New Delhi, Feb 23 (UNI) Seven persons have been arrested in connection with the fraud over the Initial Public Offering issues of Yes Bank Ltd and Infrastructure Development Finance Company, CBI sources said today.
The arrests were made late last night from Mumbai and Ahmedabad following simultaneous raids at 27 places in four cities yesterday.
While financiers Deren Vohra, Jaiyesh Khandwala and their frontmen in the fraud, Deepak Panchal and Parag Jhaveri, were arrested in Ahmedabad, financier Dushyant Natwarlal and his frontmen Purushottam Ghanshyam Budhwani and Manoj Seksaria were arrested in Mumbai, the sources said.
All four arrested in Ahmedabad would be produced in court later today where the agency would seek transit remand to take them to Mumbai for trial. Those arrested in Mumbai would be produced before the designated court there.
Documents seized during the raids in Ahmedabad, Mumbai, Hyderabad and Delhi yesterday were being scrutinised, the sources said.
Those arrested have been accused of having made Rs 32 crore illegal profit by fraudulently cornering a large number of shares of the two companies meant for retail investors.
The CBI had registered two regular cases following a complaint by the Securities and Exchange Board of India.
The accused allegedly cornered the shares by making applications in fictitious names with photographs obtained fraudulently.
Fictitious bank accounts were opened in several banks, the CBI says.
They also opened several fictitious D-mat accounts with Depository Participants to gain access to shares meant for the retail investors.
UNI VN RL DS1322