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Ex-CSE president Dinesh K Singhania arrested

Former president of Calcutta Stock Exchange and one of the "main" accused in last year's Rs 120 crore (Rs 1.2 billion) CSE scam Dinesh Kumar Singhania was arrested on Wednesday from his Salt Lake residence, Deputy Commissioner of Police (detective department) Soumen Mitra said.

Singhania was president of the exchange for two terms and also a director when the scam was unearthed in March, 2001, Mitra said.

Terming Singhania's arrest as a "major catch", Mitra said, "Though we had already arrested one of the three accused, Singhania along with Ashok Poddar and his wife Prema Poddar, who owed the most to the exchange, was absconding since September 9 when we started investigation into the case."

Singhania would be produced in a court on Thursday where a police remand would be sought, he said.

Though a number of close associates of Singhania have been arrested during the past few days, including his brother, uncle and nephew, "he (Dinesh Singhania) was evading arrest. He had even failed to comply with notices served to come to us for interrogation," police said.

Singhania's arrest came close on the heels of his indications to go for an out-of-court settlement with the exchange to settle his liabilities a few days ago.

CSE sources said Singhania had recently offered to pay Rs 3 crore (Rs 30 million) to settle his dues, but his proposal was rejected by the exchange authorities, who termed it as "too little and too late".

With the arrest of Singhania, Mitra was hopeful that Poddars too would soon be in their net. A total of 16 persons, including Singhania, have so far been arrested in the case.

Former CEO and managing director of Stock Holding Corporation of India Limited B V Gaud, sr vice-president of Hinduja controlled IndusInd Bank S N Paul, former managing director of SREI Securities and former vice-president of CSE K K Daga along with 13 other brokers and their associates were arrested till November 14.

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