In one of the biggest cases in recent times, the economic offences wing (EOW) of the Mumbai crime branch on Monday registered a first information report (FIR) against Financial Technologies India Limited (FTIL), the board of directors of National Spot Exchange Limited (NSEL), including Jignesh Shah and 25 borrowing companies, in a `5,600-crore payment default case pertaining to 13,000 investors. Following the FIR, massive raids were conducted by the 63 teams of the EOW all over the country on 185 premises.
Himanshu Roy, joint commissioner of police (crime), Mumbai, said the FIR was registered after a month-long inquiry and prima facie an offence was established.A complaint in this regard was made to the EOW by Pankaj Saraf of the NSEL investors’ forum, based on which a FIR was registered after the inquiry.
The case has been registered for misrepresentation of facts to investors, creating forged documents and warehouses, and creating falsified accounts among others.
The accused include FTIL, the board of directors of NSEL who include: Joseph Massey, Jignesh Shah, Anjali Sinha, Shantilala Guru, PD Pawar, Shrikant Javal­gekar, R Devarajan, Amit Mukherjee and Jai Bahukhundi.
NSEL has not been able to meet its settlement commitments since the crisis broke a little over a month ago.
There are also allegations that stocks in warehouses didn’t match the volumes of commodities traded on the exchange.
Warehouses found empty during NSEL scam raids
Mumbai: In one of its biggest ope­rations, the economic offences wing (EOW) of the Mumbai crime branch probing irregularities in the National Spot Exchange Ltd (NSEL) on Monday raided over 185 locations all over the country. The raids are likely to go on till Tuesday.
Himanshu Roy, joint commissioner of police (crime), Mumbai said 45-odd warehouses were found to be empty during the raids. These warehouses were supposed to be storing the commodities that were being traded on the NSEL.
Roy said they were seizing electronic evidence and sealing warehouses. Officials said they were taking copies of the hard disks for analysing the data.
A forensic auditor was already helping in the case along with members of the crime branch and cyber cell. “The accused tried to sell goods which were not there and the transactions were made when there were no goods at all,” an official said.
In economic offences, arrests are made only after obtaining evidence first.
The Enforcement Directorate (ED) would be roped in as only that agency can invoke teh the Prevention of Money Laundering Act (PMLA).
The EOW is likely to open a grievance cell for investors to lodge complaints.