The Supreme Court on Monday refused to cancel Multi Commodity Exchange promoter Jignesh Shah’s bail even after an investor alleged that he was “initmidiating the witnessess” in the R5,600-crore commodities exchange scam.

A bench headed by justice PC Ghose while refusing to interfere with the bail granted by the Bombay High Court said that “whatever observations has been made (by the HC) at the time of grant of bail shall not stand in the way in dealing with the trial by the trial court”.

It also noted that no appeal has been filed by the Maharashtra government in this matter so far. The HC order contained certain severe observations against the people who lost money in the NSEL scam. The judge had observed that the victims be considered ‘bogus traders’ rather than ‘investors’.

The HC had on August 22 granted bail for R5-lakh surety to Shah, who was arrested on May 7, after noting that he “need no longer be detained in custody” as his further custody was not essential for investigation now. As per the HC order, Shah is supposed to report to investigating agency office twice a week, every Monday and Thursday until further notice.

Eight months after the NSEL payment crisis broke, Shah was arrested by the Economic Offences Wing of the Mumbai Police. The 47-year-old Shah has been charged with criminal misappropriation, forgery, criminal conspiracy and under the Maharashtra Protection of Investors of Depositors (in Financial Establishments) Act for “duping investors”.

To safeguard public interest, the government has now decided to merge NSEL with its holding group FTIL. Post merger, NSEL’s entire business, properties and liabilities, among others, will get transferred to FTIL. As on March 31, 2013, NSEL had a networth of R175.76 crore.

FTIL owns a 99.99% stake in NSEL. Shah and his family own 45.5% stake in FTIL which in turn now own a 5% stake in NSEL. NSEL investors through Pankaj R Saraf had moved the apex court seeking quashing of the HC order that granted bail to the promoter. Saraf’s complaint was instrumental in the filing of a case last year against Shah, the directors and defaulters at NSEL.

The complaint noted FTIL was a direct beneficiary of NSEL’s profits. The parent earned software charges of R33 crore from NSEL in 2013 and including this, NSEL accounted for an 81% of the consolidated profit of FTIL, the complaint alleged. It also referred to the findings of the Forward Markets Commission and the Sebi, which ruled FTIL was not “fit and proper” to run exchanges (a view the Bombay High court upheld on Monday).