The Economic Offences Wing of Delhi Police arrested a 48-year-old engineer,who was into share business,on the charge of cheating former chairman of Coal India,G L Tandon,of his lifes savings nearly Rs 5 crore.
But the arrest came a year too late for Tandon,a Padma Bhushan awardee,who passed away in August 2011,at the age of 80.
Police said the accused Sandeep Sehgal a resident of Greater Kailash in Southeast Delhi,was arrested on Friday after Tandons authorised representatives approached EOW last November,alleging that he had been cheated by a person running a financial institution in South Delhi.
According to police,G L Tandon had invested all of his post-retirement savings in the stock market through his demat account,which Sehgal had been managing since 2005.
Sehgal was working as a sub-broker of a firm,Apollo Sindhuri Capital Investment Ltd,based in Chennai. He befriended Tandon and persuaded him to hand over his entire share portfolio and promised him a return of 300 per cent on his investments, Additional Deputy Commissioner of Police (EOW) Harendra Singh said.
Police said the dividends that Tandon received from the shares/equity investments were his only source of income,as he had no pension or retirement benefits his appointments were contractual in nature.
Police said Tandon,the countrys first mining engineer to be honoured with a Padma Bhushan in 1986,had passed out from a reputed institute in Dhanbad.
Around nine years ago,Sehgal introduced himself to Tandon as an alumnus of the same institute and claimed he was a gold medallist of his batch.
Police said Sehgal slowly built a rapport with Tandon and offered to manage Tandons investment portfolio. He promised to triple the amount in a year,police said.
An unsuspecting Tandon agreed to open a demat account with the Chennai-based firm and transferred his entire stocks and holdings to the new account.
In 2008,however,Tandon realised that something was wrong. He was receiving no dividend or share bonus against the shares transferred.
When Tandon contacted Sehgal,he was told that there was some problem with the server of National Securities and Depositary Ltd. To make Tandon buy this story,Sehgal also handed over certain letters from the company detailing the action being taken to rectify the problem. These were later found to be forged, Singh said.
Sehgal,police said,had transferred Tandons shares from his demat account without Tandons knowledge or consent.
We conducted investigations in Delhi and Chennai. Sehgal completed his BTech and later went on to do an MBA. He is currently pursuing law from CCS University in Meerut, Singh said.
Tandon had served in several mineral-based industries including the energy sector for over five decades and was responsible for turning around several ailing units.
He had a high record of performances in Bengal Coal Company,Andrew Yule and Company,National Mineral Development Corporation,Neyveli Lignite Corporation and Coal India Ltd.