Joseph Massey, a former non-executive director of the National Spot Exchange Limited (NSEL) has been sent to police custody till February 5 in connection with the ₹5,600-crore payment default.
At least 13,000 investors have claimed losses in the payment crisis, caused by the physical absence of commodities against investments.
Mr. Massey, 57, was arrested by the Economic Offences Wing (EOW) of the Mumbai police on January 27 from Belapur and on January 20, was summoned by the EOW. On Monday, he was produced before a special Maharashtra Protection of Interest of Depositors Act court.
The special public prosecutor in the case sought police custody of 14 days and said Mr. Massey has confronted the former Chief Financial Officer of NSEL, Shashidhar Kotian, with some documents, which are under scrutiny.
Meanwhile, Mr. Kotian, who was arrested by the agency on January 17, has been sent to police custody till January 30.
Advocate Dinesh Tiwari appearing for Mr. Massey sought a shorter custody, which was granted till February 5.
On January 25, the court had rejected the anticipatory bail filed by Mr. Massey. It said he was the non-executive director of NSEL from May 2005 through October 2013 and was not involved in the day-to-day affairs of NSEL. It also said he has visited the office of EOW more than 50 times since July 2013.
