Court sends Jignesh Shah to CBI custody till September 26

Claiming that he was being targeted by central agencies, Jignesh Shah opposed his arrest by CBI.

By: ENS Economic Bureau | Mumbai | Published:September 22, 2016 3:28 am
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A special CBI court on Wednesday remanded promoter of stock exchange — MCX- SX, Jignesh Shah in CBI’s custody till September 26 in connection with a case against him for allegedly suppressing facts to get an extension for the stock exchange from markets regulator Sebi.

Claiming that he was being targeted by central agencies, Jignesh Shah opposed his arrest by CBI. Shah, who was arrested by the CBI on Tuesday, was also arrested by the Enforcement Directorate in a separate case in July under charges of money laundering. The CBI has alleged that Shah misrepresented facts before Sebi at the time of getting MCX-SX, an extension for its operations, and booked him under charges of cheating, criminal conspiracy and under sections of Prevention of Corruption Act.

Shah appeared before the special Judge PS Tarare to oppose the CBI’s plea. “I have attended to notices sent by the CBI. I am neither the managing director nor the CEO of the MCX-SX but the non-executive chairman. There are 18 other members on the board and I am only one of them. After the Supreme Court ruled in our favour, Sebi too has given us all permissions and the exchange is currently operational. I am ready to comply fully to the court’s orders,” Shah told the court.

Earlier, arguing against his CBI custody, Shah’s counsel, AH Ponda argued that after a Bombay High Court order gave validity to MCX-SX’s buy back arrangement with Punjab National Bank, Infra Leasing and Financial Services Ltd, the SC too had confirmed the order.

“The case against MCX-SX is a non-starter since permission for its buy back arrangement which the Sebi had called illegal was given validity by the High Court and confirmed by the Supreme Court. ..,” Ponda said.

The CBI in its remand plea sought his custody claiming that it suspected Shah was hand in glove with Sebi officials, colluding in fraudulently allowing an extension to MCX-SX from Sebi to continue as a private stock exchange.