Bombay HC allows CBI to impound Jignesh Shah’s passport

According to CBI, Jignesh Shah allegedly prepared fake warehouse receipts, letters and other documents, which caused wrongful loss to PEC. (Express Photo by Ganesh Sirshekar/File)

The Bombay High Court on Tuesday granted liberty to Central Bureau of Investigation (CBI) and Passport Authority “to initiate the proceedings for impounding the passport” of Jignesh Shah, a former MCX MD. Justice Prakash Deu Naik directed CBI to return the passport of Shah within three weeks and said, “respondents (CBI)/ Passport Authority will be at liberty to initiate the proceedings for impounding the passport” in accordance with of the Passport Act.

According to CBI, on February12, 2014, CBI filed a report against officials of Project and Equipment Corporation (PEC) of India Limited, National Spot Exchange Limited (NSEL), Financial Technology India Limited (FTIL) and many others in conspiracy of siphoning of its funds by floating accommodative and fraudulent paired contract for trading in agro commodities on the platform of NSEL without actually undertaking any genuine trade.

According to CBI, Shah allegedly prepared fake warehouse receipts, letters and other documents, which caused wrongful loss to PEC.

In an appeal filed before the high court, senior lawyer Amit Desai argued that the “special judge has committed a grave error in rejecting the application for return of passport and further issuing directions to the respondents to forward the passport to the passport authority, to adjudicate on impounding of passport” of Shah. CBI counsel Hiten Venegaonkar told court that Shah is likely to abscond in case the passport is handed over to him.