Yogesh Labshankar Vyas (46), director of Solar Pharmachem Ltd, was arrested for failing to return the money he borrowed from the finance company, Suchar Enterprises in April 1995.

Yogesh along with his brother Harshad, also a director in Solar, had sought a loan of Rs 26.20 lakh to revive their company which was closed since 1993. However, the finance company gave Rs 24.82 lakh with shares of Solar as security and obtained post-dated cheques from Vyas brothers for repayment.

The fraud came to light when all the post-dated cheques were dishonoured when deposited with the bank. Suchar lodged a complaint at the magistrate's court. However, the brothers were not available whenever they were approached by the finance company nor were they present during the dates of court hearing, police said.

When the finance company tried to sell Solar shares to recover the loan amount, the certificates were found to be bogus. Suchar lodged a complaint with the Cuffe Parade police station. Yogesh was arrested from his Churchgate residence on Wednesday evening.

Preliminary enquiries revealed that the brothers along with an associate had duped several financial companies in Bangalore, Valsad and Mumbai. On Thursday Yogesh was produced before Additional Chief Metropolitan Magistrate of the 37th court A A A Kidwai who remanded him to police custody till January 22, 1999.