BackNSEL crisis: Enforcement Directorate asks FMC for SGS, Grant Thornton reports
NSEL had hired SGS to verify the quantity of commodities lying in borrowers' warehouses
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Mumbai: The Enforcement Directorate (ED) has asked commodities regulator Forward Markets Commission (FMC) for Swiss verification services firm SGS SA’s report and accounting firm Grant Thornton Llp’s audit report in connection with the ₹ 5,600 crore payment crisis at National Spot Exchange Ltd (NSEL).
The spot exchange in August hired SGS to verify the quantity of commodities lying in borrowers’ warehouses and appointed Grant Thornton as its forensic auditor.
On Monday, the ED, which looks into foreign exchange violations and money laundering, registered a case against NSEL, its promoters including Jignesh Shah, and directors under the Prevention of Money Laundering Act.
Under this, the ED can probe the spot exchange, along with other related parties mentioned in the first information report (FIR), for alleged money laundering and siphoning off funds abroad. The Act allows law enforcement authorities to seize property involved in money laundering.
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