Raj Kumar Sharma and Manmohan Menani, directors of Barrel Trading and Investment Company in Kolkata, were arrested in connection with the Rs 120 crore scam at the Calcutta Stock Exchange in March, 2001, the police said on Wednesday.
The two were arrested on Tuesday night after a search and seizure operation at the company's office in central Kolkata.
According to the police, the Barrel Trading and Investment Company in collaboration with DSQ Group promoter Dinesh Dalmiya had indulged in circular trading duping investors and the exchange.
Chief Metropolitan Magistrate S C Mishra, before whom they were produced on Wednesday, remanded them to police custody till February 4, rejecting the bail prayers of Sharma and Menani saying the charges were serious in nature.
It was alleged that the enterprise was a front company of Dinesh Dalmiya, one of the accused in the scam, in Kolkata through which a huge quantity of fake shares of DSQ Industries and DSQ Software were introduced in the market.
Documents available suggest that Dalmiya and another co-accused Harish Chander Biyani had stakes in Barrel Trading and Investment Company, the police said.
