iconimg Monday, April 27, 2015

HT Correspondent, Hindustan Times
LUDHIANA, July 01, 2013
The inquiry committee probing into the case of alleged embezzlement of Rs. 1 crore in the Ludhiana Stock Exchange (LSE) Securities Limited has been asked by the board of directors of LSE Limited, the mother company, to submit their report by July 5. A meeting of the board of directors of the LSE Limited, which has majority shares in the LSE Securities Limited, was held under the chairman, VP Gaur, here on Monday, asking the four-member inquiry committee to submit their findings by July 5.

Gaur said Vishal Gumbar, former chairman of the LSE Securities Limited, who was summoned by the board, could not turn up for a hearing due to poor health, but had submitted his written statement before the board. “Even as the inquiry panel was yet to submit its final report, I feel that Gumbar should not be allowed to do any business with any of the two companies. Besides, whatever action the panel recommends, it will be taken against him,” he said.

He, however, denied the possibility of any police action into the case, saying even as final decision with regard to police action would be taken by the inquiry committee; he felt as the whole amount, including interest, was paid back to the company, there was no need of police action.

Meanwhile, a meeting of the inquiry panel was held on Monday, where Gumbar also submitted a written statement before the committee. Chairman of the inquiry committee Ajay Chaudhary said the panel would be submitting the report within the time frame and the action would be taken by the LSE Limited board on the basis of report.

The news of the alleged embezzlement of funds worth Rs. 1 crore rocked the LSE Securities Limited. Some members even alleged that Gumbar had usurped the money by transferring it into his bank account.

Following the allegations, Gumbar resigned as director-cum-member of the board of directors of LSE Securities Limited. Following the Gumbar's resignation, three more employees of the company resigned too from their posts.