Countdown to Jignesh Shah's arrest: Timeline and evidence

May 08 2014, 09:19 IST
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Financial Technologies Group promoter Jignesh Shah was arrested by Mumbai Police in connection with the Rs 5,600 crore NSEL payments scam. (IE photo) Financial Technologies Group promoter Jignesh Shah was arrested by Mumbai Police in connection with the Rs 5,600 crore NSEL payments scam. (IE photo)
SummaryFinancial Technologies Group promoter Jignesh Shah was arrested in connection with Rs 5,600 cr NSEL scam.

The law finally caught up with Jignesh Shah, the promoter of Financial Technologies Group and the Multi Commodity Exchange (MCX) on Wednesday with the Mumbai police arresting him under the Maharashtra Protection of Interest of Depositors Act. Approximately 18,000 investors are understood to have lost money after a Rs 5,574-crore payments crisis broke out on the National Spot Exchange (NSEL) in late July last year. Here's a countdown to the arrest of Financial Technologies Group's Jignesh Shah.

July 12, 2013: NSEL told to stop all new contracts

July 31: NSEL puts off settlement by15 days

August 20: NSEL sacks CEO Anjani Sinha

October 1: EOW files FIR in NSEL case

October 5: FMC questions FTIL ‘fit and proper’ status

October 17: NSEL ex-CEO Anjani Sinha arrested

October 20: Shreekant Javalgekar quits MCX

October 31: Jignesh Shah resigns from MCX board

December 18: FMC deems Shah/FTIL not fit & proper

January 6, 2014: Police file NSEL charge sheet

March 13: CBI files case against NSEL

March 20: Sebi strips FTIL of ‘fit and proper’ status

THE EVIDENCE

While Jignesh Shah blamed the R5,600-cr NSEL scam on ex-CEO Anjani Sinha, Grant Thornton report found Shah was complicit.

l Shah at board meetings of March and August, 2010 where NSEL got credit facilities for NK Proteins to cover trading shortfall

* Shah at May board meeting when same thing done for IBMA

* Settlement fund used for NSEL’s business

* Back-to-back trades suggested para-banking — illegal for an exchange

* Key risk committees never set up. Manual reporting helped to alter transaction details

* Internal audit of 2011 by Mukesh P Shah given to NSEL board confirmed para-banking activity

* PwC found NSEL-type manual reporting on MCX, critical alerts disabled

* Paired-trades of NSEL type also found on MCX

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