Delhi based AFSPL Director arrested by EOW for swindling of Rs.344 crores of Dalmia Bharat

The Economic Offences Wing (EOW) of Delhi Police has arrested Allied Financial Services Pvt. Ltd. (AFSPL) Director Awanish Kumar Mishra for swindling of Rs. 344 crores. He was arrested on charges of criminal conspiracy, fraud and cheating which were put forward by the Dalmia Bharat group.

Sanjeev Gemawat, Executive Director of Dalmia Cement had lodged a complaint in March this year alleging that AFSPL, Money Mishra Overseas Pvt Ltd, National Securities Depository Ltd (NSDL) and IL&FS Securities Services Ltd (ISSL) have duped them.

Dalmia Cement was holding securities or mutual funds worth Rs 344.07 crore in two Demat accounts with AFSPL. These were allegedly fraudulently transferred on forged documents and pledged with another company.

Dalmia Cements decided to redeem their securities and submitted redemption requests last year to AFSPL. However, Dalmia Cements was informed that there were no securities available in their Demat accounts.

In his complaint, Gemawat has alleged that a criminal conspiracy was hatched. “AFSPL, Money Mishra Overseas and their director Awanish Mishra, fraudently transferred securities from their own account to the account of IL&FS, who in turn seems to have offered the same as collateral to NSE clearing corporations, fully knowning that securities belonged to Dalmia group.”

The case is also being investigated by the Serious Fraud Investigation Office (SFIO). Securities and Exchange Board of India (SEBI) has ordered a forensic audit.