NEW DELHI: The Economic Offences Wing of Delhi Police has arrested the former managing director of National Spot Exchange Limited (NSEL) in a case of commodity trading fraud.
Anjani Sinha has allegedly introduced policies in violation of the instructions of the forward market commission and lured investors by assuring fixed returns. “He was nabbed from Mumbai on Sunday evening. He was produced in the Borivali court in Mumbai and has been granted transit remand. He is being brought to Delhi,” joint commissioner (EOW) O P Mishra said.
The case was registered on the complaints that the directors of a brokerage firm, Integrated Commodity Trades Pvt Ltd, located on Barakhamba Road had cheated complainants by inducement and misrepresentation regarding commodity trading on NSEL’s platform.
The complainants have alleged that they were induced to invest in the commodity market that was undertaken by the accused as a trading and clearing member of NSEL, presenting it to be safe and regulated by the government authorities. But fictitious stocks were allegedly traded on the exchange as a result of which the settlement of contracts was not done on the day of maturity, causing loss to the complainants.
According to the complainants, they had lost almost Rs 8 crore between July 12 and August 13 in 2013. “The accused caused wrongful loss of Rs 7.5 crore to three complainants and misappropriated the funds for its own use. NSEL has caused a gross total fraud of Rs 5,600 crore to 13,000 victims,” Mishra said.
A company spokesperson termed the NSEL crisis as an engineered one. “Though it was solvable, it was not solved, with a view to throw ‘63 moons’ out of the exchange business.” He added, “The probe agencies have traced the entire money trail of Rs 5,600 crore to the 22 defaulting entities and it’s established that not a single paisa has come to NSEL, 63 moons or its founder. Even Bombay High Court has observed that the entire money trail is with the 22 defaulting entities.”
Despite this, he claimed, all targeted actions have been concentrated against NSEL, 63 moons and its founder, “who are actually the biggest sufferers”.