Business Today

NSEL scam: MCX promoter Jignesh Shah's bail plea rejected

However, the designated Maharashtra Protection of Interest of Depositors Act court judge DP Surana granted bail to Shah's aide and former chief executive of MCX, Shreekant Javalgekar.

twitter-logo PTI   Mumbai     Last Updated: June 25, 2014  | 12:37 IST
MCX promoter Jignesh Shah
MCX promoter Jignesh Shah (Photo: PTI)

A Mumbai court has rejected the bail application of Multi Commodity Exchange (MCX) promoter Jignesh Shah, who was arrested in connection with the Rs 5600-crore National Spot Exchange (NSEL) scam.

However, the designated Maharashtra Protection of Interest of Depositors (MPID) Act court judge DP Surana granted bail to Shah's aide and former chief executive of MCX, Shreekant Javalgekar.

"The bail application of Shah is rejected while the bail application of Javalgekar is allowed," said judge Surana.

Shah had maintained that he being a non-executive director of NSEL was not involved in its day-to-day operations. His claim was contested by the prosecution and lawyer of one of the NSEL investors who has been allowed to intervene by the court. They insisted that Shah was aware of the goings-on and was equally responsible for the scam.

Shah and Javalgekar were arrested on May 7.

The MCX promoter had come under the scanner of Economic Offences Wing and other agencies last year when NSEL, part of the Financial Technologies (India) Limited founded by Shah, faced a payment crisis as nearly 18,000 of its investors allegedly lost millions of rupees.

Meanwhile, the court, while granting Javalgekar bail on a bond of Rs 10 lakh, directed him report to the office of the Economic Offences Wing of Mumbai police every alternative day till the filing of the charge sheet.

The court also asked Javalgekar to surrender his passport to the investigating agency, besides directing him not to induce any person connected with the case.

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