BOMBAY(PTI): The big bull operator Harshad Mehta his brother Ashwin three of their associates and three bank officials were arrested on June 4 by the premier investigating agency Central Bureau of Investigation (CBI) on various counts including breach of trust cheating and forgery.

The CBI joint director K.Madhavan said among those arrested were two state bank of India officials A.N.Bavadckar deputy manager (securities division) and R.Sitaraman assistant manager besides C.Ravi Kumar assistant general manager of the national housing bank. Others taken into custody were Pankaj Shah Atul Parikh and Hiten Mehta who belonged to Harshad Mehtas Company.

Madhavan who spearheaded a series of raids at 30 places in the city including premises of Mehta and others said the CBI officers seized documents relating to share transactions investments share holdings and certain contract notes of dealings between SBI and Mehtas companies.

The CBI also sealed some computers and about 10 bank lockers. Harshad Mehta and others would be produced before the Esplanade court here June 5.

Harshad and his brother were picked up from their residence at Worli in Central Bombay June 4 and brought to “Kitab Mahal” the CBIs economic offences wing office in South Bombay in Maharashtra state.

Madhavan said the arrests were made under sections 120(B) 406. 9 467 468 71 477 (A) of the Indian penal code and section 13(2) read with sec. 13 (1) (D) of the prevention of corruption act.

The charges relate to conspiracy criminal breach of trust cheating and dishonesty criminal conspiracy and punishment for using forged documents as genuine and falsification of accounts.

The CBI registered a case at the court of the special judge N.G.Ghotekar June 3 and accordingly obtained search warrants from the additional chief metropolitan magistrate Naik Navarane to carry out the raids June 4

About 150 officials participated in the operation that included raids on the residences of six SBI and NHB officials.

Swift raids were conducted June 4 by sleuths from the CBI on more than 40 office and residential premises of “Big Bull” Harshad Meehta and his associates in four major commercial centers in the country.

An official spokesman said searches which commenced June 4 were simultaneously continuing mainly in the establishments of Harshad Mehta in Bombay Delhi Madras and Bangalore.

A large number of documents were seized during the operations and these were under scrutiny of the officials.

The raids were carried out by the CBI team led by K.Madhavan joint director after obtaining search warrants on the basis of an FIR registered on May 29 in the CBI Special Investigation Unit (STU 10) in Delhi

Madhavan had reached Bombay June 3 to supervise the raids in Bombay where most of Harshad Methas establishments are located.

In its FIR CBI has named 13 accused in the Rs.3078 crore stock scam including Mehta and his wife Jyoti Mehta and some top state bank officials

Mchtas two brothers Ashwani Mehta and Sudhir Mehta have also been named as accused in the FIR.

Others are C.L.Khamani deputy managing director A.N.Bavadekar deputy managing director (security division) and R.Sitaraman an employee of the security division all employed in the state bank of India Bombay.

Besides the Mehtas three employees of Messers Growmore and Mazda group owned by the Bombay broker Pankaj V.Shah Atul Parikh and Hiten Mehta also figure in the FIR a CBI spokesman said. Meanwhile official sources said the government was probing the possible Nexus between top officials and foreign banks in the light of the findings of the RBI committee on the scam.

A central agency has been entrusted with the task of collecting details about government officials particularly those wards and close relatives were employed in foreign banks.

Article extracted from this publication >> June 19, 1992