3 held for allegedly running futures trading betting racket

The Delhi Police Crime Branch on Tuesday arrested three persons allegedly involved in a Multi Commodities Exchange (MCX) betting racket in Central Delhi and recovered Rs 4.7 lakh,a laptop and a television set.

Written by Express News Service | New Delhi | Published: June 27, 2013 1:11 am

The Delhi Police Crime Branch on Tuesday arrested three persons allegedly involved in a Multi Commodities Exchange (MCX) betting racket in Central Delhi and recovered Rs 4.7 lakh,a laptop and a television set.

Additional Commissioner of Police (Crime) Ravindra Yadav said that the special unit of Crime Branch received a tip-off about the MCX racket being run in Kucha Mahajani,Chandni Chowk. A trap was laid and a decoy customer was sent to shop number 201 to place a bet on gold rates. On a signal from the decoy customer,the police conducted a raid in the area and arrested three people from the premises. The accused have been identified as Krishan Aggarwal,Vishal and Manish Jain.

During questioning,it was found that the MCX betting racket was being run by the accused for the last two years. Yadav said,“There are certain rules laid down by the government which govern trading in MCX. A client who opts for trading in MCX is supposed to pay a certain amount of commission (white money) to the concerned department. Charges of Rs 250 per crore as transaction is paid to the MCX and Rs 100 per crore is paid to the state government as stamp charges by the member whereas,member charges Rs 1,500 to 2,000 per crore from the client.”

He further explained,“An ID and a password is then given to the member for online trading by the concerned department. The online traing in MCX is carried out through specific bank accounts and there is little possibility to circulate black money in this channel. A close watch is being kept by various agencies over the trading done by members.”

In this case,the accused were not following the authorised procedure of trading,thus causing a loss to the Income Tax department. The accused were running a racket in which the gambler would place the bet on rates of gold,silver and other commodities over the telephone as well as in cash on the online rates. The online rates of MCX were broadcast by the local TV network to the accused persons. “The cable operator was broadcasting the video of online rates running on his computer through cable to all shopkeepers in Kucha Mahajani and this way about 2,000 shopkeepers placed bets and about 20-25 persons were involved in running the racket. Bets of Rs 20 to 30 crores were placed daily by the gamblers,” he said.

Multi Commodity Exchange of India Ltd (MCX) is a commodity exchange. It offers futures trading in bullion,ferrous and non-ferrous metals,energy,and a number of agricultural commodities (mentha oil,cardamom,potatoes,palm oil and others). It is regulated by the Forward Markets Commission.

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