EOW arrests NSEL V-P Mukherjee after Jignesh points finger at him
10 Oct 2013 10:29 PM GMT
A top official of the crippled National Spot Exchange (NSEL), which defaulted on its payments for the eighth time in a row on Tuesday, was arrested by the Economic Offence Wing (EOW) of Mumbai Police on Wednesday in connection with the bourse’s Rs 5,600-crore scam.
In the first arrest in the more than two-months old case, Amit Mukherjee, vice-president at NSEL’s business development department, was called for questioning and subsequently placed under arrest for his role in the scam, said additional police commissioner (EOW) Rajvardhan Sinha late in the evening.
The first arrest comes a day after the investigators ‘briefly’ recorded the statement of Jignesh Shah, chairman and managing director of Financial Technologies that promotes the beleaguered NSEL, along with other directors Joseph Massey, Shreekant Javalgekar and Dewang Neralla.
According to police, Shah had put the blame squarely on Mukherjee and former bourse MD & CEO Anjani Sinha for the fraud. Anjani was yet to show up before the investigators. Mukherjee had introduced new members, investors, clients and companies to NSEL, including those firms that defaulted in making payments, said another officer.
‘Mukherjee had also received kickbacks from various companies, including Mohan India, one of the largest borrowers from the exchange,’ the official added.
The investigators wanted to grill Mukherjee since 30 September, the day an FIR was registered in the case but he was evading cops.
‘We had also gone to his residence in Mira Road but he could not be traced. Today he appeared before us and we arrested him the case,’ the officer said. The FIR was filed by the EOW against Shah and Massey who is the managing director and CEO of MCX Stock Exchange, which is also promoted by FT, and other promoters, directors, officials and defaulters.
All of them are charged with cheating, forgery, breach of trust and criminal conspiracy, among others.
On 1 October, the CBI had registered a preliminary inquiry to look into all aspects of the scam. NSEL has been facing problems in settling Rs 5,600 crore dues of 148 members/brokers, representing 13,000 investor-clients, after it suspended trade on 31 July on government’s direction.
In the first arrest in the more than two-months old case, Amit Mukherjee, vice-president at NSEL’s business development department, was called for questioning and subsequently placed under arrest for his role in the scam, said additional police commissioner (EOW) Rajvardhan Sinha late in the evening.
The first arrest comes a day after the investigators ‘briefly’ recorded the statement of Jignesh Shah, chairman and managing director of Financial Technologies that promotes the beleaguered NSEL, along with other directors Joseph Massey, Shreekant Javalgekar and Dewang Neralla.
According to police, Shah had put the blame squarely on Mukherjee and former bourse MD & CEO Anjani Sinha for the fraud. Anjani was yet to show up before the investigators. Mukherjee had introduced new members, investors, clients and companies to NSEL, including those firms that defaulted in making payments, said another officer.
‘Mukherjee had also received kickbacks from various companies, including Mohan India, one of the largest borrowers from the exchange,’ the official added.
The investigators wanted to grill Mukherjee since 30 September, the day an FIR was registered in the case but he was evading cops.
‘We had also gone to his residence in Mira Road but he could not be traced. Today he appeared before us and we arrested him the case,’ the officer said. The FIR was filed by the EOW against Shah and Massey who is the managing director and CEO of MCX Stock Exchange, which is also promoted by FT, and other promoters, directors, officials and defaulters.
All of them are charged with cheating, forgery, breach of trust and criminal conspiracy, among others.
On 1 October, the CBI had registered a preliminary inquiry to look into all aspects of the scam. NSEL has been facing problems in settling Rs 5,600 crore dues of 148 members/brokers, representing 13,000 investor-clients, after it suspended trade on 31 July on government’s direction.
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