NSEL case: CBI arrests Shah

MUMBAI: The Central Bureau of Investigation (CBI) on Tuesday arrested Financial Technologies India (FTIL) founder Jignesh Shah and conducted flash raids at nine

MUMBAI: The Central Bureau of Investigation (CBI) on Tuesday arrested Financial Technologies India (FTIL) founder Jignesh Shah and conducted flash raids at nine places in the city.

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“CBI conducted searches at nine places in Mumbai, including the residence and office premises of the said promoter (Shah) of two Mumbai-based private companies; then executive director, Sebi, and others in an on-going investigation of a case. Incriminating documents, including transfer of shares by private companies, FDR, purchase of assets etc, recovered during searches are being scrutinised for further investigation,” a CBI statement said.

The case involves alleged fraud in commodities futures trade, misappropriation and embezzlement of funds. The Economic Offences Wing (EOW), the main agency investigating the case, has arrested 24 people in the case. Shah was arrested by the EOW and was granted bail in 2014. In July this year, the Enforcement Directorate arrested Shah in a money laundering case alleging “lack of co-operation.”

The CBI statement added that the case is “against the promoter of Mumbai-based private company; four then SEBI officials and others on the allegations of connivance of Sebi officials with private company/stock exchange of Mumbai for fraudulently allowing renewal of recognition of said company/stock exchange to conduct trade in currency derivatives in 2009-2010.

Shah, who is at the centre of a storm in the multi-crore National Stock Exchange Limited (NSEL) scam, was in-charge of the overall management and affairs at NSEL, alleged agencies.