 "Delhi court refuses anticipatory bail to Jignesh Shah")
A district court in Delhi on Tuesday dismissed the anticipatory bail application filed by National Spot Exchange (NSEL) founder Jignesh Shah. Shah had sought anticipatory bail in the matter of a complaint filed by Delhi-based Classone Exports, which lost nearly Rs 23 crore in the NSEL payment crisis that broke out in July 2013. He might now move the high court for anticipatory bail, his lawyers said.
In an order passed on Tuesday, Additional Sessions Judge Dinesh Bhatt said no ground for anticipatory bail was made out and the application was accordingly dismissed.
Explaining the decision, Bhatt said in the order that custodial interrogation of Shah was required. "In view of the serious allegations of fraud and conspiracy levelled against the applicant, the transaction being undertaken by the applicant with no precaution... even after receiving show cause notice..."
Earlier, Shah's lawyers argued he was falsely implicated in the case. "The case including the present FIR (first information report) was being investigated by Mumbai Police where the applicant had been taken into custody and was released after 108 days by the High Court of Mumbai," it was argued.
Shah's application further said the actual beneficiaries were Mohan India, Brinda and Tavishi, the sugar traders on NSEL. "There was no purpose for custodial interrogation as the applicant has already submitted all documents."
It was further submitted that Shah was ready to cooperate with the investigation and there was no likelihood of him absconding. Shah had also applied for quashing of the Classone FIR as it was not maintainable, his application said.
However, the investigating officer at the Delhi Economic Offences Wing submitted that he was investigating the case and said there was no evidence to show the same matter was being investigated by the Mumbai Police. The complainant, Classone, also submitted that the Mumbai Police had not recorded its statement.
The court also took note of the fact that Classone had invested Rs 23 crore in the exchange's sugar contracts based on assurances of Shah and his men. "The allegations are to the effect that applicant and his men showed false warehouses to complainant alleging that the goods have been stored therein but on actual verification neither the goods were found nor warehouses were belonging to the persons represented therein," the court observed in its order.
It also considered the July 2012 show-cause notice issued by the Government of India questioning irregularities in the operations of NSEL, despite which it allegedly continued to lure people like the complainant.
An FTIL spokesperson said: "The FIR in Delhi is nothing but sheer harassment. Shah firmly believes in his innocence. However, as a law-abiding citizen, Shah has joined investigation on multiple occasions and has made detailed submissions. He has always cooperated and will continue to cooperate with all investigating agencies. Shah has full faith in the judiciary and firmly believes that justice will be done to him. He will decide future course of action as per legal advice."
In a separate matter, the Company Law Board (CLB) allowed the Central government and NSEL's parent Financial Technologies to move the Madras High Court to seek extension of time to complete the proceedings. The CLB is hearing the matter of supersession of FTIL's board by the government.
In an order passed on Tuesday, Additional Sessions Judge Dinesh Bhatt said no ground for anticipatory bail was made out and the application was accordingly dismissed.
Explaining the decision, Bhatt said in the order that custodial interrogation of Shah was required. "In view of the serious allegations of fraud and conspiracy levelled against the applicant, the transaction being undertaken by the applicant with no precaution... even after receiving show cause notice..."
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The order further said there was a requirement of "unearthing the alleged conspiracy, recovery of money, fake invoices, investigations regarding other aspects of the case of false representation and co-conspirators."
Earlier, Shah's lawyers argued he was falsely implicated in the case. "The case including the present FIR (first information report) was being investigated by Mumbai Police where the applicant had been taken into custody and was released after 108 days by the High Court of Mumbai," it was argued.
Shah's application further said the actual beneficiaries were Mohan India, Brinda and Tavishi, the sugar traders on NSEL. "There was no purpose for custodial interrogation as the applicant has already submitted all documents."
It was further submitted that Shah was ready to cooperate with the investigation and there was no likelihood of him absconding. Shah had also applied for quashing of the Classone FIR as it was not maintainable, his application said.
However, the investigating officer at the Delhi Economic Offences Wing submitted that he was investigating the case and said there was no evidence to show the same matter was being investigated by the Mumbai Police. The complainant, Classone, also submitted that the Mumbai Police had not recorded its statement.
The court also took note of the fact that Classone had invested Rs 23 crore in the exchange's sugar contracts based on assurances of Shah and his men. "The allegations are to the effect that applicant and his men showed false warehouses to complainant alleging that the goods have been stored therein but on actual verification neither the goods were found nor warehouses were belonging to the persons represented therein," the court observed in its order.
It also considered the July 2012 show-cause notice issued by the Government of India questioning irregularities in the operations of NSEL, despite which it allegedly continued to lure people like the complainant.
An FTIL spokesperson said: "The FIR in Delhi is nothing but sheer harassment. Shah firmly believes in his innocence. However, as a law-abiding citizen, Shah has joined investigation on multiple occasions and has made detailed submissions. He has always cooperated and will continue to cooperate with all investigating agencies. Shah has full faith in the judiciary and firmly believes that justice will be done to him. He will decide future course of action as per legal advice."
In a separate matter, the Company Law Board (CLB) allowed the Central government and NSEL's parent Financial Technologies to move the Madras High Court to seek extension of time to complete the proceedings. The CLB is hearing the matter of supersession of FTIL's board by the government.