Mumbai:
The Central
Bureau of Investigation (CBI) has arrested Ketan Sheth,
promoter of Gilt Edge Securities, in connection with the
government securities scam. Investigative agency sources
say Sheth surrendered to the CBIs banking, securities
and fraud cell here. Sheth was produced before the court
on 15 May.
Sheth,
along with Sanjay Agarwal of Home Trade Ltd, reportedly
duped several cooperative banks and the Seamens Provident
Fund (SPF) of about Rs 400 crore. As the probe widens,
the sources say, the involvement of more entities might
come to light.
The sources add that the
interrogation of Sheth is in progress and he has 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 Arun K Gond and Agarwal. He
reportedly introduced the two to each other.
Gond is in CBI custody in
Mumbai and Agarwal is with the state CID in Nagpur. The state CID
had, on 3 May, arrested Sunil Kedar, the chairman of Nagpur
District Central Cooperative 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, Sheth and Agarwal, as brokers, took money
from the cooperative 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.
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