Mumbai Police SIT to conduct preliminary probe against NSEL
Mumbai: Mumbai police has formed a Special Investigation Team (SIT) to conduct a preliminary inquiry into Rs 5,600 crore National Spot Exchange Limited (NSEL) payment default crisis after some investors lodged a complaint against the exchange and its office bearers.
"A special team, headed by deputy commissioner of police, has been formed to look into complaints against the NSEL," Joint Police Commissioner Himanshu Roy said Monday but refused to divulge details regarding the progress of preliminary inquiry.
NSEL, promoted by Jignesh Shah-led Financial Technologies (India) Ltd, is facing the problem of settling Rs 5,600 crore dues of 148 members/brokers, representing thousands of investor-clients, after it suspended trade on July 31 on the government's direction.
Shah is also likely to be summoned by investigators soon, said another police officer.
The SIT is being headed by a DCP and comprises an assistant police commissioner and five police inspectors.
Meanwhile, NSEL has garnered only Rs 10.32 crore so far against Rs 174.72 crore payable to investors tomorrow, raising the possibility of third straight default.
The bourse had defaulted in last two pay-outs as it could garner only Rs 92.73 crore in the first pay-out and Rs 12.05 crore in the second pay-out out of the scheduled Rs 174.72 crore each.
Former BJP MP and president of Investors' Grievances Forum, Kirit Somaiya recently filed a PIL in the Bombay High Court stating that NSEL forged/manipulated documents regarding stocks and liquidity and allowed some of the companies to pledge the same stock with more than one financial institutions.
Somaiya also alleged that government officials and politicians connived with NSEL to cheat investors.
There are 24 buyers/members which have to pay Rs 5,600 crore to the spot exchange for settling dues of the investors.