Tuesday, December 17, 2013

NSEL scam: ED seeks details from Mumbai police


Suspecting large-scale money laundering in NSEL’s Rs 5,600 crore payout scam, Enforcement Directorate (ED) has sought details of the case from Mumbai Police, indicating that the central agency would also initiate a probe into it soon, a police official said on Wednesday.

“The ED officials have asked us in writing to provide them a brief about the NSEL scam. We will soon send them the details,” an official of Economic Offence Wing (EOW) of Mumbai police said.

The reason is obvious that the central agency also wants to probe the allegations of money laundering on a large scale, the official added.

The ED is the designated 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 last Monday 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 NSEL, promoted by Shah-led Financial Technologies.

The next day the Central Bureau of Investigation had registered a preliminary enquiry 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.

Courtesy:
Mumbai, October 9, 2013
Updated: October 9, 2013 17:20 IST
http://www.thehindu.com/business/Industry/nsel-scam-ed-seeks-details-from-mumbai-police/article5217668.ece

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