CBI accesses documents related to NSEL crisis

Finance Minister P Chidambaram had said on Thursday that CBI, FMC and the ministry of corporate affairs would look into different aspects of the issues in NSEL

The Central Bureau of Investigation is closer to a preliminary enquiry in the National Spot Exchange Ltd (NSEL) scam. The agency is in “the process of examining all the available material,” a senior official told Business Standard.

NSEL, part of the Jignesh Shah-led Financial Technologies group, had to suspend trading on July 31 after a government directive. It has defaulted on six consecutive weekly payments to be made to its investors.

Finance Minister P Chidambaram had said on Thursday that CBI, the Forward Markets Commission (FMC) and the ministry of corporate affairs would look into different aspects of the issues in NSEL, “which flouted rules from day one”, and take action under their respective jurisdictions.

CBI would look into alleged instances of fraud and cheating that attract the Prevention of Corruption Act. It has in the past investigated cases such as the Satyam scandal, which involved a private party. The agency started its probe after government bodies such as the registrar of companies and Special Fraud Investigation Office were brought to probe the matter.

The income tax department is also probing financial details of investors in NSEL, to check any involvement of black money. FMC is expected to give a report in a couple of days, after which the three bodies will decide the action that needs to be taken.