Jignesh charged, Sebi officials’ case pending

Tags: News
The economic offences wing (EOW) of Mumbai police has filed a chargesheet against Financial Technologies (FT-IL) promoter and managing director Jignesh Shah in the Rs 5,600 crore National Spot Exchange (NSEL) default case.

This is the third chargesheet filed by EOW in the NSEL case. It runs to 9,000 pages and lists 270 prosecution witnesses.

Meanwhile, a PTI report said the central bureau of investigation (CBI) is likely to take a decision by end of this week whether to convert the preliminary enquiry (PE) initiated against former Sebi chairman CB Bhave and former Sebi member K M Abraham should become a regular case for carrying out further probe, or close.

Bhave had slammed the CBI move, saying the agency was indulging in "pick and choose" while registering PEs against him and Abraham.

“It is very easy to say something against someone and make humiliating allegations and malign their reputations. And if they have not found any criminal act, will they apologise? If CBI has not found anything against me, then I want them to publicly apologise,” he had said.

Earlier Jignesh Shah was arrested on May 7 by EOW in NSEL payment default case and his counsel had been trying for bail but the court had rejected it.

EOW also said that it would soon file a chargesheet against another person, former MCX MD Shreekant Javalgekar. It was on January 6, 2014 that EOW filed its first charge­sheet against five persons in the NSEL matter.

Last Thursday, the Bombay high court had deferred the hearing of a bail plea by Jignesh Shah till August 5, as EOW was expected to file a chargesheet against Shah.

Responding to the latest chargesheet, FTIL has now blamed brokers and defaulting sellers as equally responsible for the default.

According to FTIL, brokers paired independent contracts with different settlement periods launched by NSEL and mis-sold them to buyers/investors promising them assured returns despite repeated circulars prohibiting them from promising any assured return on NSEL’s contracts.

According to FTIL, it was a case of employee fraud executed systematically by NSEL’s top management and Jignesh Shah being a non-executive director of NSEL had no role in it.

The first chargesheet filed in the Maharashtra protection of interest of depositors (MPID) court had named former NSEL MD & CEO Anjani Sinha, former head of finance Amit Mukherjee, former chief of warehouse operations Jay Bahukhandi, NK Proteins MD Nilesh Patel and Lotus Refineries CMD Arun Kumar Sharma. NK Proteins is the largest NSEL borrower, while Lotus Refineries is another borrower.

In the first chargesheet the names of Jignesh Shah, former MCX-SX MD Joseph Massey and former MCX MD Shreekant Javalgekar had appeared, but not as accused.

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