NSEL fraud: ED seizes assets worth Rs 115 crore in Mumbai, Delhi and Rajasthan
According to the ED, investors were induced to trade on the platform of National Spot Exchange Limited and defrauded out of Rs 5,600 crore.
The ED has filed seven prosecution complaints (equivalent to chargesheet) against NSEL, various defaulters and broking entities in the case. (Source: File) The Enforcement Directorate’s Mumbai Zonal office provisionally attached immovable assets approximately worth Rs 115.86 crore on Monday in a case linked to the Rs 5,600-crore National Spot Exchange Limited (NSEL) investment fraud case. The total worth of properties attached in the money-laundering case is now Rs 3,433.06 crore.
The ED said in a statement on Wednesday that the attached assets include 15 immovable properties situated in Mumbai, Delhi and Rajasthan belonging to various defaulters of NSEL, Mohan India Group, Vimladevi Agrotech Ltd, Yathuri Associates, and Lotus Refineries.
According to the ED, the accused in the case hatched a criminal conspiracy to defraud the investors, induced them to trade on the platform of NSEL, created forged documents like bogus warehouse receipts, falsified the accounts, and thereby committed criminal breach of trust and defrauded the investors out of Rs 5,600 crore.
“It has been revealed that the genuine investors were defrauded of their investments by way of serious misappropriation, which is apparent from the fact that NSEL allowed trading of commodities by sellers, without ensuring that goods of appropriate quantity and quality were stored in the exchange-controlled warehouses, resulting in thousands of investors trading in non-existent goods,” the ED said in a statement.
The money collected from various investors were diverted by trading members (defaulters) of NSEL for other activities like investment in real estate, repayment of outstanding debts and other activities, the ED further said.
The ED has filed seven prosecution complaints (equivalent to chargesheet) against NSEL, various defaulters and broking entities in the case.
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