Two days after Mumbai Police attached his properties,Jignesh Shah,director of the beleaguered National Spot Exchange Ltd,today told investigators that he was making “relentless” efforts to recover money from defaulters.
“Shah showed up before me to brief about the efforts being made by him to recover the money from the defaulters. We did not summon him and he himself turned up before us today,” said Rajvardhan Sinha,Additional Police Commissioner with Economic Offences Wing of Mumbai police.
Later,Shah told reporters: “Law will take its own course and I am committed to recovering (of money).” He refused to comment on the attachment of his assets by the police.
Police sources said that Shah claimed that the crisis-hit spot exchange had also been “relentlessly” doing its best to get back the money it lent to borrowers-turned-defaulters.
Police on Tuesday attached properties of directors Shah,Joseph Massey (who is also a Director at the now defunct Spot Exchange),NSEL non-Executive Chairman Shankarlal Guru,and former MD of MCX Shreekant Javalgekar.
Shah’s bungalow in suburban Juhu,a plot in Pune,a row-house in Aarey Colony here,1.19 lakh shares of Financial Technologies (India) Ltd worth Rs 178.5 crore owned by him,Rs 51 lakh worth shares of another company,fixed deposits of Rs 11 crore and five demat accounts were attached.
So far,police have attached 206 properties (of the accused and the defaulters),valued at a total of Rs 2,985.90 crore.
The Economic Offences Wing of Mumbai Police has invoked Maharashtra Protection of Interest of Depositors Act,which empowers police to attach immovable assets of the accused.
The FIR lodged in September against Shah,Massey and others charges them with cheating,forgery,breach of trust and criminal conspiracy,among other offences.
The spot commodity bourse,promoted by Shah-led Financial Technologies (FTIL),has been facing problems in settling Rs 5,600 crore dues of 148 member brokers,representing 13,000 investor clients.
Spin-Cot Textiles admits liability of Rs 34.29 cr to NSEL
Admitting that it owes Rs 34.29 crore to the scam-hit National Spot Exchange Ltd (NSEL),Spin-Cot Textiles Ltd has given an undertaking to the Bombay High Court that it would deposit Rs 50 lakh every month in the court till the arbitration proceedings are over.
Spin-Cot Textiles is one of the defaulters of the Jignesh Shah-led NSEL which is facing problems in settling Rs 5,600 crore dues of some 13,000 investors.
The first installment would be paid on December 10 and the remaining installments on or before 10th of each succeeding month,Navin Choumal,lawyer of Spin-Cot Textiles Ltd,said last week.
NSEL filed a petition under section 9 of the Arbitration and Conciliation Act,seeking order to Spin-Cot Textiles to deposit Rs 38.25 crore in the court or furnish bank guarantee,and appoint a Court Receiver in respect of properties mentioned in the petition.
Last week,Justice R D Dhanuka,while disposing of the petition,directed both the parties to take appropriate steps for appointment of arbitrator.
If Spin-Cot Textiles makes three defaults in paying installments as stated,a Court Receiver of the Bombay High Court would be appointed,the Judge said.