Home >Politics >Policy >3 brokerage officials arrested in NSEL fraud case get bail

Mumbai: The Maharashtra protection of interest of depositors (MPID) court on Monday granted bail to three brokerage executives who were arrested in connection with the 5,574.34 crore fraud at the National Spot Exchange Ltd (NSEL).

The three officials were arrested by the Economic Offences Wing (EOW) of Mumbai Police on 3 March.

The executives were Amit Rathi, managing director of Anand Rathi Financial Services Ltd; C.P. Krishnan, whole-time director of Geofin Comtrade Ltd; and Chintan Modi, vice-president of India Infoline Commodities Ltd.

The court has directed the three to deposit 20 lakh each as surety for bail and present themselves before EOW every Wednesday between 10am and 3pm till the time police press charges.

The three have also been ordered not to leave the country or sell any immovable assets without informing the investigating officer of the case.

The three executives, who were arrested on charges of cheating, forgery, criminal conspiracy and misappropriation, were the first to be arrested outside the circle of NSEL executives, directors or defaulters who owe money to the commodities spot exchange.

The three were arrested after EOW investigations found that the brokers gave “false assurances" to investors of NSEL along with “wrong and misleading statements" to entice people to trade on the spot exchange.

The probe also found that the brokers assured investors that NSEL was a safe investment avenue with fixed returns and that it was regulated by the commodities market regulator Forward Markets Commission (FMC).

The fraud at NSEL came to light on 31 July 2013, when the exchange suspended trading in all but its e-series contracts. These, too, were suspended a week later. On 14 August 2013, NSEL proposed a payout plan, but it has been unable to stick to the schedule and has not made a single successful payout.

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