The Delhi police have arrested top officials of Home Trade allegedly involved in the multi-crore government securities scam that shook the financial sector last year.
Sanjay Hariom Aggarwal, Ketan Seth and Subodh Bhandari, directors and vice president, of Home Trade were arrested from Surat, police said in New Delhi on Tuesday.
Home Trade is alleged to have siphoned off around Rs 800 crore (Rs 8 billion) from urban cooperative banks, concentrated mainly in Gujarat and Maharashtra, by purchasing government securities on behalf of these banks.
The Delhi police action in this regard followed a bunch of FIRs registered on complaints by several companies, including Bajaj Capital, alleging that Home Trade cheated them on the purchase of government securities (G-secs) and did not deliver the securities to them.
A case was registered against Home Trade under various sections of Indian Penal Code for entering into criminal conspiracy to cheat the investors.
Many prominent film and sports personalities had endorsed the scam-tainted company in its promotional activities.
There are 21 cases against the accused officials of the Home Trade elsewhere in the country, police said.
