Mumbai: A special money laundering court on Monday remanded Jignesh Shah to judicial custody till 1 August. The Enforcement Directorate (ED) had arrested Shah on 12 July on charges of money laundering and for allegedly not cooperating with investigations.
ED, in its submission, sought custody of Shah as it is in the process of filing a fresh complaint. The other 67 accused in the case will remain out on bail.
Shah has applied for bail and the plea will come up for hearing on 26 July.
ED, a specialized financial investigation agency under the ministry of finance, has found evidence of money laundering against Shah under the Prevention of Money Laundering Act, 2002 (PMLA), Mint reported on 14 July.
In the chargesheet, ED alleged a criminal conspiracy leading to the Rs.5,574.35 crore scam at NSEL, 99.99% owned by FTIL. Shah was the chairman of FTIL. ED had registered a criminal case against Shah under PMLA in 2013.
On Wednesday, the investigative agency submitted to the court evidence of a money trail between FTIL and its three units: NSEL, National Bulk Handling Corp. (NBHC) and the Indian Bullion Market Association.
Two instances of fund transfer to the tune of Rs.200 crore and Rs.62.9 crore were found between FTIL and NBHC just days before the settlement crisis hit NSEL. Trading on the exchange was halted on 31 July, which eventually led to a settlement crisis of Rs.5,574 crore.
A transfer of Rs.74.25 crore was also detected between FTIL and NBHC. Funds transfers of Rs.30 crore were also found between defaulters and FTIL subsidiaries.
ED had earlier attached properties worth Rs.600 crore belonging to defaulters such as N.K. Proteins, PD Agro Processors and Mohan India. In June, the review group of the department of economic affairs had asked the ED to start auctioning the attached properties.
The matter will be heard next on 3 and 4 August.