Mumbai: Ketan Sheth of Gilt Edge Securities and the third accused in the Rs 92.78 crore Seamen's Provident Fund Organisation scam, in Mumbai on May 14 surrendered to CBI, which later placed him under arrest.

He will be produced before a magistrate's court on May 15.

The CBI and the Maharashtra CID were on the lookout for Sheth, who along with Home Trade CEO Sanjay Agarwal, now in custody in Nagpur, are allegedly involved in defrauding seamen's PF as well as the Rs 150 crore Nagpur District Central Co-operative Bank.

The CBI's bank fraud and securities cell has registered a case against the duo and A K Ghond, chairman of Seamen's PF Organisation, under section 420 (cheating), 409 (breach of trust), 468 (forgery) of IPC, CBI sources said.

According to CBI, Ghond had violated his official position and invested the PF amount with Agarwal and Sheth without taking proper security for ensuring safety of the amount.

The CBI suspect that the funds were routed through two investment firms belonging to Ghond's wife.

Meanwhile, Agarwal is being brought to Mumbai on May 15. The court in Nagpur had agreed with the state CID plea to take him to Mumbai for further interrogation as police had seized 25 computers and a laptop from his office in Navi Mumbai and needs to obtain print-outs of the transactions.

PTI