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Scope of Home Trade probe expanded; more arrests likely

The Home Trade scam could involve the misappropriation of at least Rs 500 crore (Rs 5 billion), as irregularities have been traced in other parts of the country, including a provident fund scheme in Kolkata, police sources said in Mumbai.

"The scam would touch the Rs 500 crore (Rs 5 billion) figure and irregularities have been noticed in several states including Gujarat and West Bengal," sources in Economic Offences branch said.

In Kolkata, the group's involvement has been linked to the Rs 82 lakh (Rs 8.2 million) forgery in a employees provident fund scheme, sources said, adding a two-member team of Anti-Corruption Branch, Kolkata, arrived in Mumbai on Thursday to pursue further investigations.

Six persons, including Home Trade chairman Sanjay Agarwal and director (securities trade) Ketan Seth, were arrested after the scam, involving at least Rs 300 crore (Rs 3 billion), came to light.

"More arrests, particularly of the directors, were likely," sources said.

Besides, Bengal, the irregularities have been detected in Surat, Valsad and other parts of Gujarat, sources said. "In Gujarat, a scam of Rs 25 crore (Rs 250 million) involved various cooperative banks."

While Agarwal was earlier granted conditional bail, Sheth's bail plea was granted on Thursday, sources said adding four others including chairman, vice chairman and general manager of Raghuvanshi Co-operative Bank and an employee of the Home Trade were released on bail.

Raghuvanshi Bank had purchased government securities worth Rs 5.4 crore (Rs 54 million) through Home Trade. Sheth was its director and played a key role in siphoning off public funds from the bank. Other directors of Home Trade are allegedly absconding and the cash has yet to be recovered.

Police said Raghuvanshi Bank was only possessing contract note of the purchase of these government securities. It was not in physical possession of these securities.

It transpired during audit that the bank had made nine transactions with Home Trade regarding purchase of government securities but never got their delivery.

Ketan Sheth gets bail

A court on Thursday granted bail to Sheth and Ashok Choudhary, deposed general manager of Nagpur District Central Co-operative Bank, facing criminal charges in Rs 150 crore (Rs 1.5 billion) gilt scam.

Granting the bail on expiry of 60 days in detention, Judicial Magistrate First Class M R Purwar directed them to furnish cash surety of Rs 100,000 each.

The court also directed them not to leave their places and make themselves available to the investigating agency, Maharashtra Crime Investigation Department, as and when necessary.

Both the accused are facing criminal charges under sections 406, 409, 468, and 34 of Indian Penal Code along with main accused NDCCB's deposed chairman Sunil Kedar and Sanjay Agarwal.

Kedar arrested on May 3, following a complaint filed by district auditor Bhausaheb Avsar on April 29, was earlier granted conditional bail.

He was booked along with five broking firms, namely Home Trade Ltd, Century Dealers and Giltedge Management Service (all from Mumbai), Indramani Management Services, Kolkata and Syndicate Management Services, Ahmedabad.

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