 "EOW files first chargesheet in NSEL case")
The economic offences wing (EOW) of the Mumbai Police on Monday filed its first chargesheet against five in the Rs 5,600-crore National Spot Exchange Ltd (NSEL) scam case.
The 9,800-page chargesheet, filed in the Maharashtra Protection of Interest of Depositors (MPID) court, named former NSEL MD & CEO Anjani Sinha, former head of finance Amit Mukherjee, former chief of warehouse operations Jay Bahukhandi, N K Proteins MD Nilesh Patel and Lotus Refineries CMD Arun Kumar Sharma. N K Proteins is the largest NSEL borrower, while Lotus Refineries is another of the borrowers.
The names of NSEL promoter & Financial Technologies Chairman Jignesh Shah, former MCX-SX MD Joseph Massey and former MCX MD Shreekant Javalgekar have also been mentioned, but not as accused.
The chargesheet, filed within 90 days of rejection of bail plea, links the accused prima facie to the guilt. It indicates that all proofs submitted in defence go against the accused.
The EOW has charged the five arrested with economic offences and, if they are proved guilty, they could get up to 10 years in prison.
The chargesheet also gives the details of property attached and movable and immovable assets seized by the EOW and various agencies, including the Enforcement Directorate. It also lists documents recovered during investigations and the names of experts who have helped the EOW in this case.
So far, 209 witnesses have appeared before the wing in this case.
“The investigation is not yet over. We have sought further proceedings of investigation from the court under Section 173 (A) of CrPC. So, a subsequent chargesheet can also be filed shortly,” Roy added.
The chargesheet had also shed light on the modus operandi of the crime, how management was hand-in-glove with the defaulters, how certain borrowing companies appointed dummy directors and manipulation of books by various companies, Roy added.
The EOW is also sending a lookout notice against the accused named in the chargesheet.
In addition to the arrested accused and borrowers, the EOW is also investigating the roles played by brokers and auditors in the NSEL case. So, further action in terms of arrests and notices in the case cannot be ruled out.
The EOW has so far in this case frozen assets worth Rs 4,500 crore; liquidation of these is likely to begin shortly. The EOW claimed the aggrieved investors would get full justice before next Diwali.
Meanwhile, EOW officials said the two cheques (worth Rs 50 crore) given by Mohan India, one of the largest NSEL borrowers, had bounced. Legal proceedings against the company might begin very soon, they added.
The 9,800-page chargesheet, filed in the Maharashtra Protection of Interest of Depositors (MPID) court, named former NSEL MD & CEO Anjani Sinha, former head of finance Amit Mukherjee, former chief of warehouse operations Jay Bahukhandi, N K Proteins MD Nilesh Patel and Lotus Refineries CMD Arun Kumar Sharma. N K Proteins is the largest NSEL borrower, while Lotus Refineries is another of the borrowers.
The names of NSEL promoter & Financial Technologies Chairman Jignesh Shah, former MCX-SX MD Joseph Massey and former MCX MD Shreekant Javalgekar have also been mentioned, but not as accused.
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“While Sinha has been the mastermind, Mukherjee and Bahukhandi have received kickbacks from borrowers,” said Himanshu Roy, joint commissioner of police (crime), Mumbai Police. Asked about the possibility of Shah’s arrest, Roy said: “It is a matter of strategy. We have not given him a clean chit. He is involved in this case up to his ears.”
The chargesheet, filed within 90 days of rejection of bail plea, links the accused prima facie to the guilt. It indicates that all proofs submitted in defence go against the accused.
The EOW has charged the five arrested with economic offences and, if they are proved guilty, they could get up to 10 years in prison.
The chargesheet also gives the details of property attached and movable and immovable assets seized by the EOW and various agencies, including the Enforcement Directorate. It also lists documents recovered during investigations and the names of experts who have helped the EOW in this case.
So far, 209 witnesses have appeared before the wing in this case.
“The investigation is not yet over. We have sought further proceedings of investigation from the court under Section 173 (A) of CrPC. So, a subsequent chargesheet can also be filed shortly,” Roy added.
The chargesheet had also shed light on the modus operandi of the crime, how management was hand-in-glove with the defaulters, how certain borrowing companies appointed dummy directors and manipulation of books by various companies, Roy added.
The EOW is also sending a lookout notice against the accused named in the chargesheet.
In addition to the arrested accused and borrowers, the EOW is also investigating the roles played by brokers and auditors in the NSEL case. So, further action in terms of arrests and notices in the case cannot be ruled out.
The EOW has so far in this case frozen assets worth Rs 4,500 crore; liquidation of these is likely to begin shortly. The EOW claimed the aggrieved investors would get full justice before next Diwali.
Meanwhile, EOW officials said the two cheques (worth Rs 50 crore) given by Mohan India, one of the largest NSEL borrowers, had bounced. Legal proceedings against the company might begin very soon, they added.