Mumbai: Authorities start distribution of Rs 30 crore to investors

“Another property of an accused borrower has been recently auctioned and the proceed from that auction will be soon available with the competent authority and would be disposed in the same manner,” added the official.

On September 30, 2013 an investor had filed an FIR against the directors and key functionaries of National Spot Exchange Limited for cheating, forgery, criminal breach of trust and conspiracy.

The FIR alleged that the accused hatched a criminal conspiracy to defraud the investors and misrepresented that they were investors and induced them to trade on the platform of National Spot Exchange Limited by creating forged documents like bogus warehouse receipts thereby defrauding the clients.

In May 2014, while arresting Shah the EOW had claimed that he had masterminded the entire scam and was involved in a criminal conspiracy with the other co-accused to turn NSEL into a non-banking institution. So far, 11 persons have been arrested in the case.

The police claim that Shah, FTIL head and National Spot Exchange Limited director, as well as member of its audit committee, approved all the borrowers from National Spot Exchange Limited. The accused conspired to turn NSEL into a non-banking institution, the police claimed.

While in January 2014, the first chargesheet was filed against the National Spot Exchange Limited CEO Anjani Sinha, two vice presidents — Amit Mukherjee and Jay Bahukhundi — and two borrowers of the beleaguered exchange — Nilesh Patel, managing director of NK Proteins and Arun Sharma, film financier and chairman of Lotus Refineries, chargesheet against Shah was filed in August of the same year.

Shah has been charged under various sections of the Indian Penal Code, including those for cheating, forgery, criminal misappropriation and criminal conspiracy along with certain sections of the MPID Act.