CBI arrests FTIL promoter Jignesh Shah in MCX-SX scam probe
21 September 2016
The CBI on Tuesday arrested Jignesh Shah, founder-chairman of Financial Technologies India Ltd (FTIL), in connection with its investigation into the alleged irregularities in granting sanction to the MCX Stock Exchange (MCX-SX) in 2009-10.
The CBI also carried out raids at nine locations, including Shah's offices and home, reports quoting a CBI official said.
The CBI is reported to have carried out searches at the premises of FTIL, MCX Stock Exchange, MCX-SX, former SEBI AGM Muralidhar Rao, DGM Rajesh Dangeti, AGM Vishakha More and executive director J N Gupta in connection with the investigations.
CBI decided to arrest him when he failed to satisfactorily reply to the questions put before him, reports said, adding that Shah gave conflicting answers during questioning.
He is likely to be produced before a designated court in Mumbai today.
''The CBI on Tuesday arrested a promoter of two Mumbai-based private companies and conducted searches at nine places in Mumbai, including the residence and office premises of the said promoter,'' reports quoted CBI spokesperson RK Gaur as saying in Delhi.
Incriminating documents, including transfer of shares by private companies and purchase of assets, were reported to have been recovered during searches.
The CBI had filed the FIR in the case under IPC sections related to criminal conspiracy and cheating besides provisions of Prevention of Corruption Act for alleged abuse of official position.
The agency had alleged that promoters of MCX-SX had entered into a buy back arrangement with a nationalised bank in violation of Securities Contract Regulation Act, 1956 and Securities Contract (Regulation) (Manner of Increasing and Maintaining Public Share-holdings in Recognised Stock Exchanges) Regulation, 2006. CBI had alleged that Shah, in connivance with Sebi officials, suppressed this material fact while applying for extension of recognition of the stock exchange, to conduct trade in currency derivatives, and fraudulently obtained the extension of recognition of the exchange in 2009 by cheating Sebi.