Over two months after the surfacing of the Rs 5,600 crore settlement crisis at the National Spot Exchange Limited (NSEL),the Economic Offences Wing of the Mumbai Police on Thursday arrested Anjani Sinha,former managing director and CEO of the exchange.
The EOW also invoked the Maharashtra Protection of Interests of Depositors (Financial Establishments) Act,which empowers the agency to freeze the property of the accused,liquidate it and distribute the money to the investors.
Sinha,in his capacity as the MD,was closely associated with all the affairs of the NSEL,including accepting borrowers into the exchange and introducing new commodities. He had knowledge of and involvement in the wrongdoings that ultimately led to the debacle. Inquiries have also revealed that he has received kickbacks from defaulting companies. Amit Mukherjee,who was the first arrested accused in the case,has given a statement saying that Sinha was paid kickbacks more than once, said a senior EOW official.
According to EOW officials,Sinha presented himself before the agency on Thursday in response to the summons issued in the first week of October.
He was interrogated jointly by a team of 12 EOW officials and auditors who are helping the EOW with the probe. The questioning went on for around seven hours and Sinha was finally placed under arrest at 6:00 pm on Thursday.
Sinhas is the third arrest in the case,with more arrests expected,investigating officers said. A senior EOW official said the fact that Sinha had taken over a fortnight to respond to their summons would also go against him.
We had issued the summons in the first week of October,and he only responded on Monday,saying that he had been down with viral fever. He could have also communicated this to us within the five day period that we had given him to respond to the summons,which he did not, he said.