A Mumbai Sessions Court, on Thursday, remanded former director of National Spot Exchange Ltd. (NSEL) Jignesh Shah and ex-chief of the Multi Commodities Exchange of India Shreekant Javalgekar to seven days in police custody in connection with the Rs.5,600-crore payment scam. The two were arrested on Wednesday by the Economics Offences Wing of the Mumbai police, taking the total number of persons held in the case to 11. On September 30, one of the investors had filed an FIR against the directors and key management persons of NSEL for cheating, forgery, criminal breach of trust and conspiracy.
On Thursday, the police told the court that the two were not cooperating in the investigation and had blamed another arrested accused Anjani Sinha for the scam and claimed ignorance.
The prosecution alleged that the two had engaged in a criminal conspiracy to make NSEL a non-banking institution.
“Funds from NSEL were siphoned off to FTIL (Financial Technologies India Ltd.) to pump up its volumes. Shreekant who was the financial controller and controlled the finances of FTIL, NSEL, IBMA (Indian Bullion Markets Association) and the other FTIL subsidiaries, was fully in control of IBMA and NSEL for a very long time. IBMA received funds by issuing bogus warehouses receipts,” the prosecution told the court.
