Stockbroker arrested for Rs 5 crore fraud on ex-CIL chief
New Delhi: A 48-year-old stockbroker was arrested for cheating a former chairman of Coal India Limited (CIL) of his life savings of Rs 5 crore through illegal transfer of his shares, the police said on Saturday.
The accused - Sandeep Sehgal - was managing the accounts of the late GL Tandon, former chairman of CIL, who had invested Rs 5 crore in the stock market on Sehgal assuring him a 300 percent return.
"He (Sehgal) was handling the victim's accounts since 2005, and had built a good rapport with him," Harendra Kumar Singh, the additional deputy commissioner of police of the economic offences wing, told a news agency.
According to police, Tandon grew suspicious after he did not receive any returns till 2008, and he then he contacted Sehgal.
However, Sehgal sent letters of assurance promising the returns soon on a forged letterhead of his employer at the time, Apollo Sindhuri Investment Ltd.
Tandon passed away in August 2012. It was then that his family came to know about the issue and registered a complaint with the police.
A first information report was filed in November 2012, and Sehgal was arrested on Thursday from his home in south Delhi's Greater Kailash II.
Sehgal is an alumnus of the Indian School of Mines and also holds B Tech and MBA degrees.
GL Tandon received the Padma Bhushan award in 1986.