NSEL scam: Brokerage officials held

Three senior officials of commodity brokerages were arrested on Tuesday in connection with the Rs. 5,600-crore National Spot Exchange scam.

City police’s Economic Offences Wing (EOW) arrested Anand Rathi Commodities Managing Director Amit Rathi, India InfoLine Commodities vice-president Chintan Modi and Kochi-based Geojit Comtrade’s whole time director C.P. Krishnan for their alleged involvement in the scam, EOW sources said.

The three commodity brokerages could not be reached for comments.

The NSEL scam had come to light after the government had on July 31, 2013, ordered the Jignesh Shah-promoted spot exchange to stop trading in some instruments which led to a payment crisis.

Following this, the exchange was forced to suspend trading and eventually down shutters, leaving over 11,000 investors in the lurch.

Police have been probing the role of brokers in the scam for sometime now.