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NSEL Director Shah quizzed again; focus now on broking firms

Mumbai: Jignesh Shah, promoter of scam-hit National Spot Exchange Ltd (NSEL), was today grilled by police for several hours even as the ongoing probe showed some broking firms and their directors had linked up with
PTI January 08, 2014 23:21 IST
PTI
Mumbai: Jignesh Shah, promoter of scam-hit National Spot Exchange Ltd (NSEL), was today grilled by police for several hours even as the ongoing probe showed some broking firms and their directors had linked up with the bourse and indulged in unfair practice for monetary gains.  NSEL, where Shah is one of the Directors, is at the centre of a Rs 5,600-crore payment crisis which came to light in July last.

Mumbai Police's Economic Offences Wing (EOW) is probing the scam. Shah had been questioned earlier also.  “We had summoned Shah again and he appeared before us for questioning today. We sought certain clarifications on new facts which emerged during our probe,” said Rajvardhan Sinha, Additional Commissioner of Police (EOW).  

Meanwhile, EOW is preparing to summon commodity broking firms and their directors, who had dealt with NSEL and carried out transactions on behalf of their clients, for questioning in connection with the case.  “Certain directors of broking firms had carried out a large volume trading for their own benefits. They indulged in what is called ‘trade modification' which is not a correct practice,” said another EOW official.