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Seven more defaulters arrested in National Spot Exchange scam

Seven more defaulters arrested in National Spot Exchange scam

The default amount of the seven arrested accused is about Rs 1,200 crore. The arrests come a week after the Mumbai policy filed a 9,000-page supplementary chargesheet against NSEL promoter Jignesh Shah.

(Photo for representation only. Source: Reuters) (Photo for representation only. Source: Reuters)

The Mumbai Police has arrested seven more defaulters in connection with the alleged Rs 5,600-crore National Spot Exchange Limited (NSEL) scam, a week after filing a 9,000-page supplementary chargesheet against the spot exchange's promoter Jignesh Shah.

Kailash Agarwal of Ark Imports, Prashant Borugu of Metcor Alloys, Narayan Rao of NCS Sugars, BVH Prasad of Juggernaut projects, Varun Gupta and Chandramohan Singhal of Vimladevi Agrotech and Ghantakameshwar Rao of Spincot Textiles were arrested, an official of the Economic Offences Wing (EOW) of the Mumbai Police said on Monday.

The default amount of the seven arrested accused is about Rs 1,200 crore, the official said adding all the accused were called for questioning and arrested subsequently.

They would be produced before a court on Tuesday.

On August 4, the EOW had filed a 9,000-page chargesheet against Shah in the special Maharashtra Protection of Interest of Depositors court. So far, investigators have attached Rs 4,900 crore worth of assets and Rs 356 crore has been deposited in an escrow account.

A first information report was registered last October.

EOW had made its first arrest on October 9 last year when it took into custody Amit Mukherjee, an assistant vice-president (V-P) of the Exchange. Two days later, it arrested Jay Bahukhundi, another NSEL assistant V-P.

Along with Shah, his close aide and NSEL Board director Shreekant Javalgekar were arrested on May 7 and both had applied for bail in the sessions court. Nine others, including defaulters, were held before Shah's arrest.

Investigators have interrogated several large brokers in the case and also received interim reports from forensic auditors.

The probe by EOW brought out that Shah and Javalgekar had allegedly hatched a criminal conspiracy with other accused, who ran this particular exchange as a non-banking financing company, which led to the default of Rs 5,600 crore payment to over 11,000 investors.