HC grants bail to FTIL's Jignesh Shah in NSEL scam case

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The Bombay high court on Friday granted bail to Jignesh Shah, promoter of Financial Technologies (FTIL), in the Rs 5,600 crore NSEL scam for Rs 5 lakh surety. The court asked Shah to produce solvent surety of the same amount within two weeks.

He will have to present himself before the investigating agency, the economic offences wing of the Mumbai police, twice a week. EOW had arrested Shah on May 7 in connection with the payment settlement crisis in NSEL, in which over 13,000 investors lost money. He has been charged with criminal misappropriation, forgery, criminal conspiracy, cheating and intimidation.

Shah’s lawyers argued before the court that the FTIL promoter was not involved in the day-to-day functioning of the exchange and was unaware of the crisis. They put the blame on some NSEL employees and brokers.

They said Shah was only a non-executive director of NSEL, which was part of his Financial Technologies Group, and, hence, was not involved in its routine operations.

Shah’s lawyer Mahesh Jethmalani in a statement said, “After a very prolonged custody, Shah was granted bail by the court. There was no evidence of his knowledge about shortfall in stock found against him. Further, there was no possibility of tampering with any evidence of any nature as ascribed to him.”

“Granting of bail in a matter like this is a rule of criminal law, and justice has been done,” he said.

The court for Maharashtra prevention of investors deposits Act had in June dismissed Shah’s bail plea on grounds that the probe was still under way and the accused was likely to tamper with evidence or influence witnesses in the case. He then moved the high court.

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