The Hindu Business Line : Chargesheet filed against ex-MD of SHCIL

Kolkata Police on Friday filed a charge sheet against the former Managing Director of Stock Holding Corporation of India Ltd (SHCIL), Mr B.V. Gaur, at the Chief Metropolitan Magistrate's court here in a criminal case for alleged price rigging at the Calcutta Stock Exchange. The rigging was with regard to one of the Chennai-based DSQ group stocks in March 2001.

A total of 10 people figured in the chargesheet, which also included Mr Dinesh Dalmiya, the promoter of DSQ group and Mr D.K. Singhania, a former Member-Director of the CSE and a close trading associate of Mr Ketan Parekh — the alleged mastermind behind the second biggest securities fraud in the history of country's stock market.

Another case

Earlier, Mr Dalmiya, Mr Sighania and Mr Gaur were taken into custody in cases in relation to the CSE scam. At present, Mr Dalmiya is in judicial custody in another case filed by the CSE involving alleged issuance of fake shares of DSQ Software.

According to Mr Swapan Dasgupta, Officer-in-charge (special cell) of the Kolkata Police, primary charges were framed against the three accused for stock price manipulation through circular trading and conspiracy to siphon off money from the settlement guarantee fund of the CSE.

Interestingly, Mr Gaur had made the initial complaint of alleged price rigging and circular trading in the DSQ Industries counter way back in 2001, when CSE used to have 15-day badla trading cycle. The Kolkata Police, however, charged that the investigations suggest that Mr Gaur had aided and abetted in the defrauding process.

Four former CSE brokers — Mr Harish Biyani, Mr Ramesh Biyani, Mr Raj Kumar Patni and Mr Manmohan Mimani — were also named in the charge sheet for their alleged involvement. Three IndusInd Bank officials — Mr Shanti Nath Pal, Mr K.H. Murthy and Mr L. Vishwanathan — were also charge sheeted for allegedly being part of the conspiracy.

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Chargesheet filed against ex-MD of SHCIL