Mumbai, 7 May 2014

The economic offense wing (EOW) of Mumbai Police today arrested Financial Technologies promoter Jignesh Shah in connection with Rs. 5,600 crore National Spot Exchange Ltd’s (NSEL) scam.

NSEL , promoted by Jignesh Shah-headed Financial Technologies (India) Ltd (FTIL) is facing Rs.5,574.35 crore settlement crisis. It has failed to settle Rs5,600 crore due to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on 31st July 2013 on government direction.

Gujarat based NK Proteins is the biggest defaulter with dues of about Rs.970 crore, according to NSEL. NKP’s Nilesh Patel, son of former NSEL chairman Shankarlal Guru was borrower and his arrest in October last year was the first action against a borrower who has been defaulting payments to the spot exchange.

NSEL has filed complaint against five of its defaulting members before the investigation authorities. This includes Ark Imports Pvt Ltd, Lotus Refineries Pvt Ltd, NK Proteins Ltd, Vimladevi Agrotech Ltd and Yathuri Associates.