Shah sent to 14-day judicial custody

A Central Bureau of Investigation (CBI) court has granted judicial custody to Jignesh Shah till October 10 in the case of alleged suppression of facts while seeking the license for MCX-SX (now Metropolitan Stock Exchange of India or MSEI).

The court observed there was no development in the investigation for the past five days since Shah was sent to police/CBI custody. While rejecting Shah’s bail plea, the court refused to extend the police custody because the CBI couldn’t furnish fresh reasons for further remand of the accused.

Shah’s counsel Amit Desai argued that the allegation of cheating (Section 420 of the IPC) on account of suppression of the details of the buyback arrangement held no ground. Also, Section 13 (1) (d) (iii) of the Prevention of Corruption Act was related to public servants and couldn’t be invoked against Shah as he was not a public servant. Desai said requisite permission for 2008 onwards had been shown to the court, making it clear that the permission had been duly granted by the Sebi top officials and that the due process of law had been followed. “The case of suppression is false and therefore is not a case of cheating,” argued Desai.

Meanwhile, the Bombay High Court adjourned the hearing on the issue of merger of NSEL with FTIL (now known as 63 moons) till November 24, based on the mutual agreement of both parties.