‘Dabba trading’ accused VD Aggarwal denied bail
22 Dec 2013 5:05 AM IST
A Delhi court on Friday dismissed the bail application of Abhipra Commodity Consultants Pvt Ltd owner Vishnu Dev Aggarwal in a stock transaction fraud case.
Advocate Pradeep Rana, counsel of victim Deepak Gupta on Friday opposed the bail plea of accused VD Aggarwal who was sent to 14-days judicial custody on 19 December. Gupta has alleged that Aggarwal duped him of Rs 3 crore in the case.
The accused was arrested by Delhi police on 13 December and immediately produced before the court. He was then remanded to five day police custody as the court was satisfied that the move was imperative for the collection of material evidence and further investigation.
Explaining Aggarwal’s crime, DCP Economic Offences Wing (EOW) SD Mishra said, ‘VD Aggarwal faces an accusation of being involved in “Dabba Trading” (a process used by brokers to route their clients transactions in such a way that the investor’s trades do not get executed on the stock exchange system but in the dabba operator’s books only. In such transactions, the broker executes the order on his own. This saves transaction costs for both the broker and the client), an economic offence.’
The FIR in the case was lodged on 18 January, 2008, and after years of investigation, the accused was arrested on 13 December.
Defending his client, Aggarwal’s counsel said: ‘The FIR was lodged in 2008 and since then the police did not consider it appropriate to arrest my client. Suddenly, after five years without any clear cause, the police arrested him on 13 December.’
However the court while dismissing the bail plea said, ‘The document produced before the court by the investigation officer and the allegations against the accused are not illusory in nature. In control of affairs of the company that was providing service to the complainant the accused may be having information that may be required by the police and thus the arrest of the accused in not unjustified.’
According to sources, Abhipra Commodity Consultants was set up by VD Aggarwal along with his son at Model Town, Delhi in 2007. The duo allegedly started committing fraud since then.
According to the police, a complaint was received in 2007 against the company from Nitin Goel. Goel had alleged that the father-son duo was engaged in bogus commodity transaction.
‘The accused person conducted huge transaction and furnished the details of these transactions to Goel till December 2005. However, the company suddenly stopped sending the financial ledger of National Multi Commodity Exchange (NMCE) to Goel and it was learnt that the company is incurring huge loses,’ police added.
Aggarwal’s plea was dismissed by chief metropolitan magistrate Manoj Kumar.
Advocate Pradeep Rana, counsel of victim Deepak Gupta on Friday opposed the bail plea of accused VD Aggarwal who was sent to 14-days judicial custody on 19 December. Gupta has alleged that Aggarwal duped him of Rs 3 crore in the case.
The accused was arrested by Delhi police on 13 December and immediately produced before the court. He was then remanded to five day police custody as the court was satisfied that the move was imperative for the collection of material evidence and further investigation.
Explaining Aggarwal’s crime, DCP Economic Offences Wing (EOW) SD Mishra said, ‘VD Aggarwal faces an accusation of being involved in “Dabba Trading” (a process used by brokers to route their clients transactions in such a way that the investor’s trades do not get executed on the stock exchange system but in the dabba operator’s books only. In such transactions, the broker executes the order on his own. This saves transaction costs for both the broker and the client), an economic offence.’
The FIR in the case was lodged on 18 January, 2008, and after years of investigation, the accused was arrested on 13 December.
Defending his client, Aggarwal’s counsel said: ‘The FIR was lodged in 2008 and since then the police did not consider it appropriate to arrest my client. Suddenly, after five years without any clear cause, the police arrested him on 13 December.’
However the court while dismissing the bail plea said, ‘The document produced before the court by the investigation officer and the allegations against the accused are not illusory in nature. In control of affairs of the company that was providing service to the complainant the accused may be having information that may be required by the police and thus the arrest of the accused in not unjustified.’
According to sources, Abhipra Commodity Consultants was set up by VD Aggarwal along with his son at Model Town, Delhi in 2007. The duo allegedly started committing fraud since then.
According to the police, a complaint was received in 2007 against the company from Nitin Goel. Goel had alleged that the father-son duo was engaged in bogus commodity transaction.
‘The accused person conducted huge transaction and furnished the details of these transactions to Goel till December 2005. However, the company suddenly stopped sending the financial ledger of National Multi Commodity Exchange (NMCE) to Goel and it was learnt that the company is incurring huge loses,’ police added.
Aggarwal’s plea was dismissed by chief metropolitan magistrate Manoj Kumar.
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