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
outlookindia.com
-0001-11-30T00:00:00+05:53

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.

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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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