The Enforcement Directorate on Friday interrogated DSQ Software managing director Dinesh Dalmia in connection with the Rs 150 crore default on the Calcutta Stock Exchange (CSE) last year. The interrogation of Dalmia — who is wanted by the Kolkata police but not traceable for a long time — took place in Mumbai and is expected to continue for the next few days, Enforcement Directorate sources said. The officials added that they are not planning to arrest Dalmia because as per FEMA his arrest is not warranted. Ex-CSE V-P arrested KOLKATA: Former vice-president of the CSE K. K. Daga was arrested on Friday in connection with the Rs 150 crore scam at the bourse last year. Police sources said Daga, who was vice-president of the bourse in 2000-01 when the payment crisis surfaced, was arrested after being interrogated for the past couple of days. “More arrests are likely to take place soon,” police sources said. The case relates to suspected foreign exchange violations by Dalmia and DSQ Software when he allotted 14 million shares (worth over Rs 900 crore) to three Mauritius-based Overseas Corporate Bodies. The shares were ostensibly allotted in order to acquire a San Jose based company called Fortuna Technologies in a share swap deal. It also turns out that there may be more than one company registered with the New Vision name and that some shares were diverted to a Delhi registered outfit, which then lent them to a Kolkata broker who was on the verge of a default. The Kolkata police is looking for Dalmia to question him on this default which created a major market crisis in the country.
