rediff.com: ED files complaint against DSQ software

Enforcement Directorate on Thursday filed a complaint against DSQ software and its owner Dinesh Dalmia for allegedly acquiring foreign exchange to the tune of Rs 296 million through illegal means.

Highly placed ED sources said the complaint was filed in a designated court of Mumbai, which took cognisance.

The ED alleged that the software firm had contravened and violated section 8 (1) of Stock Exchange by giving false information to the Bombay Stock Exchange.

According to the complaint, DSQ had notified BSE that it was selling 3 million shares of its company to a London based firm -- New Vision Investment.

The company later informed the SE that it had received Ł4.6 from the UK-based firm.

Following a request by the stock exchange, the ED registered a case and summoned the owner of DSQ software Dinesh Dalmia, who submitted that the London based firm could not send the remaining 90 per cent of the money and hence the 10 per cent amount had been forfeited.

The sources, however, Dalmia in his communication to the SE on January 2001 had stated that they had received the entire amount from the New Vision Investment.

Sources said that by doing so Dinesh Dalmia and others had made a false statement to the Bombay Stock Exchange and thus were in receipt of foreign exchange through illegal means.

The Enforcement Directorate has to file complaints regarding all Foreign Exchange Regulations Act cases by Friday when the law ceases to be in force and will be replaced by a softer law Foreign Exchange Management Act.



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