IT firm CEO held for dealing drugs on Net

The CEO of an IT company in Kolkata been arrested by the Narcotics Control Bureau for allegedly selling drugs on the Internet.

Sanjay Kedia, CEO and director-cum-president of Xponse Technologies, Xponse IT Services and Xponse Inc based in Kolkata's IT hub at Salt Lake Sector-V, was arrested on Sunday under the Narcotic Drugs and Psychotropic Substances Act.

Along with US-based Steven Mahana, who owned a 49 per cent share in Xponse, Kedia was allegedly involved in trafficking psychotropic substances, mainly phentermine, on the internet, NCB's Eastern Zonal Director Sandeep Mittal told reporters in Kolkata on Tuesday.

Kedia was produced before a special judge at a court in Barasat on Monday wherein he was sent him to judicial custody.

If convicted, he could face up to 20 years of rigourous imprisonment and a fine of Rs 200,000,

Mittal said. Asked whether Mahana was also arrested, Mittal said enforcement agencies in the US were in touch with him.

"A team will go to the US to interrogate him. We are working out the formalities," he said.

On February 1, a team comprising IT experts and officials of the NCB, customs, central excise and public sector banks conducted searches in Kolkata and New Delhi.

These were supported by simultaneous searches by the US Drug Enforcement Administration.

"Documentary and digital evidence were seized during the searches. Evidence of money laundering in more than 20 Indian and multi-national bank accounts by Kedia and his companies have been seized," Mittal said.