Enforcement Directorate has arrested founder and former chairman of Financial Technologies (India) Ltd Jignesh Shah in the 5,600 crore rupees scam at the commodity spot exchange. He will be produced before a special court today for extension of remand.
A senior ED official said, the agency has allegedly unearthed fresh evidence of money laundering against Shah and a string of companies associated with him.
The National Spot Exchange Ltd (NSEL) plunged into a payment crisis after halting trading in commodities from August 1, 2013, on a government directive. The commodity spot exchange has been accused of collaborating with 25 companies on the forward trading market to trade fake stocks on the exchange on the basis of forged documents. According to the Economic Offences Wing of Mumbai Police, the NSEL has duped over 13,000 investors across the country, causing huge losses to the investors. The Mumbai police lodged an FIR in the case in September 2013.
This is the second time Shah has been arrested in connection with the NSEL fraud. He was arrested by the Economic Offences Wing of the Mumbai Police in May 2014 and granted bail by the Bombay high court three months later.