SIT report on NSEL payment crisis probe by Wednesday

Finds substance in complaints regarding cheating, fraud, forgery

The Special Investigation Team (SIT) set up by the Economic Offences Wing of the Mumbai Police has found substance in the complaints of cheating, fraud and forgery in the National Spot Exchange Ltd (NSEL) crisis.

SIT, which will soon finalise its report, is expected to decide how it was a criminal offence and thereby recommend action against the persons concerned. Action will be taken under the Indian Penal Code and the Maharashtra Protection of Interest Depositors Act.

“SIT is expected to submit its report by September 18 to  Commissioner of Police Satyapal Singh and joint commissioner (crime) Himanshu Roy. SIT has looked into the complaints received from NSEL and a couple of investors with regard to cheating, fraud and forgery. There is a substance in these complaints,” said an officer is involved in the SIT probe told Business Standard.

However, the officer declined to say what specific action would be initiated in this regard.

The officer said a First Information Report would be lodged against the persons concerned after SIT gave its report next week.

NSEL in its complaint filed at the EOW  blamed former chief executive officer Anjani Sinha and his management team for the present crisis. NSEL has complained about the alleged nexus between the Sinha-led team and the entities that failed to meet payment obligations.

On the other hand, investors in their complaints sought criminal proceedings against owners, promoters and officials of NSEL..