CBI to arrest Agarwal in Seamen’s PF scam

While Agarwal was taken to his Vashi offices by the Nagpur Police to decode his computers which was on till late evening, co-accused Ketan Sheth of Gilt Edge was facing intensive interrogation by the CBI at its Mumbai headquarters. Later in the day, Sheth was produced in the court which remanded him to CBI custody till May 27, for further questioning.

According to CBI officials, their initial investigations have shown a well entrenched nexus among Sheth, Agarwal and third accused—former commissioner of Seamen’s Provident Fund, A. K. Ghond—to defraud the Seamen’s Provident Fund to the tune of Rs 92 crore. Here too, the modus operandi was similar as the trio took funds from the PF to buy government securities but siphoned off funds to their own accounts. This would be second case foisted against Agarwal who has taken a dozen co-operative banks for a ride by taking Rs 270 crore from them to buy government securities but failed to deliver the securities. CBI officials said they are investigating the Home Trade fraud in coordination with crime investigation department of Maharashtra police and their top priority is to trace the funds. “We have got a lot of experience in the Madhavpura investigation and we are sure that we will crack this case too,” say CBI officials.

CBI officials said that they are not pressing for Agarwal’s custody now as he has been already remanded to police custody by a Nagpur court. “Let the Nagpur police complete its investigation… we will arrest him as soon as his remand in the Gujarat Co-operative bank case is over,” CBI officials added.

On the other hand, visibly shaken and unshaved Sheth, who surrendered before CBI here on Tuesday, told the court that he is unwell and prayed for a short remand which was turned down by the designated judge U.D. Salvi. CBI prosecutor Gul Asnani informed the court that the agency had yet to trace Rs 93 crore public funds and hence custodial interrogation of the Sheth was necessary. Sheth initially gave evasive replies about the whereabouts of funds. However, after confrontation with Ghond he had admitted his association with investments and the diversion of funds.