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The Central Bureau of Investigation (CBI) has registered a preliminary enquiry (PE) into the alleged fraud and cheating by National Spot Exchange Limited (NSEL) after it defaulted on payments to investors. CBI has suo moto taken this step to look into all aspects of the case. The agency will probe the role of all the stakeholders, including Jignesh Shah and Joseph Massey, directors of NSEL.
The agency will also coordinate with the economic offence wing of Mumbai Police, which has already registered a case on the matter and started conducting raids in 52 locations. CBI will take the versions of the individuals and parties involved in the case to lodge a first information report (FIR) soon.
NSEL, part of the Jignesh Shah-led Financial Technologies group, had to suspend trading on July 31 following a government directive. It has defaulted on six consecutive weekly payments to be made to its investors.
Finance Minister P Chidambaram had earlier said that CBI, the Forward Markets Commission and the corporate affairs ministry would look into different aspects of the NSEL case and take action depending on their jurisdiction.
CBI would be looking into the instances of fraud and cheating that fall under the Prevention of Corruption act. The agency decided to register an enquiry after verifying a complaint it had received from the investors and additional documents it accessed through its sources.
In the past, CBI had 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 Serious Fraud Investigation Office were roped in to look into the matter.
