Arun Kumar Sharma, director of Lotus Refinery, one of the borrowers of National Stock Exchange Limited (NSEL), was arrested on Monday by the Mumbai police in the Rs.5,600-crore NSEL payment scam.
The Economic Offences Wing ( EOW) of the Mumbai police that is investigating the case claims that Lotus Refinery had over Rs.150 crore outstanding and had illegally borrowed the money as ‘loan’ from NSEL.
The company was not entitled to grant the loan, the police claimed.
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He is the second defaulter who has been arrested. Last month, the police had arrested Nilesh Patel, chairman and director of NK Protiens.
On September 30, one of the investors had filed an FIR against the directors and key management persons of NSEL for cheating, forgery, criminal breach of trust and conspiracy.Six people, including the CFO, Anjani Sinha, two vice-presidents — Amit Mukherjee and Jay Bahukhundi — have already been arrested by the Mumbai police.