Three remanded to CBI custody in IPO scam

Mumbai, Feb 23 (UNI) Three persons out of the total seven arrested by the Central Bureau of Investigation (CBI) yesterday in connection with the fraud over the Initial Public Offering issues of Yes Bank Ltd and Infrastructure Development Finance Corp, were today remanded to CBI custody till March one.

Purushottam Budhani, Manoj Dev Seksaria and Dushyant Dalal were produced before Special CBI Court where Mr Justice S R Mehta remanded them to police custody.

CBI told the court that the accused--all dealing in share business, had entered into a conspiracy last year in Ahmedabad, Delhi and Mumbai to illegally open Demat accounts to receive the shares of IDFC offered to the public.

The Modus Operandi was that they opened several bogus demat accounts in HDFC Bank, ING Vysya and Bharat Overseas Bank in Mumbai and Vijaya Bank in Ahmedabad and received shares at Initial Public offering prices of Rs 34 and sold at a higher price of Rs 60 -- earning a profit of over Rs 30 crores.

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