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Mumbai EOW files chargesheet in Rs 5,600 crore NSEL scam case

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Mumbai EOW files chargesheet in Rs 5,600 crore NSEL scam case

EOW had earlier filed a chargesheet against six individuals in 2014 and subsequently against NSEL founder, Jignesh Shah. Shah was arrested by EOW on May 7, 2014. Several other individuals working for Shah-run FTIL (Financial Technologies Ltd) were also accused in the case.

The Economic offences Wing (EOW) of Mumbai police on Thursday (December 27) filed a supplementary chargesheet in the Rs 5,600 crore NSEL (National Spot Exchange Ltd) scam. At least 63 entities 27 individuals and 36 companies have been named in the police chargesheet.

EOW had earlier filed a chargesheet against six individuals in 2014 and subsequently against NSEL founder, Jignesh Shah. Shah was arrested by EOW on May 7, 2014. Several other individuals working for Shah-run FTIL (Financial Technologies Ltd) were also accused in the case.

The trading platform founded by Shah reportedly faced a payment crisis, following which approximately 13,000 investors lost money. Mumbai EOW is primarily investigating this case along with several other central agencies.

Companies named as accused in the chargesheet include NSEL, 63 Moons Technologies Ltd, India Bullion Market association; trading firms like Anand Rathi Commodities Ltd, Geofin Comtrade Ltd and India Infoline Commodities Ltd, have also been named in the chargesheet.

Read: NSEL scam: HC stays Maha order freezing 63 Moons' bank accounts

Several other companies who defaulted on paying back investors have been named as accused in the chargesheet.

Charges of cheating, criminal conspiracy under IPC and several sections of the Maharashtra Protection of Investors and Depositors (MPID) act have been added against the accused.

The chargesheet includes a statement of 520 witnesses and details of 509 bank accounts. EOW had roped in two government-appointed forensic auditors and a digital forensic auditor to conduct a detailed probe and crack the 5-year-long scam. The present chargehsheet also includes 22 GB data.

Issuing a press release on the recent developments, NSEL said, The National Spot Exchange Limited (NSEL) compliments the Economic Offences Wing of Mumbai Police (EOW-Mumbai) for filing the charge sheet in the matter involving counterparty defaults at NSEL platform in August 2013.

Also Read: NSEL probe: ED seizes Rs 17 lakh cash, over 60 vehicles in raids

In fact, in August 2018, the Exchange has filed writ petition no. 3416 of 2018 in Honourable Bombay High Court praying that the final chargesheet in the matter be filed at the earliest, in the interest of truth and justice. The next hearing in the matter is scheduled for January 7, 2019.

NSEL has also requested EOW-Mumbai to file the final charge sheet in the matter as early as possible so that Trial can commence and the real culprits are brought to the book.