19 June, 2021

The Shah Of Fraud

How his political connections helped one man subvert it all

Fotocorp (From Outlook 16 September 2013)
The Shah Of Fraud

Warehouses that exist only on paper. A politically  connected promoter with a charmed existence. And protesters alighting from bmws and Mercs to complain that they have been bilked. As a government-appointed committee looks into the multi-crore National Spot Exchange (NSEL) scam, one thing is clear—this one is a beauty. There is blatant playing of the system by NSEL promoter Jignesh Shah and the unhealthy stench of a politician-businessman nexus.

Many rules have been broken. For instance, under the rules, NSEL has to complete trades within 10-11 days, but it was giving contracts for 25-34 days, allowing speculation in trade and ensuring abnormal returns to traders.


Wrongdoings At NSEL

  • It was offering 25-34-day contracts for commodity trading while a maximum of 11 days are allowed
  • Warehouse receipts of commodity stocks were being issued without warehouses actually having stocks
  • Independent investigations have shown benami investors and owners of...
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