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Mesco group chief held in fraud case

The Central Bureau of Investigation or CBI has arrested Jitender Kumar Singh, chairman, the Mesco group of companies, and Deepak Singh, the group's finance chief, for allegedly cheating banks, financial institutions, insurance companies and shareholders to the tune of several millions of rupees.

The CBI has said in New Delhi today after the arrest that Singh's company Mideast India Limited had cheated United India Insurance Company to the tune of Rs 120 million. Mideast has been accused of submitting false "No Objection Certificate" or NOC purportedly issued by Y V Luthra of IFCI and obtaining payments on the basis of fake NOCs.

The CBI further accused Mideast of issuing over 2.7 million fake share certificates and pledging them as security to the Small Industries Development Bank of India or SIDBI , the Bank of Baroda, Federal Bank, the Bank of Madura and Banque Nationale de Paris for availing loans.

The accused were produced before Metropolitan Magistrate Reena Singh Nag who remanded them to police custody till May 26 for interrogation by the CBI.

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