Terming it as one of biggest scams in the country, the Mumbai Police registered an FIR on September 30 against NSEL promoters Jignesh Shah, Joseph Massey and other promoters, directors and defaulters for allegedly cheating investors to the tune of Rs 5600 crore. The accused were charged with forgery, breach of trust as well as criminal conspiracy as well, among others.
The spot commodity bourse, promoted by the Jignesh Shah-led Financial Technologies (FT), has been facing problems in settling Rs 5,600 crore dues of 148 member brokers, representing 13,000 investor clients, after it suspended trading on July 31 after government directions.
Setting recovery of assets and cash from the accused as one of its top priorities, the investigating authority has so far attached over 200 properties of defaulters, directors and senior officials and attached immovable assets of NSEL directors, including Shah and Joseph Massey besides freezing 325 bank accounts, which hold Rs 172.15 crore.
The investigating agency has pegged value of all assets seized in connection with the NSEL scam at more than Rs 4,000 crore. The assets would be liquidated to pay back the victims.
So far, the EOW has arrested five accused in the case namely Anjani Sinha, Amit Mukherjee and Jay Bahukhundi of the NSEL, besides borrowers like N K Proteins Managing Director Nilesh Patel, Lotus Refineries Chairman Arun Sharma, who is also a movie financier. All of them are in judicial custody and currently lodged in the Arthur Road Jail.
Earlier, City police cracked down on cash-rich IPL betting syndicate in May that sent shockwaves in the cricketing world.