NSEL case: ED seizes valuables in searches in five states

The Enforcement Directorate (ED) conducted searches in five states in connection with its investigations into the alleged money laundering in the multi-crore National Spot Exchange Limited (NSEL) case.

ED on Thursday stated that during searches in Mumbai, Ahmedabad, Delhi, Kadi, Chandigarh and Bengaluru, cash worth ₹17 lakh, 42 heavy commercial vehicles, 21 high-end cars and investment documents worth ₹350 crores were seized.

The total attachment in this case has reached to the extent of ₹2,706 crore, sources said.

The accused in the case hatched a criminal conspiracy to defraud investors, induced them to trade on the platform of NSEL, created forged documents like bogus warehouse receipts, falsified accounts and thereby committed criminal breach of trust against about 13,000 investors to the tune of ₹5,600 crore.

Following the uncertainty of returns and falling trade volumes, the investors began sending complaint applications to the Economic Offences Wing (EOW) in the middle of August 2013. A case was then registered in the alleged fraud on September 30, 2013, with the MRA Marg police station and the investigation was handed over to the EOW. Based on the EOW case, the ED registered a Prevention of Money Laundering Act (PMLA) case.

After fresh evidences surfaced during the probe, ED carried out searches to further collect corroborative evidences, said an ED official.

ED in March 2015 had also filed a 20,000-page charge sheet against NSEL and 67 others in a court alleging the NSEL funds were laundered and “illegally ploughed into purchase of private properties.”

(with inputs from agencies)