The Economic Offences Wing (EOW) of the Mumbai Police Crime Branch on Tuesday arrested directors of three leading brokering houses in connection with the alleged National Spot Exchange (NSEL) scam. The fresh arrests take the total number of arrests in the Rs 5,600-crore case to 24.
According to EOW officials, Amit Rathi, director of Anand Rathi Commodities, Chintan Modi, director of India Infoline Commodities, and CP Krishnan, director of Geojit Comtrade, were placed under arrest on Tuesday.
“Around 139 brokers have traded through the NSEL. We started our investigations into the role of brokers in the case with the brokering houses with maximum exposure in the NSEL. during investigations, replies of these three accused were found to be evasive and custodial interrogation was felt to be necessary. We arrested them on Tuesday. They have been charged with cheating, forgery, criminal conspiracy and criminal misappropriation under the Indian Penal Code,” said additional commissioner of police Ravardhan Sinha, EOW.
As per investigations so far, Anand Rathi Commodities had a trading volume of Rs 19,130.2 crore in NSEL, while India Infoline Commodities and Geojit Comtrade indulged in trade worth Rs 9,183.48 crore and 5,526.66 crore, respectively, said officials.
Explaining the role of the brokering houses, Sinha said, “The basic findings of our investigations are that the brokering houses pertained to false assurances to investors, with misleading statements, leading to enticement to investment through the NSEL.”