The Enforcement Directorate (ED) has cast serious allegations in its chargesheet against commodity bourse NSEL and its erstwhile board of directors, including promoter-director Jignesh Shah, Joseph Massey, Shreekant Javalgekar, Bhagwat Pawar and chairman Shankarlal Guru for assisting the moneylaundering activities of the bourse’s defaulting members and its management, including former MD & CEO Anjani Sinha.
The chargesheet that runs into 206 pages accuses the NSEL board and the bourse’s defaulting members like PD Agro, NK Proteins, Mohan India, Lotus Refineries, of money laundering, which, under Section 4 of the Prevention of Money Laundering Act 2002, is punishable with rigorous imprisonment of up to seven years and penalty. Total number of accused is 68.
It alleges that Shah, promoter of FTIL, which holds 99.9% of NSEL’s equity, was “instrumental” in getting governmental exemption for NSEL trades from the rules of Forward Contracts Regulation Act, 1952. These trades which were at the heart of the Rs 5,600 crore scam allowed 24 defaulting members to raise Rs 5,600 crore from more than 13,000 investors under the garb of commodity trading between 2009 and 2013.
The original article can be found at economictimes.indiatimes.com