Mumbai/New Delhi, 1 October
The economic offences wing (EOW) of the Mumbai police today froze bank accounts of crisis-ridden National Spot Exchange Limited, which said the action prevents the exchange from making a scheduled payment of Rs 174.72 crore to investors.
“The EOW Mumbai police have, in accordance with legal procedures, frozen the bank accounts of NSEL, including the settlement bank accounts. In view of the same, NSEL is unable to make any pay-outs today,” the NSEL said in a statement.
The Forward Markets Commission, the commodity market regulator that’s overseeing the exchange’s settlement process, has been informed about the freezing of bank accounts, NSEL said. NSEL had in August submitted a plan to the FMC to settle about Rs 5,600 crore of dues to investors over a seven-month period ending in March.
“NSEL is taking legal advice to de-freeze the settlement bank accounts and investors and members will be notified in due course,” the statement added.
Yesterday, the Mumbai police registered an FIR against NSEL promoter Jignesh Shah and others in connection with the payment crisis at the crippled exchange and raided their offices, residences and warehouses across the country. Meanwhile, CBI has started an inquiry into alleged irregularities and duping of customers by the NSEL.
CBI today said that the economic offences wing of its Mumbai branch had received complaints from the investors who lost their money with the spot exchange.
The exchange has been facing problems in settling Rs 5,600 crore dues of 148 members and brokers, representing 13,000 investor-clients, after it suspended trade on 31 July on the government’s direction.
“We have registered a preliminary enquiry to look into all aspects comprehensively,” CBI spokesperson Kanchan Prasad said here today.
The EOW of CBI has also asked the promoters to present all the relevant documents regarding the functioning of the spot exchange.