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The high court on Friday granted bail to Jignesh Shah, chairman and group chief executive officer of Financial Technologies, in the Rs 5,600-crore National Spot Exchange Ltd (NSEL) scam. Shah has spent 107 days in custody. Shah was granted bail on a cash surety of Rs 5 lakh. Besides, the court has asked Shah to provide a solvent surety of another Rs 5 lakh within two weeks of his release.
Shah is expected to be out of custody within a day or two, as soon as he furnishes the surety. He has also been asked to appear before the economic offences wing of Mumbai police every Monday and Thursday until further notice.
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Shah’s counsel Mahesh Jethmalani said, “After a very prolonged custody, Jignesh Shah was granted bail by Bombay High Court. There was no evidence of his knowledge about shortfall in stock found against him. Further, there was no possibility of tampering with any evidence of any nature that was ascribed to him. Granting of bail in a matter like this is a rule of criminal law and justice has been done.”
Shah was arrested on May 7 by the wing and a chargesheet was submitted on August 4. Shah had earlier applied for bail at a sessions court, but it was denied on grounds that he could tamper with evidence.
Dewang Neralla, wholetime director, FTIL, said, “With support from FTIL and other government agencies, NSEL is leaving no stone unturned in recovering the monies of the investors from the 24 defaulters. FTIL rests its faith in the Indian judicial system and firmly believes that justice will be done to all concerned.”
SAT asks FTIL to move Sebi with deadline extension plea
Meanwhile, the Securities Appellate Tribunal (SAT) has asked Financial Technologies India (FTIL) to move Sebi with its plea seeking extension of deadline for divesting its holdings in MCX-SX and three other exchanges. FTIL has filed an application before SAT seeking extension of time for complying with the Sebi order, dated March 19, declaring it not fit and proper to hold any stake in a stock exchange. The company had moved SAT against the order last month. The tribunal, however, had ruled in Sebi's favour and given FTIL time till August 9 to divest. “We permit the applicant to move Sebi seeking extension of time. If such application is made, Sebi would consider it on its merit and pass an appropriate order thereon,” SAT said in an order dated August 21.
