NSEL money laundering case: ED files fresh chargesheet against 19 broking firms
ED investigation revealed that the broking firms allegedly entered into a criminal conspiracy with NSEL to allure investors.
The brokerage earned by the broking companies through unlawful means to the tune of Rs 34.74 crore was also attached under provisions of PMLA, 2002 and the same has been confirmed by the Adjudicating Authority, PMLA, New Delhi. (Credit: Pixabay) The Enforcement Directorate (ED) on Wednesday said that they filed a fresh chargesheet on January 28 against 19 broking entities and their directors before the Special PMLA court under the provisions of Prevention of Money Laundering Act (PMLA), 2002. According to the ED, the broking companies allegedly colluded with officials of National Spot Exchange Limited (NSEL) to allure investors to trade on NSEL platform.
The special court has taken cognizance of the chargesheet (prosecution complaint) equivalent to, on Monday, the agency said in a statement.
The ED initiated investigation on the basis of a First Information Report (FIR) registered in the matter under various sections of the Indian Penal Code.
Investigation revealed that after getting registered with NSEL, the broking companies misled their clients by providing false assurances about the exchange and promoting illegal pair trade contracts that were not allowed.
In collusion with broking companies, NSEL established a system that bypassed the collection of warehouse receipts or physical commodities for their clients, knowing they were facilitating trades in such a manner, the Central agency stated.
The broking companies allegedly entered into a criminal conspiracy with NSEL to allure the investors to trade onto NSEL platform in promise of hefty returns, thereby cheating the investors through a fraudulent scheme. The brokerage earned through these illegal means was further utilised in business operations resulting in layering and integration of proceeds of crime (POC) and projecting them as untainted funds, the ED has said.
During the course of investigation, properties totalling to the tune of Rs 3,288.76 crore have been attached by issuing 32 provisional attachment orders.
The brokerage earned by the broking companies through unlawful means to the tune of Rs 34.74 crore was also attached under provisions of PMLA, 2002 and the same has been confirmed by the Adjudicating Authority, PMLA, New Delhi.
Earlier, six prosecution complaints have been filed in the case against 94 accused people.
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