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Every document related to NSEL was shared with FTIL and its top management: Anjani Sinha

Friday, 6 June 2014 - 6:35am IST | Agency: dna

After Bombay High Court granted him bail in connection with the Rs 5,574.34 crore payment crisis at the commodity bourse National Spot Exchange Ltd (NSEL), Anjani Sinha, former MD and CEO, spoke to Tarun Sharma. In an exclusive interview, first to the media since he got out on bail, Sinha clarified that the promoter Jignesh Shah was well aware of the NSEL fallout.

Do you agree with consumer affairs ministry claim that if they had not alerted NSEL in 2012 the scam would have been much bigger?
Consumer affairs ministry never warned us about NSEL matter. NSEL business did not touch Rs 22,000 crore at all. In 2012, NSEL business was around Rs 3,300 crore, which rose to Rs 5,500 crore. NSEL scam happened because all the contracts had to be called off within 10 days. If ministry had given us time to exit, then this would not have happened to such an extent.

Do you think Jignesh Shah and his team or FTIL management were aware of the NSEL fallout. Jignesh Shah has been saying that he is not involved in any day-to-day operations of NSEL.
Every document related to NSEL was shared with FTIL and its top management. We always shared daily turnover figures, outstanding amount with FTIL top management. So Jignesh Shah was well aware of the NSEL fallout. I have intimated it to the Economic Offences Wing (EOW) of Mumbai Police. I have faith in investigation and in law and order.

Did brokers or representatives of brokers visit warehouses as brokers claim that NSEL had not given them the permission to visit warehouse without approval from the exchange?
The ones who were part of NSEL were allowed to visit warehouses. In fact, brokers, investors and audit team must have visited the warehouses around 200 times in the last three years.

Did Jignesh Shah interact with borrowers at all?
Yes, Jignesh Shah interacted with borrowers several times. He met borrowers even in FTIL and NSEL offices. These instances are documented which I have already provided to EOW Mumbai Police. Off hand, I do not have names of borrowers who met Jignesh Shah.

What about NK Proteins, they had the highest exposure in NSEL? Did Jignesh Shah meet them?
Yes, Jignesh Shah met NK Proteins personally.

You are saying everybody should sit together and try to get money from borrowers. However, borrowers have a different say on this. They are claiming that they have taken long-term loans without collateral, so why are they made to pay now?
There is no document which says so. NSEL had given long-term loans to these borrowers. Exchange was providing a platform for buying and selling. Sellers who were in the contract had to deliver, according to the buyers' demand. Sellers had given post-dated cheques to NSEL. EOW and ED (Enforcement Directorate) are investigating the matter and I think these facts will come out very soon in front of us.

What was the process of sending mails, and we have learnt that the software server had crashed?
Internally, we are allowed to send mails to anyone, but for sending externally, the mails had to be routed through FTIL management and copy of the mail was kept with top management, and since the server got crashed I have not been able to give more evidence to investigation agencies.

Was FTIL planning to come out with IPO of NSEL?
Yes, FTIL management was planning an IPO for the commodity exchange as NSEL was making a significant contribution to FTIL's kitty.

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