Mumbai: The economic offences wing (EOW) probing the Rs 5,600-crore cheating case involving National Spot Exchange (NSEL) and other companies on Thursday arrested Jay Bhaukhundi, former assistant VP of NSEL, for not conducting a proper verification of brokers, warehouses and members. The EOW on Wednesday had arrested Amit Mukherjee, another former assistant VP.
Mukherjee (40), was produced before the Esplanade court where he was remanded in police custody till October 18. Bhaukhundi will be produced before the court on Friday. “Mukherjee told police that it was Bhaukhundi who was responsible for verifications,” said Rajvardhan Sinha, ACP, EOW.
The agency is now probing how entries were made in NSEL records on August 8 and August 9, 2013 after police began their probe. For instance, NSEL showed an outstanding Rs 900 crore owed to M K Proteins, indicating that sugar worth Rs 900 crore was sent. Going by that calculation, more than 16,000 trucks would be required for delivery of sugar. “Where are the receipts of delivery, toll naka or payment to truck drivers? Who delivered the sugar?” said Sinha. M K Proteinshas invested money in real estate.
Two PSUs including MMTC have lost more than Rs 300 crore in the case. MMTC has approached the CBI. Several agencies, including CBI, ED, I-T department, etc, are closely coordinating with EOW.
NSEL has alleged that Bhaukhundi took bribes from defaulting companies. Mukherjee and Bhaukhundi have been kept at the crime branch lock up where slain Pakistani gunman, Ajmal Kasab, was lodged for three months. Meanwhile, the Bombay HC adjourned a PIL filed on the NSEL controversy and clubbed it with other petitions filed by investors.
CBI may end probe to avoid duplication
New Delhi: To avoid duplication of probes, CBI may close its inquiry into alleged irregularities and duping of customers by NSEL, which is facing a Rs 5,600-crore payment crisis. Sources said the Mumbai Police’s EOW had professional expertise and was competent to investigate the case. They, however, said the agency would probe the alleged irregularities if the government or any competent court directed it to do so. TNN
The Times of India, October 11, 2013