OVER A month after he was arrested by the CBI, Jignesh Shah, promoter of commodities stock exchange, MCX-SX, was granted bail by a special court on Wednesday. Shah had applied for bail for the second time after his first plea filed under section 439 of the Criminal Procedure Code was rejected last month.
Shah was arrested by the CBI on charges of misrepresenting facts before market regulator Sebi while seeking extension for MCX-SX stock exchange. In his second bail plea Shah contended that his arrest by the CBI had been two years after the registration of an FIR. He had also submitted that though the CBI had alleged suppression of facts with regard to buy-back arrangements while seeking an extension before Sebi, the regulator was aware of this.
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Special Judge PS Tarare granted bail to Shah on a bond of Rs 1 lakh. Shah will also have to appear before the CBI for the next three months, twice a week till the chargesheet is filed in the case.
Shah had been earlier arrested by the Enforcement Directorate in July on charges of alleged money laundering in transactions of his companies. The special Prevention of Money Laundering Act court had granted Shah bail in August on a surety of Rs 2lakh, a month after which the CBI arrested him. Shah had alleged being ‘targeted’ by central agencies after his arrest by the CBI. In 2013, Shah had also faced arrest in a case investigated by the Economic Offences Wing of Mumbai police on allegations of duping investors, and had spent over a year in prison.