NSEL, an employee fraud, could have been resolved in 6 weeks: Jignesh Shah
New Delhi, September 3 () More than six years after his former NSEL spot exchange was involved in a supposed scam of Rs 5.6 billion rupees, businessman Jignesh Shah said it was an employee fraud done in collusion with some delinquent brokers and could have been resolved in six weeks had it not been for a political conspiracy plotted at that time to help its commercial rivals.
Shah, who eventually had to abandon all exchanges and related businesses established by him, including the flagship Multi-Commodity Exchange (MCX), said it is still possible to resolve the case within 4-6 months by following the correct path to recover the Total amount of Rs 5.6 billion rupees from delinquent brokers and all genuine claimants can get their full fees.
In an exclusive interview, Shah said he has hopes for the resolution and also for the punishment of all those who were part of the fraud, since he feels that there is a favorable political environment in the country under the strong leadership of Prime Minister Narendra Modi.
He said that his main focus in the last six years, while fighting legal cases and attacks of vested interests, has been the process of recovery and reimbursement of fees to all genuine claimants.
Shah said that the recovery group at NSEL has managed to establish a full money trail of the total amount of Rs 5.6 billion rupees, assets worth Rs 8,000 rupees defaulters, Rs 3.3 billion millions of decrees have been attached and arbitration awards and the same for the balance was underway.
If we get the cooperation of the agencies and the government, in the next 3-4 months, we can obtain complete decrees for the 17 defaulters for the total amount of Rs 5.6 billion rupees, together with arbitration awards and precautionary measures.
We have already requested the execution of these decrees in several courts and we have also filed a request in the Supreme Court to centralize the execution, he said.
The 52-year-old businessman, who became known as 'Exchange Man of India' for successfully launching 14 exchanges on six continents, including MCX in 2003, has been fighting a prolonged legal battle on multiple fronts since NSEL (National Spot Exchange Ltd) broke out in 2013.
Shah, who was jailed three times and then released between 2014 and 2016 (first by the Mumbai Police Economic Crimes Wing in May 2014 and then by the Enforcement Directorate and the CBI in 2016), said he has always had A great faith in the judiciary and its position is to be vindicated by court orders one after another, since no agency has found any trace of money for him or his group's signatures even for a single payment.
One of the last victories for him came at the end of last month when the Bombay High Court ruled that the NSEL was not a financial establishment and annulled the seizure of assets, including bank accounts and property, of 63 Moons Technologies, the parent company of Shah-led group that was previously known as Financial Technologies (FT).
Earlier this year, the Supreme Court overturned a government order to merge NSEL with 63 Moons, while the NCLT last year had dismissed a request from the Ministry of Corporate Affairs to replace the 63 Moons board under Section 397 of the Companies, which Act is rarely used.
Shah said he became a target because he challenged some really powerful people and their machines to make and launder money.
We were number one in the trade of raw materials, electricity, currencies, bonds and everything we were doing and we obtained the license for the stock exchange where the NSE had a domain, he said.
It was an employee fraud carried out in collusion with delinquent brokers. And in parallel to this, a political conspiracy was drawn up to benefit the National Stock Exchange, Shah said, accusing former Finance Minister P Chidambaram of playing a role in all actions against The FT group.
They wanted to eliminate the FT group from the exchange space, because we were the only competition for their pet exchange, he said, while urging the government to investigate the interest of the leader of Congress and those close to him in the NSE and in the controversial facility of shared use in that exchange.
63 Moons has filed a defamation suit in search of Rs 10,000 crore in damages against Chidambaram and two bureaucrats in the Bombay High Court, alleging that it faced continued selective actions and in bad faith following a crisis of breach of engineering payment at NSEL
Chidambaram faces a subpoena from the Bombay High Court regarding the libel claim and had requested a copy of the complaint and other relevant documents days before his arrest by CBI on August 21 in connection with an alleged corruption case that It involves INX Media.
Shah claimed that joint location technology can facilitate a super white-collar crime, since even a fraction of the second advantage of commercial terminals can generate billions of dollars in illegal profits.
The NSEL was the smallest exchange in the entire FT group. There was an employee fraud and we were the first to complain to the regulator against the 24 delinquents and also to the police, he said.
Shah said the defaulters had admitted and agreed to pay in front of the Forward Markets Commission (the former commodity regulator) in the presence of brokers, traders, the exchange and their promoter.
Everything went through bank transactions and, therefore, until the last payment, the money trail was fully established. And the government had given FMC absolute power for recovery and embargo, he said, while claiming that the orders of the Ministry of Finance at that time derailed the entire process while trying unsuccessfully to blame it completely.
It was as if you wanted to go from Mumbai to Delhi, the vehicle was pushed towards Kanyakumari. The purpose was to end Jignesh Shah, who was the president of the group of 14 exchanges on six continents and his business was withdrawn one after the other by the arm - writhing, he claimed. However, now I hope that the process will get on the right track and accelerate, since there is a strong and committed government in power that can act against all the criminals decisively, Shah said. BJ RAM BJ BJ