CBI extends custody of Kaustuv Ray, Shivaji Panja

They had been arrested on March 15 on charges of misappropriating Rs 515.15 crore, that they had managed to get from several banks by providing "false and fabricated" documents and the loan was taken for their business of manufacturing and trading computers under the brand name of "Chirag".

CBI had arrested them after interrogation at CGO Complex in Salt Lake and they were remanded in the custody of the investigating agency when produced before the court on March 16.

CBI had arrested them after conducting a preliminary investigation based on the complaint lodged by D V Prasad, deputy general manager of the Circle Office of Canara Bank in Kolkata, against RP Info Systems Ltd and its directors Shivaji Panja, Kaustuv Ray and Vinay Bafna. Complaints were lodged against unknown bank officials as well.

On Monday, the CBI counsel pleaded before the court to extend custody of the duo to the investigation agency as the investigating officer wants to question them further in connection with the scam.

The defence counsel has objected against CBI's plea of extension of remand. But the CBI counsel has explained before the court the need to take them in extended remand as they want to question the two men further, in order to probe into the money trail.

This comes at the time when Enforcement Directorate (ED) has also initiated a probe against the company. They have also started gathering documents to probe into the alleged scam.