In a huge attachment, the Enforcement Directorate (ED) on Friday attached property worth Rs 1170 crore in the National Stock Exchange Limited (NSEL) case.
ED attached the properties of M/s 63 Moons Technologies Ltd, earlier known as Financial Technologies India Limited (FTIL), the promoting company holding 99.99% of the NSEL shares. “The property attached is in the form of bonds/securities with a face value of Rs 1065 crore (Rs 1140 crore market value) and Rs 30 crore has been attached from an account in HDFC Bank, Fort branch,” said an ED officer.
ED had arrested FTIL founder Jignesh Shah in July this year.
“By virtue of its holding 99.99 % of the shares, FTIL has complete authority over the all the affairs of NSEL, enabling it to appoint all the directors on the board. This gives them effective control over the functioning,” said the officer.
“The NSEL board comprises key management personnel of FTIL (as Shah and Joseph Massey). They had all the authority to frame the rules and regulations of the company. Thus FTIL was fully responsible for the functioning of NSEL and the board allowed trade in spite of repeated defaults, deliberately made towards the non-existence of the stock. Thus, NSEL’s gross income, to the tune of Rs 1112.03crore, is nothing but proceeds of crime.”
The fraud involves alleged misappropriation and embezzlement of funds and commodities. The Economic Offences Wing (EOW), the main agency investigating the case, has arrested 24 persons in connection with the case.
Following uncertainty of returns and the falling trade volumes, the investors began sending complaint applications to the EOW in the middle of August, 2013. A case was registered in the alleged fraud on September 30, 2013, with the MRA Marg police station and the investigation was handed over to the EOW.