The Central Bureau of Investigation (CBI) on Friday conducted searches at nine locations across the country in connection with an offence registered against officials of Multi Commodity Exchange of India (MCX), Financial Technologies India Ltd (now known as 63 Moons Technologies) and the erstwhile commodity market regulator the Forward Markets Commission (FMC).
The CBI officials said that the searches were conducted at office and residential spaces in Mumbai, Gwalior and Shimla and that several incriminating documents were seized in the searches.
“It has been observed that officials of the FMC had facilitated the MCX in getting the Nationwide Multi Commodity Exchange status, even though MCX was not fulfilling the stipulated criteria. Jignesh Shah, who was the MD of MCX at the time, illegally retained shares beyond the permissible 26 % till 2012 and derived illegal gratification to the tune of of ₹137 crore by selling 26,41,715 excess shares at a rate of ₹1,032 per share,” a CBI officer said.
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List of accused
Apart from Mr. Shah, the CBI’s first information report (FIR) has named former deputy managing director of MCX Joseph Massey along with FMC officials Bishnu Khatua, Kewal Ram, Anand Kumar Bhatt, Rajeev Agarwal, Vishal Nair, Bhimrao Raibhole and Ujwala Thathare as the accused.
Incidentally, the FMC was merged with the Securities and Exchange Board of India (SEBI) in September 2015.
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“The search by the CBI today was in connection with the matter of permission granted to MCX in 2003,” said a statement by 63 Moons Technologies while adding that it has already been forced to exit MCX in 2014 and all documents related to the permission are with MCX.
“During the search at Mr Jignesh Shah's residence today morning, CBI did not find any single incriminating material and/or document. The agencies are being misled by vested interests and trying to divert the attention from the truth getting established and prejudice the minds of investigating agencies and ongoing judicial matters. However, we have full faith in the judiciary and continue to believe that ultimately truth shall prevail,” added the statement.