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EOW alleges NSEL funds diverted for benami holdings

Controversial officer Dhoble to probe NSEL case now

Sharleen D’Souza  |  Mumbai 

While tracking the books of accounts of Swastik Overseas Corp Ltd, which had defaulted on the Spot Exchange for Rs 102 crore when the latter suspended trading on July 31 last year, the city police’s economic offenses wing (EOW) says it found something interesting.

Interestingly now on Vasant Dhoble as controversial police officier who is famous for raiding night clubs in Mumbai two years ago for violating rules will handle the probe. Vasant Dhoble who has been brought is as the new Deputy Commissioner of Police at EOW to actively look into this case.

Dhoble two years back was known for raiding Mumbai’s night clubs and night bars and who were violating rules spoiling party with his hockey stick and was known for always having one in his cabin.

EOW alleges money borrowed by Swastik on NSEL’s platform was used to purchase properties in Gujarat as benami ownership. The land was held in farmers’ names.

Eow official told media person that the money was used by Swastik Overseas Corp to buy huge land banks in Gujarat. But, the land was held in farmers name while the firm remained benami owner.

Interesting one largest and master borrower of funds on NSEL became the inspiration for Swastik to use the same route to borrow money. EOW today called Rajeev Todi of Swastik Overseas Corp Ltd for interrogation.

Todi earlier used to work with NK Proteins who has to pay Rs.969 crore, and after he realised that NK Proteins has been receiving money from NSEL, he formed his own company in order to take a loan from NSEL and divert that money to create land banks.

With facing pressure from EOW he has offered to settle his dues and the NSEL, investors and borrowers representatives would soon start talks with him. EOW pressure is helping recovery in the NSEL fiasco.

Jignesh shah, promoter of the FTIL which promoted the NSEL and Joseph Massey are regularly visiting EOW office and holding talks with NSEL borrowers along for settlement and brokers and investors are also part of the discussions and meetings are held in the presence of EOW to which is helping borrowers to settle their accounts.

One such meeting was held today also. Along with the interrogation of borrowers and settlement talks, police is also calling in brokers for interrogation.

Today EOW called four brokers for interrogation in connection with the Rs 5,600 crore NSEL case. Representatives from IIFL, Systematix Commodities Services Private Ltd, Anand Rathi and Geojit Comtrade for interrogation. These brokerages have sent representatives who handle their book of accounts.

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First Published: Wed, January 22 2014. 22:32 IST