A director of India Infoline Ltd, a stock brokerage firm, was arrested on Thursday for allegedly cheating a woman, police said.
The accused identified as Mani Venkataraman, has been held from suburban Bandra, additional police commissioner Amitabh Gupta told PTI.
India Infoline Ltd said in a statement on Thursday that its executive director, Venkataraman, was called upon by the Bandra police for recording his statement in the matter of one its clients, Aarti Gunjikar.
The financial services firm said that the allegations made against its executive director, are baseless and purely on false and frivolous grounds with intent to extort money.
Gunjikar had initially made a complaint to the company in February 2008, alleging unauthorized trading in her account. Afterwards, she filed an arbitration case against the company before the National Stock Exchange.
The arbitration had then passed an award on September 30 seeking India Infoline to pay Rs 500,000 to Gunjikar.
"It may specifically be noted that there are no findings of unauthorized trading against India Infoline by the Arbitration. In view of this the company had filed an appeal before Bombay high court, in December, 2008 against the arbitration award and the matter is sub-judice," the statement said.
Gunjikar is trying to divert the fact that she had incurred losses on account of her transactions and because of market fall during 2008 and trying to extort money illegally, the company said.
She has total disregard to the due legal process which is arbitration process as set out by Securities and Exchange Board of India/National Stock Exchange/Bombay Stock Exchange under the respective laws, rules and regulations. Her arbitration case award was not fully in her favour and there was no findings of unauthorised trading by the arbitration against India Infoline.
"In this circumstance with a view to extort money and cause harassment and defame our reputation she has raised false allegations through police case and press reports," the statement said.
"All actions of the company were as per the rules and regulations of the NSE, BSE and Sebi. We have full faith in the legal system and are taking necessary legal action against the client for raising false allegations and defamation with appropriate Court authorities," the statement said.
