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Financial Technologies India (FTIL) on Sunday termed NSEL Investors’ Action Group founder Ketan Shah’s complaint in the metropolitan magistrate court ‘baseless’. According to FTIL, the complaint was based on a forensic audit by Pricewaterhouse Coopers (PwC), whose "legitimacy is questionable".
FTIL’s statement comes in the wake of media reports that the metropolitan magistrate court had on Friday ordered the police to register a first information report for the alleged diversion of Rs 900 crore by FTIL promoter Jignesh Shah in his other ventures.
Ketan had earlier attempted to file the same complaint with the MIDC (Andheri) police station, which was turned down on the ground that similar complaints on the PwC report filed by MCX were found to be without any substance, the statement added. Bs reporter
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The magistrate also ordered investigationin the case after registering case against Jignesh, his brother Manjay Shah, FTILchairman Venkat Chary, past managing director of FTIL's erstwhile subsidiary Multi Commodity Exchange (MCX) Joseph Massey, other official Paras Ajmera amongothers.
According to FTIL, Ketan's complaint was based on a forensic audit bythe consultancy Pricewaterhouse Coopers (PwC) the legitimacy of which is questionable. "The monies allegedly lost by him while trading in commodities on NSEL's exchange platform through his broker under client-broker agreement," it added.
Ketan had earlier attempted to file the same complaint with the MIDC(Andheri) police station, which was turned down by the police on the groundthat similar complaints on the PwC report filed by MCX were probed by thepolice and were found to be without any substance, the statement added.
Darshan Harshadbhai Patel, the Partner of PwC who wasinvolved in the said audit of MCX, in his correspondence dated December13, 2014 pertaining to use of the report and confidentiality has clearlymentioned that, "No other third party can place reliance on the report (in whole or inpart). Any attempt made by any other third party to rely upon the content ofthe said report lacks evidentiary value and any such reliance would be outsidethe purview of the stated purpose of the report and thereby grosslyunauthorized and hence unlawful."
Meanwhile, FTIL has not received any complaint eitherfrom Ketan or copy of ex-parte order issued by the metropolitan magistrate courtdirecting registration of FIR.
FTIL held Ketan's complaint as an attempt to harass andput pressure on it and NSEL, and thwart the recovery process by diverting the attention of the investigating agencies from the 'real culprits' i.e. the defaulters against whom clear trail of the trading clients' monies has been established.
