Almost after a year into the investigation of the Rs5,600-crore National Spot Exchange Limited (NSEL) scam, the Economic Offences Wing (EOW) is all set to close in on the brokers who allegedly encouraged the investors to invest in NSEL.
EOW, in the supplementary charge sheet filed against the main accused in the case Jignesh Shah, is said to have made references about the role played by the brokers in the scam.
According to EOW, there are around five to six big brokers who played a role in scam, along with small brokers. EOW, in the charge sheet, are said to have told the court that the investors, in their statement to the investigating agency, have said the brokers assured them of higher returns from NSEL for a higher brokerage.
An EOW officer said, "During our investigation, we figured out that a few brokers had lent money to the investors at 10-12% interest and the investors had invested the same in NSEL trading platform expecting 15-16% returns."
One important aspect of the investigation, as far as brokers are concerned, is whether they assured their clients about availability of stocks in the warehouses. In the charge sheet, EOW is said to have mentioned that one investor, in his statement, said a big broking firm assured them about the safety of their money and also about existence of stocks in warehouses. The investor also told the police that the brokers even executed bulk purchase orders without their consent. The police were also told that the brokers who had to collect delivery orders or warehouse receipts for their clients did not do it and that amounts to criminal breach of trust. The charge sheet also mentions that some of the brokers acted as clearing and forwarding agents and, hence, they should have been aware of the availability of goods in the warehouses.
On July 31, one of the leading brokers in the city was questioned and his statement was recorded. Additional commissioner of police (EOW) Rajvardhan Sinha said, "We are carrying out our investigation in the case and whoever is involved, even if they are brokers, we will be questioning them and taking appropriate action at the appropriate time."
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