Email proof submitted against Jignesh Shah

Jignesh Shah again missed a chance to come out on bail today as a lawyer of an intervener, who is an investor of the crisis ridden NSEL has submitted some email conversations showing  instances of how Shah was kept informed about happenings at the spot exchange.

The email prints submitted in the court were among the Anjani Sinha, the former MD & CEO of the crisis ridden NSEL and Jignesh Shah, chairman of Financial Technologies and Shreekant Javalgekar, former MD & CEO of MCX. The bail plea has been adjourned for further hearing on 16 June, Wednesday.  

The intervener, Sandeep Karnik argued today that emails exchanged between Jignesh Shah, Shreekant Javalgekar and Anjani Sinha show that Shah and Javalgekar were aware about the decisions taken at NSEL.

The defence lawyer argued that the mails  submitted do not prove that Shah and Javalgekar were in the know about the crisis. The crisis that came out in July 2013 was that there were virtually no stock in warehouses of borrowers who borrowed money using NSEL platform against the their stock of commodities as collatersal.

The defense lawyer on the other hand argued that the session court has the jurisdiction to pass a bail order.

The emails submitted by the lawyer show that NSEL received Rs 6 crore from NK Proteins towards advance fee for the 2011, which is the largest borrower in the scam

One of the emails that was sent to Anjani Sinha to Shreekant Javalgekar states that if MCX has accounting problem, then another solution would be that IBMA can raise a bill directly on FTIL for Rs 1.5 crore on account of “providing domain knowledge for software development relating to bullion dealers and developing customised products in bullion on International exchnages.”

The email also says that bill may be raised in March 2011, in the books this will be shown as dues from FTIL, which can be settled in May 2011.

It also stated that NSEL will compensate IBMA as market promotion expenses, etc. and NSEL will raise a bill on MCX towards a composite fee for warehousing, storage expenses, business promotion etc. of Rs 1.45 crore.