Turf wars are set to erupt in the investigation of the Rs 5,600 crore NSEL ‘scam’, with the Economic Offences Wings of the Mumbai and Delhi police, both claiming jurisdiction over the
Jignesh Shah, the main accused — as director of NSEL and promoter of Financial Technologies (FTIL), which owns 99.99 per cent of the shares of NSEL has approached the Delhi High Court in a writ petition for quashing of an FIR filed by the Delhi EOW against him last year in the case. In his plea, he claimed that since the Mumbai EOW had already registered multiple FIRs in the case, and he had remained under arrest for over 100 days, the case filed by the Delhi Police should be quashed.
Shah has also claimed that there “ought not be another FIR filed for the same offence” if there was “already an FIR which involves a larger offence.”
In response to notices issued by the Delhi High court, the Mumbai EOW seems to have echoed Shah’s plea, claiming in its affidavit that “any investigation by the Delhi police in respect of the same offence or in respect of same properties which are already the subject matter of the offence being investigated by the EOW, Mumbai, may jeopardise the interests of the depositors.”
The Mumbai EOW in its affidavit has also stated that an amount of Rs 363.69 crore had already been disbursed to investors under orders of the Mumbai High Court.
Mumbai police have also claimed that since a case had been filed under Maharashtra protection of interests of Depositors Act (MPID), which is a “special act” providing for the redressal of grievances of any aggrieved person, there was no need for separate probe.
The Delhi Police on the other hand have claimed that complaints made in these two FIRs of Mumbai and EOW are “related to different transactions of occurrences. Both these cases are independent and distinct offences having different jurisdictions.
The Delhi police through APP Sanjay Lao has also said that Shah was required for custodial interrogation, and “cannot seek respite” by filing a plea “in the garb of larger conspiracy and the core issues being covered in the Mumbai FIR.”
The NSEL or the National Spot Exchange limited, has been accused of collaborating with 25 “fictitious’ companies on the forward trading market to trade fake stocks on the exchange on the basis of forged documents. According to the Mumbai EOW, the NSEL has duped over 13,000 investors across the country, causing huge losses to the investors.
The Mumbai police lodged an FIR in the case in September 2013. Shah was arrested by the Mumbai EoW on May 7 2014, and released on bail by the Mumbai High court in August.
The FIR by the Delhi Police EOW, was registered in August 2014, on a complaint by a Delhi- based sugar merchant.