NSEL crisis: Police promise speedy liquidation of attached assets

A day after Mumbai police attached the properties of National Spot Exchange Ltd's director Jignesh Shah, about 50 investors of the spot exchange met the Mumbai Crime Branch chief. Reuters A day after Mumbai police attached the properties of National Spot Exchange Ltd's director Jignesh Shah, about 50 investors of the spot exchange met the Mumbai Crime Branch chief. Reuters

A day after Mumbai police attached the properties of National Spot Exchange Ltd's director Jignesh Shah, about 50 investors of the spot exchange met the Mumbai Crime Branch chief today, who assured that attached assets would be liquidated at the earliest and proceedings will be distributed on pro-rata basis.

The investors demanded stern action against board of directors and sought immediate arrest of former MD of spot commodity bourse MCX Shreekant Javalgekar, claiming that he was aware of all the happenings along with Shah.

Joint Police Commissioner (Crime Branch) Himanshu Roy said, "As per the law we will do everything to liquidate attached assets at the earliest and consider the option of distributing money on a pro-rata basis (to investors)."

Indicating that more arrests would take place in the case soon, Roy, who is supervising the probe, said, "We are making a watertight case."

Some of the investors told police that they had pressing need of money, Roy said, adding that, "We are doing our best within the legal purview to ensure that investors receive their money back soon."

Police yesterday attached properties of directors Shah, Joseph Massey -- also a Director at the now defunct spot Exchange, NSEL non-Executive Chairman Shankarlal Guru, and former MD of MCX Shreekant Javalgekar.

So far, police have attached 206 properties (of the accused and the defaulters), valued at total of Rs 2,985.90 crore.

The Economic Offences Wing of police has invoked Maharashtra Protection of Interest of Depositors Act, which empowers police to attach immovable assets of the accused.

An FIR lodged in September against Shah, Massey and others charges them with cheating, forgery, breach of trust and criminal conspiracy, among other offences.

The spot commodity bourse, promoted by Shah-led Financial Technologies (FTIL), has been facing problems in settling Rs 5,600 crore dues of 148 member brokers, representing 13,000 investor clients.
Courtesy:
PTI | Mumbai | Updated: Dec 04 2013, 21:42 IST
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