Rs 5,600CR FRAUD
Mumbai: The economic offences wing (EOW) on Tuesday arrested Nilesh Patel, managing director of NK Proteins, for his alleged role in the Rs 5,600-crore cheating case of National Spot Exchange (NSEL). Patel will be produced before the Esplanade court on Wednesday.
Police said that Patel was summoned from Ahmedabad for questioning and was later arrested. NK Proteins is the biggest defaulter with dues of about Rs 970 crore, said police sources. “Patel’s firm also invested in Adani group in Gujarat to expand its business. Around Rs 350 crore was used by NK Proteins for initiating a joint venture with the group for export of castor oil seeds. They would pay an interest of Rs 85 lakh a day,” said a senior police officer.
NSEL’s books of accounts show Rs 575 crore was due from NK Proteins, which the latter knew it could not repay but continued its business with investors’ money, said police. Patel’s firm also owned Tirupati oil, a famous brand in Gujarat. Police have hinted that, if required, they would also summon the office bearers of Adani group.
“We have arrested Patel since NK Proteins was the first to start the business model of financing under the garb of paid contract. Moreover, trade was done for oil which was not in their godown,” said Rajvardhan Sinha, additional commissioner of police, EOW.
Patel is the son in-law of NSEL’s former chairman Shankarlal Guru, who had resigned from his post on August 19. Guru, too, was grilled by the EOW last week and was allowed to go home. Till date, besides Patel, the police have arrested Anjani Sinha, Jay Bhaukhundi and Amit Mukherjee in this case. All the accused are being kept at the city police’s headquarters lock-up at Crawford Market.
The FIR was filed by an investor Pankaj Saraf on September 30.
The Times of India, October 23, 2013