Mumbai: In the most high profile arrest in the NSEL scam, the Mumbai crime branch Economic Offences Wing (EOW) arrested Financial Technologies (FT) chairman Jignesh Shah and its chief financial officer Shreekant Javalgekar on Wednesday.
They will be produced in a metropolitan magistrate court on Thursday, where police will demand custody for further interrogation. This takes the number of arrests in the case to 11.
Explaining the reasons behind the arrest, additional CP (EOW) Rajvardhan said both were evasive and not cooperating in the questioning. This, he said, forced the police place them under arrest, which will allow custodial interrogation and gain more insight into the scam.
“Both were entirely shifting the blame on NSEL managing director Anjani Sinha. They were part of a criminal conspiracy and operated the NSEL like a non-banking financial institution,” he added.
The duo will be produced in the Esplanade court around 1 pm on Sunday.
He said that Shah had linked the value of trade in the NSEL to FT’s percentage income to earn more royalty.
“So it was FT that was gaining brand value in the market which also led to the launch of other exchanges by the firm. The role of brokers is also being investigated as brokers charged a certain percentage on fake warehouse receipts which never saw any actual movement of goods,” he added.
