Jignesh Shah's judicial custody extended for three days

CBI seeks change in public prosecutor which the court granted

A special CBI (Central Bureau of Investigation) court on Saturday extended three days of judicial custody for Jignesh Shah, the promoter of 63 Moons Technologies — formerly Financial Technologies (India) or FTIL —, in MCX-SX (now Metropolitan Stock Exchange of India or MSEI) license case.

The CBI has arrested Shah on September 21 for investigating issues pertaining to MSEI license. Shah has been booked under Sections 120 and 420 of the Prevention of Corruption Act, 1988.

Hearing the case, Additional Sessions Judge justice P S Tarare, City Civil and Sessions Court of Greater Mumbai, adjourned the case for three days on request of the CBI which wants to change the public prosecutor appearing for it in the court. Justice Tarare, however, warned that no further adjournment would be granted and ordered the CBI to come prepared on Tuesday.

 

Shah was arrested in a case registered against four Securities and Exchange Board of India (Sebi) officials for connivance with MCX-SX to fraudulently allow renewal of its licence to conduct trades in currency derivatives in 2009-2010.

The CBI also alleged MCX-SX had entered into a buyback arrangement with some financial institutions in violation of the Securities Contract Regulation Act, 1956, and had suppressed this fact while applying for an extension of its licence to operate in currency derivatives.

The arrest followed CBI searches at nine locations in Mumbai, including Shah’s residence and FTIL headquarters earlier. Shah was later taken into custody by the CBI for an interrogation.

The CBI also searched the residences of at least five current and former Sebi officials named in the first information report filed in August 2014. Besides, the CBI searched the premises of MSEI and the residences of Joseph Massey, former managing director and chief executive officer of MCX and MCX-SX. 

An informed source said that incriminating documents, including the transfer of shares by private companies, fixed deposits receipts, and purchase of assets recovered during the searches are being scrutinized.