Mumbai: The economic offences wing (EOW), probing the Rs 5,600-crore financial fraud allegedly perpetrated by the National Spot Exchange (NSEL) and others, froze Rs 18 crore in various bank accounts, including that of NSEL. Moreover, it has issued a lookout notice to all airports against 20 persons so that they cannot flee the country. Jignesh Shah, chairman of FTIL group, and others have been summoned to give their statement to the EOW.
On September 30, the EOW registered an FIR against Financial Technologies India (FTIL) that owns NSEL, its office bearers and two dozen private firms for cheating. “We have made a list of 62 warehouses to be raided. Till today, we have already raided 58 warehouses and found that there are no goods in 30 warehouses, while four warehouses have bogus addresses. In some warehouses, the goods are much lesser than what was declared,” said an officer who is part of the probe team.
On Tuesday, EOW conducted searches at the offices and residential premises of the office bearers of N K Proteins and Mohan India. N K Proteins owes around Rs 930 crore to NSEL and Mohan India is one of the largest borrowers at the exchange.
“We expect that everyone cooperate with the probe in the larger interest of investors. Our teams are doing a good job and we have seized some incriminating materials too,” said Rajvardhan Sinha, additional commissioner of police, EOW. The police have issued notices to 74 people, including those mentioned in the FIR, under section 160 of CrPC (to appear before the investigating officer for making a statement).
The Times of India, October 4, 2013