Search the Internet          Tips  Sites: Finance, Investment

Ketan Sheth remanded to police custody till June 6

Tainted broker, Ketan Sheth, held on the charge of swindling Raghuvanshi Cooperative Bank of Rs 54 million, was on Tuesday remanded to police custody till June 6 by a magistrate.

Forty-year-old Sheth, already in CBI (Central Bureau of Investigation) custody till June 7 in connection with Rs 928 million seamen's provident fund scam case, was arrested on Monday by Mumbai police.

The police had sought permission from a special court to interrogate him in connection with Raghuvanshi Bank case. Accordingly, he was produced before a magistrate today.

On a plea made by his counsel Vijay Garg, Magistrate B A Shelar allowed Ketan Sheth home food and medicines in the prison.

Police submitted before the court that Raghuvanshi Bank had purchased government securities worth Rs 54 million through Home Trade, and added that as it's director Sheth played a key role in siphoning off public funds from the bank.

Ketan's counsel however pointed out that his client had resigned from the board of directors of Home Trade in May 2001 and was not a director of the company at the relevant time of the alleged offence. Hence he had not cheated the bank.

Other Directors of Home Trade are absconding and 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.

ALSO READ:
Co-op banks: Of laxity, loopholes and scams
The Rediff Budget Special
Money

Tell us what you think of this report