The seven borrowers, who were arrested on Monday by the Economic Offence Wing (EOW) of Mumbai Police in the multi-crore National Spot Exchange Limited (NSEL) scam, were produced before the MPID court on Tuesday. The court remanded six of the accused in police custody, while one was sent to judicial custody. The accused face charges of cheating, forgery, criminal breach of trust and conspiracy.
The Maharashtra Protection of Interest of Depositors (MPID) court on Tuesday remanded Kailash Aggarwal of the Ark Imports, Narayanam Nageswara Rao of the NCS Sugar Ltd, B V H Prasad of the Juggernaut projects Ltd,Varun Gupta and Chandra Mohan Singhal of the Vimladevi Agrotech, Ltd and Ghantakameshwar Rao of the Spin-cot Textiles Pvt Ltd in police custody till August 20. Prashant Boorugu of the Metcore Steel and Alloys Ltd will spend 10 days in judicial custody.
According to the FIR registered by the EOW, it was alleged that the accused misrepresented themselves as investors and encouraged them to trade on NSEL platform. They created forged documents like bogus warehouse receipts to con the investors.
An EOW officer, who is privy to the investigation, said, “Till date we have frozen 332 bank accounts holding Rs 171 crore, attached over 210 properties and seized 15 high-end cars worth Rs 5.8 crore in the case and further investigations are on.”
According to the EOW, Ludhiana-based Aggarwal owes Rs 719 crore to the investors, while Juggernaut Projects allegedly owes Rs 219 crore. Metcore Steels and Alloys Ltd owes Rs 97 crore. VimlaDevi Agrotech Ltd owes 13.94 crore and Spin-cot Textiles owes Rs 38.26 crore.
Meanwhile, the Bombay High Court on Tuesday rejected the anticipatory bail application of Mohit Agarwal, director of Aastha group, and his wife Shilpa Agarwal. Agarwal's name featured in the list of defaulters in the NSEL scam.
NSEL is a commodities exchange. Commodities are supposed to be backed by physical goods in warehouses which were not being done and bogus warehouse receipts were being issued.
Trading was only being done on paper. In September, last year, EOW had received complaint from one Pankaj Saraf, who has formed the NSEL investors’ forum, alleging that the company is duping its investors.The FIR stated that the accused hatched a criminal conspiracy to defraud the investors and misrepresented that they were investors and induced them to trade on the platform of NSEL by creating forged documents like bogus warehouse receipts thereby defrauding the clients. In January this year, the EOW had filed chargesheet in the case in the court.The accused were chargesheeted under various sections of the Indian Penal Code and also under certain provisions of the MPID Act.