NSEL scam: Court extends custody of three accused

The metropolitan magistrate's court today remanded N K Proteins Ltd Managing Director Nilesh Patel, one of the defaulters of the beleaguered National Spot Exchange Ltd (NSEL), to police custody until October 28.
According to the police, NK Proteins was the first company to borrow Rs 350 crore from the NSEL and now it owes the spot exchange about Rs 850 crore to Rs 900 crore, which includes a principal amount of Rs 350 crore, interest, as well as other payable amount.
Patel was arrested yesterday in connection with the bourse's Rs 5,600 crore scam.
The court also remanded NSEL's former assistant vice president of business development Amit Mukherjee, as well as NSEL's former assistant vice president of warehousing Jay Bahukhandi, to judicial custody until October 31.

Earlier, officials of the Economic Offences Wing (EOW) had arrested three accused in the case.
NSEL's former MD and CEO Anjani Sinha was held on October 17, while former NSEL assistant vice president for business development Amit Mukherjee was nabbed on October 9 and the police arrested NSEL's former assistant vice president Jay Bahukhandi, who was also in-charge of the Know Your Customer (KYC) department, on October 10.

On September 30, the EOW filed an FIR in the case against NSEL's directors including Jignesh Shah and Joseph Massey, promoters and defaulters.
All of them were charged with cheating, forgery, breach of trust, criminal conspiracy and other offences under the Indian Penal Code.

On October 1, the CBI too registered a preliminary inquiry in the case.
NSEL has been facing problems settling Rs 5,600 crore of dues to 148 members and brokers, representing 13,000 investor-clients, after it suspended trading on July 31 after the government's direction.