Former MD of SHCIL, IndusInd Bank vice-president held

The arrests of B V Goud and S N Paul, former managing director of Stock Holding Corporation of India and senior vice-president of IndusInd Bank, respectively, by the Kolkata police have sent both outfits on fervent damage-control missions.

The head offices of SHCIL and IndusInd Bank, both located in Mumbai, are closely monitoring the situation that has emerged even as senior lawyers have been engaged to defend the arrested individuals.

The top managements of SHCIL and the bank are in close contact with their local offices, say sources in the two organisations. From their attitude, it is clear that each side was defending its position to the fullest extent.

For K C Bandopadhyay, who has only recently taken over as the managing director of SHCIL, a clearer picture is expected to emerge “once legal issues are sorted out and the police get a firm idea of what had actually happened in March 2001 and earlier.“

IndusInd Bank managing director Bhaskar Ghose says the arrest has come as a surprise. “One needs to remember that the case, initiated by the Calcutta Stock Exchange, is sub judice. This fact notwithstanding, the police have taken in one of our officers. This was not quite expected. The bank has a watertight case, complete with all details that will indicate that it is not in collusion with the accused brokers as certain quarters have alleged.“