Police files FIRS against Jignesh Shah, directors of NSEL
MUMBAI: In one of the biggest cases in recent times, the economic offences wing (EOW) of the Mumbai crime branch on Monday registered a first information report (FIR) against Financial Technologies India Limited (FTIL), the board of directors of National Spot Exchange Limited (NSEL), including Jignesh Shah and 25 borrowing companies, in a ₹5,600-crore payment default case pertaining to 13,000 investors. Following the FIR, massive raids were conducted by the 63 teams of the EOW all over the country on 185 premises.
Himanshu Roy, joint commissioner of police (crime), Mumbai, said the FIR was registered after a month-long inquiry and prima facie an offence was established.
A complaint in this regard was made to the EOW by Pankaj Saraf of the NSEL investors’ forum, based on which a FIR was registered after the inquiry.
The case has been registered for misrepresentation of facts to investors, creating forged documents and warehouses, and creating falsified accounts among others.
The accused include FTIL, the board of directors of NSEL who include: Joseph Massey, Jignesh Shah, Anjali Sinha, Shantilala Guru, PD Pawar, Shrikant Javalgekar, R Devarajan, Amit Mukherjee and Jai Bahukhundi.
NSEL has not been able to meet its settlement commitments since the crisis broke a little over a month ago.
There are also allegations that stocks in warehouses didn’t match the volumes of commodities traded on the exchange.