January 6, 2014 8:44 PM

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NSEL scam: Mumbai police EOW files 9,800-page chargesheet

The Economic Offences Wing – EOW of the Mumbai Police today filed a 9,800- page chargesheet in the National Spot Exchange Ltd (NSEL) scam. The chargesheet has been filed against the five arrested accused in the Rs 5,600 crore. The Mumbai Police has invoked Maharashtra Protection of Interest of Depositors Act, which empowers police to attach immovable assets of the accused. So far, police have attached over 200 properties (of the accused and the defaulters), valued at total of Rs 4,500 crore.Speaking to reporters after filing the chargesheet in a Mumbai court, Joint Police Commissioner (Crime) Himanshu Roy said that Jignesh Shah who is the promoter and director of NSEL was fully involved in the scam and is an accused in the case. He said the voluminous charge sheet included the list of attached properties of the arrested and wanted accused, frozen bank account details, information of physical stock available in the warehouses and statements of 297 witnesses. He informed that the matter is still being probed and more charge sheets will follow. Roy said that the charge sheet focuses on the modus operandi of the crime, how management was hand-in-glove with the defaulters; how certain borrowing companies appointed dummy directors and details about manipulation of books by various companies.The spot commodity exchange, promoted by Shah-led Financial Technologies – FTIL has been facing problems in settling Rs 5,600 crore dues of 148 member brokers, representing 13,000 investor clients. A FIR was lodged on September 30 by EOW against directors Jignesh Shah, Joseph Massey and others charging them with cheating, forgery, breach of trust and criminal conspiracy, among other offences. EOW has so far arrested five persons in the case – Anjani Sinha, Amit Mukherjee and Jay Bahukhundi of the NSEL, and borrowers Nilesh Patel, managing director of N K Proteins, and Arun Sharma, chairman of Lotus Refineries and also a film financier.

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