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HC grants bail to Jignesh Shah in NSEL scam

The Bombay high court on Friday granted bail to Financial Technologies (India) Ltd promoter Jignesh Shah, arrested in connection with the alleged fraud of Rs 5,547 crore at the NSEL, saying the investigation has not revealed any link between him and the ill-gotten money.

Updated on: Aug 23, 2014, 09:42:45 IST
Hindustan Times | By , Mumbai
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The Bombay high court on Friday granted bail to Financial Technologies (India) Ltd promoter Jignesh Shah, arrested in connection with the alleged fraud of Rs 5,547 crore at the National Spot Exchange Ltd (NSEL), saying the investigation has not revealed any link between him and the ill-gotten money.

“Though projected a scam of Rs 5,600 crore, the ill-gotten money has not gone to the applicant (Shah) or for that matter to NSEL,” Justice Abhay Thipsay said. Concluding that the money had apparently pocketed by bogus sellers (generally being termed as borrowers), the judge also allowed Shah to be released on furnishing cash security of `5 lakh and granted him two weeks to furnish one or two sureties of the same amount.

The bail is subject to condition that Shah shall remain present before the investigating officer of the Economic Offences Wing of Mumbai police twice a week.

In the 25-page order, the judge further said that though NSEL was supposed to be a spot exchange for trading 52 commodities, no genuine trading appears to be done there and instead it was allowed to be used by bogus “investors” for making money.

 
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