CBI arrests Sebi deputy GM in Rs 10 lakh bribery case

MUMBAI: The Central Bureau of Investigation (CBI) has arrested a deputy general manager with market regulator Sebi and a middleman for demanding and accepting a bribe of Rs 10 lakh. The complainant was the owner of an Ahmedabad based firm engaged in share trading that was barred by Sebi from trading in September 2011 for market manipulation using global depository receipts (GDR) issues.

“The DGM rank official of Sebi who was conducting investigation had issued a show cause notice to the firm of the complainant. Meanwhile, the complainant came in contact with the middleman based in Mumbai who assured to get the work done in favour of the complainant claiming close contact with the DGM rank official of Sebi.

The middleman had allegedly demanded Rs 25 lakh from the complainant on behalf of the said official of the Sebi,” CBI said in a press release posted on its website. “The complainant also met the said official of Sebi who asked him to give the bribe amount to the middleman. The accused asked for the first instalment of bribe of Rs 10 lakh.

As the complainant did not want to pay the bribe, he lodged complaint with CBI,” it said.

The enforcement agency laid a trap and the middleman who came to Ahmedabad for taking delivery of bribe was caught accepting Rs 10 lakh on behalf of the Sebi official.

CBI also said searches were conducted at the premises of the middleman and the Sebi official in Mumbai and New Delhi. When contacted, Sebi said, “We understand from a CBI statement issued today (Friday) that one of our officers has been arrested. We are yet to receive any official communication in this regard.”