A SPECIAL court in Mumbai has granted bail to Jignesh Shah, arrested in the National Spot Exchange Limited scam stating that his custody was not required in the case, while directing him to pay a surety of Rs 2 lakh and depositing his passport.
The Enforcement Directorate (ED) had opposed his bail claiming his role in the multi-layered transactions between the subsidiaries of Financial Technologies India Limited (FTIL), of which he was the chairman and managing director. The ED has alleged that the transactions were used as a front to launder money.
Shah’s defence had claimed that the ED had arrested him under allegations that were already investigated by the Economic Offences Wing (EOW) in 2013. The EOW case alleges that the NSEL scam fraudulently took around Rs 5600 crores from around 13,000 investors.
Based on the EOW investigation, the ED had also registered a case against the key officials of NSEL and its promoter, FTIL, which holds a 99.99 per cent shares of NSEL. Shah had overall control of both FTIL and NSEL. He was granted bail by the Bombay High court in 2014 after he spent three months in judicial custody.
The ED had arrested Shah on July 12 under section 19 of Prevention of Money Laundering Act (PMLA). The agency had filed a 20,000-page charge sheet against NSEL and 67 others in a Mumbai court in March last year, explaining NSEL funds were laundered and “illegally ploughed into purchase of private properties”. The chargesheet detailed money trail amounting to Rs 3,721.22 crore. The Centre had recently directed the state to expedite the resolution of the case by auctioning assets worth Rs 6,116 crore attached so far. With PTI inputs