The Enforcement Directorate (ED) on Friday made its first arrest in the Rs. 5,600 crore National Spot Exchange Ltd (NSEL) payment scam
Gagan Suri, owner of one of the trading companies and one of the borrowers of beleaguered company was arrested on the charges of money laundering.
The agency claims that NSEL defrauded its investors and induced them to trade on the platform of NSEL by creating forged documents like bogus warehouse receipts thereby defrauding the clients. The money was given to the borrowers as 'loan' from NSEL; loans which the company wasn't entitled to grant, sources said.
According to sources, funds to the tune of Rs. 360 crore were siphoned off. Mr. Suri has been arrested under Prevention of Money Laundering Act (PMLA).
"Mr.Suri has been arrested under PMLA and was produced in a local court.He has been remanded to ED's custody," Sameer Bajaj, Deputy Director, ED,Mumbai told The Hindu.
Other than ED, the Mumbai police is also investigating the case. In January this year, the Mumbai filed a 9,600 page charge sheet in the case registered by them.
The charge sheet was filed against the five accused arrested by the Economic Offences Wing (EOW), an elite agency of the Mumbai police probing the case.
Amongst those charge sheeted are the company’s CFO , Mr. Anjani Sinha, two vice presidents – Mr. Amit Mukherjee and Mr. Jay Bahukhundi and two borrowers of the beleaguered NSEL- Mr. Nilesh Patel, Managing Director, NK Proteins and Mr.Arun Sharma, film financer and chairman of Lotus Refineries. While NSEL founder Mr.Jignesh Shah has been shown as an accused but he has not been charge sheeted so far.
The accused were charge sheeted under various sections of the IPC and also under certain provisions of the Maharashtra Protection of Interest of Depositors (MPID) Act.
On 30th September, 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. The FIR stated that the accused hatched a criminal conspiracy to defraud the investors.