 "Jignesh Shah appears before EoW ahead of HC hearing")
National Spot Exchange (NSEL) founder Jignesh Shah appeared before the Economic Offences Wing (EoW) of the Delhi Police on Wednesday.
Shah was seen in the capital's Mandir Marg police station in the afternoon around the time the capital's media was busy with the JNU case in Patiala House Courts.
The Mumbai-based Shah's Delhi visit came a day ahead of the Delhi High Court hearing anticipatory bail petitions of Shah and Jagmohan Garg, the promoter of Mohan India, one of the largest traders on NSEL.
Garg's companies, which dealt in sugar contracts of NSEL, were among the largest defaulters in the Rs 5,600 crore payment crisis. The duo is accused of allegedly conniving to dupe Delhi-based Class One Exports, which has lost about Rs 23 crore. When contacted Garg of Mohan India said, "We are not absconding. We have already given enough property as collateral. But, these are stuck in various proceedings before agencies like IT and ED. These should be used to pay dues of NSEL investors. Even, if there is any shortfall, we are prepared to make it good."
In September last year, the Tiz Hazari magistrate had refused anticipatory bail to Shah and Garg in separate orders. At the time of rejection of anticipatory bail in September, FTIL had 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 the 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."
After this, Shah and Garg had moved the Delhi High Court separately. The applications have been since been clubbed and heard as a single matter. In an affidavit, the Delhi Police explained how the complainant was allegedly duped by executives of NSEL and Mohan India.
"The complaint disclosed that the complainant bought 66,900 quintals of sugar between 25-06-2013 and 11-07-2013 from sellers M/s Mohan India and Brinda Commodity through NSEL. And, NSEL confirmed that the sugar was depsited in their godowns."
Based on this Class One had made a payment of Rs 22.60 crore through cheque to NSEL through Indian Bullion Markets Association (IBMA), a sister concern. "It is also stated that M/S NSEL provided a receipt of ownership of goods …stating the goods are kept in godowns in Khera Kalan, near Delhi."
But, the police affidavit added that during investigation it was revealed that no actual transactions of sugar took place as was represented. It was also found that the six godowns, which had been taken on rent by Mohan India in Khera Kalan in the Narela area had a capacity of 10,000-12,000 tonnes of sugar collectively, whereas NSEL was claiming stock of 327,790 tonnes.
The affidavit added that "from the investigations conducted so far there is sufficient evidence to prove that the companies NSEL, IBMA, Mohan India, Brinda Commodities and its directors and other officials under a criminal conspiracy cheated the complainant as well as other members/clients and for the purpose fake documents/valuable securities were produced and used."
The Delhi Police has sought custodial interrogation saying the petitioners have not revealed the money trail during the investigation. It submitted a 22-point table listing out differences between the case pursued by the EOW of the Mumbai Police and the Delhi complaint.
In January, when the matter was adjourned by the Delhi High Court, Shah's lawyers had submitted a 2,000-page submission detailing the various issues relating to the NSEL matter. The judge, who said the court did not have time for such lengthy submissions, had asked them to explain in two pages.
Shah was seen in the capital's Mandir Marg police station in the afternoon around the time the capital's media was busy with the JNU case in Patiala House Courts.
The Mumbai-based Shah's Delhi visit came a day ahead of the Delhi High Court hearing anticipatory bail petitions of Shah and Jagmohan Garg, the promoter of Mohan India, one of the largest traders on NSEL.
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In response to an email seeking comments, an FTIL spokesperson said, "This is a very old case and the hearing has been going on for one year. You have done similar stories on this particular case every time that a hearing comes up, and we have replied on this in the past also. As per earlier replies given to you, we are completely cooperating with the investigating agency. But every time this case come up for hearing, there is nothing new to add in this ongoing matter."
Garg's companies, which dealt in sugar contracts of NSEL, were among the largest defaulters in the Rs 5,600 crore payment crisis. The duo is accused of allegedly conniving to dupe Delhi-based Class One Exports, which has lost about Rs 23 crore. When contacted Garg of Mohan India said, "We are not absconding. We have already given enough property as collateral. But, these are stuck in various proceedings before agencies like IT and ED. These should be used to pay dues of NSEL investors. Even, if there is any shortfall, we are prepared to make it good."
In September last year, the Tiz Hazari magistrate had refused anticipatory bail to Shah and Garg in separate orders. At the time of rejection of anticipatory bail in September, FTIL had 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 the 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."
After this, Shah and Garg had moved the Delhi High Court separately. The applications have been since been clubbed and heard as a single matter. In an affidavit, the Delhi Police explained how the complainant was allegedly duped by executives of NSEL and Mohan India.
"The complaint disclosed that the complainant bought 66,900 quintals of sugar between 25-06-2013 and 11-07-2013 from sellers M/s Mohan India and Brinda Commodity through NSEL. And, NSEL confirmed that the sugar was depsited in their godowns."
Based on this Class One had made a payment of Rs 22.60 crore through cheque to NSEL through Indian Bullion Markets Association (IBMA), a sister concern. "It is also stated that M/S NSEL provided a receipt of ownership of goods …stating the goods are kept in godowns in Khera Kalan, near Delhi."
But, the police affidavit added that during investigation it was revealed that no actual transactions of sugar took place as was represented. It was also found that the six godowns, which had been taken on rent by Mohan India in Khera Kalan in the Narela area had a capacity of 10,000-12,000 tonnes of sugar collectively, whereas NSEL was claiming stock of 327,790 tonnes.
The affidavit added that "from the investigations conducted so far there is sufficient evidence to prove that the companies NSEL, IBMA, Mohan India, Brinda Commodities and its directors and other officials under a criminal conspiracy cheated the complainant as well as other members/clients and for the purpose fake documents/valuable securities were produced and used."
The Delhi Police has sought custodial interrogation saying the petitioners have not revealed the money trail during the investigation. It submitted a 22-point table listing out differences between the case pursued by the EOW of the Mumbai Police and the Delhi complaint.
In January, when the matter was adjourned by the Delhi High Court, Shah's lawyers had submitted a 2,000-page submission detailing the various issues relating to the NSEL matter. The judge, who said the court did not have time for such lengthy submissions, had asked them to explain in two pages.