He was booked under the PMLA, after he refused to cooperate with ED officers during his 10-hour questioning
The Mumbai team of the Enforcement Directorate (ED) yesterday arrested Jignesh Shah, founder of Financial Technologies India (FTIL), on charges of money laundering in the multi-crore National Spot Exchange Limited (NSEL) scam.
Jignesh Shah. File pic
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An ED officer confirmed that Shah was arrested yesterday following a 10-hour-long questioning session. Later, the agency tweeted about his arrest. Shah was booked under Section 19 of the Prevention of Money Laundering Act (PMLA). He will be produced before the Special PMLA court today. In the past, Shah was arrested by the Economic Offences Wing (EOW) of Mumbai police and released on bail in August 2014.
ED believes they have substantial evidence to nail Shah’s involvement in the money laundering case, and took him in custody after he refused to cooperate with the investigators. Last year, ED prosecuted several NSEL officials and 67 others under the PMLA after their investigation led them to a R3,721-crore money trail.
The scam first came to light in July 2013 after NSEL failed to pay its 13,000 investors in commodity pair contract, following which they lost nearly R5,600 crore.
It later came to the fore that the NSEL neither had the money nor the stocks to pay the investors back. ED then launched a joint probe with EOW after registering a case under PMLA in 2013.
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