FTIL founder Jignesh Shah arrested in money laundering case
The Mumbai zone unit of the Enforcement Directorate (ED) on Tuesday arrested Financial Technologies India Ltd (FTIL) founder Jignesh Shah in a money laundering case.mumbai Updated: Jul 13, 2016 01:03 IST
The Mumbai zone unit of the Enforcement Directorate (ED) on Tuesday arrested Financial Technologies India Ltd (FTIL) founder Jignesh Shah in a money laundering case.
“A few facts had emerged in the case in which he was being investigated and was not co-operating. He will be produced before a special court on Wednesday,” said a high-ranking ED officer who did not want to named.
Shah was quizzed on Tuesday before his arrest.
In March last year, the ED had filed a case in a special court against 68 accused, including directors, key officials, defaulting members and others in the National Stock Exchange Limited (NSEL) scam.
ED sources said investigations established that money taken from investors was siphoned off and used to purchase properties and luxury items, repay loans, and run businesses.
The ED has attached assets worth Rs 850 crore of the defaulting firms accused in the Rs 5,600-crore scam.
The attachment included a castor oil plant of Gujarat-based NK Proteins Limited at Kadi in Mehsana, Gujarat, worth Rs 278.18 crore. NK Proteins was declared one of the biggest defaulter in the NSEL scam.
Investigations revealed that the NSEL was meant to be a platform for exchange of various commodities, which were to be kept in the warehouse. In reality, however, the commodities were not in stock.
The fraud case involves irregularities in futures trade of commodities, and misappropriation and embezzlement of funds. The Economic Offence Wing, the main agency investigating the case, has arrested 24 people in the case so far.
Shah was first arrested by the EOW and granted bail in 2014.
Two charge-sheets were in the case, including a 9,360 page charge-sheet against Shah, the main accused and the chairman of FTIL, in the fraud case. The EOW has also attached immovable properties worth over Rs 4,902.18 crore.