Jignesh's bail plea rejected

He was arrested in connection with the Rs 5,600 cr NSEL scam

A Mumbai court here on Tuesday rejected the bail application of MCX promoter Jignesh Shah arrested in connection with the Rs 5,600-crore National Spot Exchange Ltd (NSEL) scam.

However, the designated Maharashtra Protection of Interest of Depositors (MPID) Act court judge D P Surana granted bail to Shah’s aide and former chief executive of MCX, Shreekant Javalgekar. Shah will file an appeal in the Bombay high court against the rejection of his bail plea. “The bail application of Shah is rejected while the bail application of Javalgekar is allowed,” said judge Surana. The court, while granting Javalgekar bail on a bond of Rs 10 lakh, directed him to report to the office of the economic offences wing of the police every alternate day till the filing of the charge sheet.

The court also asked Javalgekar to surrender his passport to the investigating agency, besides directing him not to induce any person connected with the case.

Shah had maintained that he being a non-executive director of NSEL was not involved in its day-to-day operations. His claim was contested by the prosecution and lawyer of one of the NSEL investors who has been allowed to intervene by the court. They insisted that Shah was aware of the going-on and was equally responsible for the scam.

Shah and Javalgekar were arrested on May 7.

Shah had come under the scanner of EOW and other agencies last year, when NSEL, part of the Financial Technologies (India) Limited (FTIL) founded by Shah, faced a payment crisis as nearly 18,000 of its investors allegedly lost millions of rupees.

Meanwhile, FTIL said in a statement that Shah will file an appeal in the Bombay High Court against rejection of his bail plea.

"Just as Javalgekar has got the bail, we have full confidence in the judicial system and are approaching the High Court for Shah's bail also," it said.