EOW to investigate brokers' books in NSEL case

Jignesh Shah updates police on recovery process

Economic Offences Wing (EoW) of Mumbai police investigating the NSEL case will investigate brokers’ role also and may also go deep in to their books once investigation of books of borrowers is completed.

This was revealed by the EoW official today. EoW is investigating the Rs 5,574 crore NSEL default case.

Police is also studying brokers’ role as many of them have mis-sold NSEL products and have also provided margin funding to investors or investing in the NSEL contracts.

Top few leading brokerages are understood to have figured in the list of those investigated by the EoW and one of them is very active in negotiations with Jignesh Shah in the settlement process.

The official however only said that, “we will study their books after we finish investigating borrowers’ books.”

Meanwhile Financial Technologies’ group CEO Jignesh Shah today visited EoW in the late afternoon. Police official said that he had appraised them about the recovery process.

However, while coming out of the EoW office, shah told Business Standard that, “the law will take its own course and I am committed to the recovery.”

EoW official today also said that some more properties have been attached and with that book value of the total properties including shares, investments and movable/immovable comes to Rs 2,990 crore. Out of this Rs.214 crore worth properties are of NSEL directors.

The official said that the process of recovering money from the borrowers has already began and even before filing of charge sheets, the process to sell properties are being permitted.