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Arvind Johari remanded to CBI custody till Aug 7

Arvind Johari, promoter of Lucknow-based Cyberspace Infosys Ltd, held in a case involving misappropriation of Unit Trust of India funds to the tune of Rs 320 million, was on Thursday further remanded to CBI custody till August 7 by a special court in Bombay.

Designated judge S R Mehra rejected the oral bail plea of the accused. He was not represented by any lawyer.

Considering the serious nature of the case and the crucial stage of investigations, custodial interrogation of Johari was essential, the judge said.

Producing the accused before the judge, CBI said he had been confronted with the co-accused, particularly in view of the allegations that he had offered money to a broker to lure top UTI officials to purchase Cyberspace shares at a high price.

However, they refused to divulge what had transpired in the investigations, saying revelation at this juncture would hamper the probe.

Johari was arrested in Lucknow and remanded to police custody. He was brought to Bombay on a transit remand and produced on July 25 before the special court which had remanded him to CBI custody till Thursday.

On July 27, former UTI chairman P S Subramanyam, executive directors, M M Kapoor and S K Basu, and stock broker Rakesh Mehta were remanded to police custody till August 3 by the special court, which had rejected their plea for liberty.

According to CBI, the accused had conspired to make a private placement of 3,45,000 shares at Rs 930 per share aggregating Rs 320.8 million in Cyberspace Infosys Ltd.

The agency alleged that Rs 320.8 million, received from UTI, was diverted by Cyberspace Infosys and its directors for purposes other than it was solicited.

CBI alleged that Rakesh Mehta, director of Renaissance Securities, was paid Rs 5 million by directors of Cyberspace Infosys to prevail upon UTI to subscribe to 3,45,000 shares of the company at Rs 930 per share.

The special court directed CBI to forward 'rojnama' copies to the magistrate at Lucknow where Johari was first produced.

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