Mumbai: The economic offences wing (EOW) on Tuesday froze 58 bank accounts, including that of National Spot Exchange (NSEL), as part of their ongoing probe into the Rs 5,600-crore cheating case. In a statement, NSEL said that it was taking legal advice to defreeze the settlement bank accounts, and investors and members will be notified in due course.
On Monday, EOW had registered an FIR against Financial Technologies India (FTIL) that owns NSEL, its office bearers and two dozen private firms for cheating. “One raid was conducted at the office and residence of N K Proteins’s chairman Keshavlal Patel in Gujarat and another search was carried out at the residence and office of Mohan India’s chairman,” said Rajvardhan Sinha, additional commissioner of police, EOW. N K Proteins owes around Rs 930 crore to NSEL and Mohan India is one of the largest borrowers at the exchange.
The FIR filed by an investor Pankaj Saraf named FTIL chairman Jignesh Shah, MCX Stock Exchange MD Joseph Massey and auditor Mukesh Shah, among others. All the accused have been booked for forgery, criminal breach of trust, cheating and criminal conspiracy.
CBI starts preliminary probe into scam
New Delhi: The CBI has started an enquiry into alleged irregularities by NSEL, which is facing a payment settlement problem of Rs 5,600 crore. CBI sources said the economic offences wing (EOW) of the agency’s Mumbai branch had received complaints from investors who lost their money with the spot exchange that is promoted by the Jignesh Shah-led Financial Technologies (FTIL). “We have registered a preliminary enquiry to look into all aspects comprehensively,” CBI spokesperson Kanchan Prasad said. TNN
The Times of India, October 2, 2013