In a fresh development in NSEL's Rs 5,600 crore scam, the Enforcement Directorate (ED) today registered a preliminary inquiry into the payment crisis, suspecting large-scale money laundering in the beleaguered spot exchange, a senior official said.
"We have registered a preliminary inquiry into the NSEL scam as we strongly suspect money laundering," the official said.
The ED is the designate central agency to probe economic offences, such as money laundering and foreign exchange violation cases under the Prevention of Money Laundering Act (PMLA), 2002.
A FIR was filed on September 30 by EOW against Jignesh Shah, Chairman and Managing Director of Financial Technologies (FT), and Joseph Massey, Managing Director and CEO of MCX Stock Exchange, which is promoted by FT, and other promoters, directors and defaulters.
All of them were charged with cheating, forgery, breach of trust and criminal conspiracy, among others, in connection with the payment crisis at the National Spot Exchange (NSEL), promoted by Shah-led Financial Technologies.
The next day the Central Bureau of Investigation (CBI) had registered a preliminary inquiry to look into all aspects of the scam comprehensively.
NSEL has been facing problems in settling Rs 5,600 crore dues of 148 members/brokers, representing 13,000 investor-clients, after it suspended trade on July 31 on government's direction.
Last week, Mumbai police had arrested two persons in connection with the scam.
On October 9, police arrested Amit Mukherjee, assistant vice-president of the exchange and next day arrested Jay Bahukhundi, a former assistant vice-president and in-charge of know your customer (KYC) department that is tasked with verification of borrowing companies and investors etc at NSEL.
