Line from Mumbai. Elsewhere in the city, the police raided an office of Mr D.K. Singhania, one of the accused brokers, and examined certain documents. Incidentally, no fresh developments have taken place on the matter of issuing an arrest warrant for the elusive Dinesh Dalmia, promoter of the DSQ group of companies. The Chief Metropolitan Magistrate, meanwhile, remanded six of the accused persons (belonging to the Biyani and Singhania groups) to one day of further police custody. A tired Mr Goud when contacted by Business Line said: "I have tried my best to present the SHCIL case before the Kolkata Police. There has been no abuse of any of our schemes to the best of my knowledge." In reference to police's query whether any favour was accorded by SHCIL to the accused brokers, Mr Goud said that no special favour was given to any individual. "Everything was done in the normal course of action," he added.
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