July 13, 2016 2:19:30 am
The Enforcement Directorate (ED) on Tuesday arrested Jignesh Shah, director of the National Spot Exchange Ltd in connection with the Rs 5,600 crore scam at the commodity spot exchange.
According to a senior ED official, the agency has allegedly unearthed fresh evidence of money laundering against Shah and a string of companies associated with him.
“We have unearthed a number of sham transactions of Shah and companies associated with him. We had questioned Shah on these transactions but he did not co-operate with the probe. So the agency feels that his arrest is required for questioning,” the ED official told The Indian Express. The official, however, declined to divulge the total value of the alleged transactions.
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The ED had registered a money laundering case in the NSEL scam in 2013. Last year the agency prosecuted NSEL and 67 others under the Prevention of Money Laundering Act (PMLA).
Shah has now been arrested under PMLA.
He will be produced before a special court on Wednesday for extension of remand.
“We fail to understand why such a coercive step has been taken by the Enforcement Directorate when Mr Shah has been fully co-operating with the investigation and has been going every time he has been called, including today, especially when ED’s own complaint has failed to establish any money trail to either Mr. Shah or 63 moons. We have full faith in Indian judiciary and sincerely believe that truth will prevail,” said the official spokesperson of Shah and his companies.
The NSEL was plunged into a payment crisis after halting trading in commodities from August 1, 2013, on a government directive. The commodity spot exchange has been accused of collaborating with 25 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.
‘Fresh evidence unearthed’
The NSEL was plunged into a payment crisis after halting trading in commodities from August 1, 2013 on a government directive. The exchange has been accused of collaborating with 25 firms on the forward trading market to trade fake stocks on the exchange on the basis of forged documents.
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