New Delhi, Feb 26 (IANS): The Serious Fraud Investigation Office (SFIO) said on Friday that it has arrested three persons of a private firm, Jagar Agro Commodities, in connection with an alleged fraud of several hundred crores of rupees.

Those areested have been identified as Satish Kimar Pawa, Saurav Aggarwal and Suhas S. Paranjpe.

The investigation was assigned by the Ministry of Corporate Affairs to SFIO based on the orders passed by the National Company Law Tribunal (NCLT).

"Satish Kumar Pawa, promoter and shareholder, Saurav Aggarwal and Suhas S. Paranjpe have been arrested by the SFIO in connection with the investigation into the affairs of Jagat Agro Commodities Pvt Ltd," said an official.

The arrests have been made by the SFIO in exercise of the powers under Section 212(8) of the Companies Act, based on the material in its possession which has revealed that these persons were guilty of indulging in serious corporate fraud punishable under Section 447 of the Companies Act.

"They had falsified the financial statements over a period of three years by inflating their stock position and falsely induced banks to lend on the strength of the falsified financial statements. The company borrowed funds from public banks and siphoned them off through various channels," said the official.

After being produced before a special court in Mumbai, the trio has been sent to SFIO custody till March 1.