For the Stock Holding Corporation of India Ltd (SHCIL), it was a double whammy on Monday. While on one front, two of its top officials had to face arrest, on the other, the company pulled its own broking arm, SHCIL Services Ltd (SSL), to the Company Law Board (CLB).
Officials held, depository drags broking arm to Company Law Board
MUMBAI: For the Stock Holding Corporation of India Ltd (SHCIL), it was a double whammy on Monday. While on one front, two of its top officials had to face arrest, on the other, the company pulled its own broking arm, SHCIL Services Ltd (SSL), to the Company Law Board (CLB).
Executive vice-presidents R H Mewawala and L Vishwanathan were arrested in a case related to a 2001 scam, in which 130 lakh shares worth Rs 595 crore of DSQ Software, then run by Dinesh Dalmia, were offloaded to fake companies.
Dalmia later sold DSQ Software in a profitable deal and was recently reported to be running a BPO business in the US.
SHCIL dragged SSL to the company board after it was found that the management misused authority and secretly agreed to sell up to 40% stake of SHCIL to a doubtful foreign investor.
Regarding the arrests, Rajkumar Bansal, director, SHCIL, said, “The case is a very old one. We do not know why the arrests were made now.
But, it was a technical arrest - a summons by the court - and the two employees were bailed out immediately. We had not received any summons notice.”
There were five names in the chargesheet, but three of them no more work with SHCIL, Bansal added. SHCIL is a joint venture between ICICI Bank, LIC, GIC, UTI, IDBI and IFCI.
In its plea against SSL in CLB, SHCIL said that SSL chairman and managing director R Jayaraman Iyer, chief executive S Ramanathan and six others sold 40% stake of SHCIL “deliberately and with ulterior motives”.
SHCIL had recently suspended Jayaraman, who is also the chairman and managing director of SHCIL.
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