NSEL crises could have been avoided: SFIO to courtUpdated: Dec 08, 2019 00:56 IST
The Serious Fraud Investigation Office (SFIO), in its complaint filed in connection with the 2013 National Spot Exchange Limited (NSEL) fraud case, has claimed that the crises could have been avoided and blamed the business development team of NSEL for the fraud.
In its complaint, SFIO claimed, “Had the NSEL followed its own by-laws, and goods and commodities were available in their so-called accredited warehouse, the settlement crises would not have arisen.”
“The business development team of NSEL, in furtherance of criminal conspiracy, had enrolled the defaulter companies/entities despite being aware of the fact that they were already financially distressed,” SFIO claimed in its complaint.
The agency also claimed that defaulters, as well as the business development team, conspired to avail finances from NSEL in the garb of commodity trading.
The probing agency claimed that even the statutory auditors failed to raise red flags over these transactions.
In 2016, the ministry of corporate affairs had ordered an investigation into NSEL and all the defaulting companies for irregularities, three years after the fraud came in light in 2013.
Following the probe, SFIO has filed a complaint in May this year against 98 accused, which includes Jignesh Shah, member at NSEL management, along with statutory auditors of NSEL and defaulting companies.