Jignesh Shah, Javalgekar Remanded to Judicial Custody
Jignesh Shah, vice chairman of the scam-hit National Spot Exchange Ltd (NSEL), and Shreekant Javalgekar, former group finance director of Financial Technologies (FT), the exchange’s promoter controlled by Shah, were remanded to judicial custody by a sessions court on Monday for their alleged role in the NSEL scam. This paves the way for their lawyers to apply for bail, which is not possible till an accused is kept in police custody. In fact Shah’s lawyers pressed the court to hear his bail application urgently but the judge posted the matter for hearing this Thursday. The public prosecutor earlier prayed that Shah and Javalgekar be remanded to judicial custody for their alleged role in perpetrating the .` 5,600-crore fraud on NSEL. Shah’s lawyers have sought to pin the blame for the scam on the bourse’s former management team led by Anjani Sinha, its former MD, and a few others who were recently granted bail by Bombay High Court. Shah and Javalgekar will be sent to the Arthur Road Jail in Mumbai. At one point, Shah’s lawyers pleaded that the Court order the superintendent of the jail to ensure his safety as there was a “threat” to his life, given that a few of NSEL’s former employees — in obvious reference to Anjani Sinha — had been housed there for almost eight months. However, the public prosecutor opposed Shah being given differential treatment and the judge too denied this request. Arguing last Thursday, Mahesh Jethmalani, Shah’s lawyer, said a “Chinese Wall” existed between the NSEL board comprising Shah and its management. He pointed out that prior to Sinha having recanted in a second affidavit, where he placed the blame for the scam squarely on Shah, the incarcerated former managing director of NSEL had in a sworn statement taken the blame solely on himself before the Enforcement Directorate (ED), a central agency that is probing the scam from the money laundering aspect.