Mumbai: The Economic Offences Wing (EOW) of the Mumbai police on Friday filed a second charge sheet in the Rs 5,574 crore National Spot Exchange Ltd (NSEL) scam.
The 28,000-page supplementary charge sheet names 63 entities which include 36 companies and 27 individuals, the EOW said. The 36 companies include NSEL, its parent company, 63 Moons Technologies Ltd, fully owned subsidiary Indian Bullion Market Association (IBMA) and 22 members or defaulters who did not honour their payout obligations.
Some of the group companies of the defaulters who were recipients of the money have been named along with the three non-defaulting trading members or brokers.
These entities have been charged under the offences of cheating and criminal conspiracy amongst others. The case involves a settlement crisis and payment default by the spot exchange to the tune Rs 5,574 crore, which caused loss to 13,000 investors.
NSEL welcomed the development as the charge sheet names the defaulting counter-parties in the case.
“In fact, in August 2018, the exchange had filed writ petition No. 3416 of 2018 in Bombay High Court praying that the final charge sheet in the matter be filed at the earliest, in the interest of truth and justice. The next hearing in the matter is scheduled on January 7, 2019. We request the EOW-Mumbai to file the final charge sheet in the matter as early as possible so that trial can commence and the real culprits are brought to book,” said a spokesperson for NSEL in a statement.
This is the second chargesheet in the case. The first was filed in 2014 against seven entities. For the first time three brokerage firms, Anand Rathi Commodities Ltd, Geofin Comtrade Ltd and India Infoline Commodities Ltd, have been charged with mis-selling, mis-representing and cheating investors.
Officials of these three brokerage firms were arrested in 2015.
In an emailed statement a spokesperson for IIFL said, “IIFL Commodities Limited has not received any information about the reported filing of the charge sheet by the EOW-Mumbai in the NSEL matter. As and when it is received, we will consult our lawyers and take appropriate legal steps to defend our position before the court.”
Spokespersons for Geofin and Anand Rathi did not immediately offer comments.
That apart, the EOW is investigating the role of 300 brokerage firms in the case for violations of provisions of the Forward Contracts Regulation Act (FCRA) as they traded in paired contracts.