MUMBAI: A special court hearing a case in the 2013 spot exchange NSEL scam has booked Nirmal Jain, director of IIFL Commodities, India Infoline Finance, IIFL Commodities promoters Preeti Gupta and Nirmal Jain under IPC, MPID and FCRA, 1952. Issued process for offenses under. Rupkishore Bhutada, director of Anand Rathi Commodities, and Shiny George and Manish Gupta, directors of Geofin Comtrade, for their alleged role in the fiasco.
The court was hearing an application filed by Arvind Kumar Behl who had invested 22 lakh through India Infoline Commodities Limited (IICL) which acted as the trading cum clearing member of NSEL. The present order stems from the Mumbai Police’s Economic Offenses Wing (EOW) not being chargesheeted against the accused for their role in the scam.
“Despite their active participation in the case of several directors, promoters and brokers and sufficient documentary evidence against them, they were deliberately not chargesheeted by the investigating officer,” Justice AS Sayed said. “There is sheer negligence on the part of the investigating agency in not charge-sheeting them. The present case pertains to an economic offense of huge magnitude. 5,600 crore and many gullible investors like the applicant are still waiting for justice. However, such selectively biased investigation and final report raise serious questions on the integrity of the EOW, betraying the trust of the victims.”
The sections under which process is issued include criminal breach of trust by public servant, banker, merchant or agent, punishment for forgery and punishment for criminal conspiracy.
IPC stands for Indian Penal Code, MPID stands for Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act and Forward Contracts Regulation Act for FCRA.
The seven are among the accused in the MPID case, which was called by the Economic Offenses Wing (EOW) of the Mumbai Police in 2014 to probe the NSEL scam.
5600 crore scam came to light when it was found that the contracts being traded on the exchange were not backed by the underlying commodities. Brokers were accused of assuring investors of guaranteed returns, which is not acceptable.
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