CBI registers preliminary inquiry into NSEL case

NEW DELHI: CBI has started an inquiry into alleged irregularities and duping of customers by the National Spot Exchange Limited which is facing a Rs 5,600-crore payment crisis.

CBI said today that the Economic Offences Wing of its Mumbai branch had received complaints from the investors who lost their money with the spot exchange promoted by Jignesh Shah-led Financial Technologies.

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 July 31 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 Economic Offenses Wing of CBI has also asked the promoters to present all the relevant documents regarding the functioning of the spot exchange and might also call them for questioning soon, the sources said.

BJP leader and Investors Grievances Forum president Kirit Somaiya has recently filed a PIL in the Bombay High Court stating that NSEL forged/manipulated documents regarding stocks and liquidity and allowed some of the companies to pledge the same stock with more than one financial institution.

Somaiya has also alleged government officials and politicians had connived with NSEL to cheat investors.

There are 24 buyers/members who have to pay Rs 5,600 crore to the spot exchange for settling dues of the investors.