A few years after Jignesh Shah secured bail in a case pertaining to NSEL scam, Enforcement Directorate officials arrested him late Tuesday. ED officials said the agency had found clear evidence of money laundering against Shah.

The NSEL scam was a ponzi scheme and has been estimated to be a Rs 5,600-cr fraud.

Shah has been arrested for non-cooperation with investigative agencies in relation to the scam. He will be produced in a PMLA court on Wednesday and the agency will seek his custody in the court, according to ED officials.

Lawyer HP Ranina told CNBC-TV18 that Jignesh Shah will be produced in the PMLA court on Wednesday morning. The court will then decide whether to remand him in police or judicial custody and thereafter, a chargesheet will be filed.

Ranina said that the likelihood of Shah getting a bail would be slim if there is enough evidence produced. Based on evidence, the court may even attach his assets, he added.

BJP MP Kirit Somaiya who claims to have exposed the scam four years ago, said that he had spoken with SEBI Chairman on the case on Tuesday and requested that the probe must be expedited.

He added that he would meet Union Minister of State in Finance and Corporate Affairs Arjun Meghwal on Wednesday and take up repayment of small investors.



Below is the verbatim transcript of HP Ranina and Kirit Somaiya’s interview to Shereen Bhan and Surabhi Upadhyay on CNBC-TV18.



Shereen: Our colleague Ashish Mehrishi just breaking that story, telling us that Jignesh Shah has now been arrested by the Enforcement Directorate (ED) in the National Spot Exchange (NSEL) matter. Does this at all come as a surprise?



Ranina: There was a found credible evidence to nail him and because of that they have arrested him because as we have just heard that 80,000 people have been taken for a ride that they did not have the requisite, the stocks on hand and still these were shown. It is a clear case of fraudulent transactions and therefore this is the right case for the man to be arrested. Obviously he will be produced before the court tomorrow morning and that then his bail plea will be decided or remand will be extended. So, this is right thing to do if there is credible evidence against Jignesh Shah.



Shereen: How do you see this playing out from here, this is now a long drawn matter. It has been now going on for several months now. How do you see it playing out from here?



Ranina: The law will take its own course. Tomorrow the court will decide whether he should be remanded to police custody or judicial custody and for what period of time and then the investigation, interrogation of Jignesh Shah will begin and then of course charge sheet will be filed once the ED firms up its case. This is how it will pan out; of course it will go on for several months and possibly years before the matter is finally by decided by the Supreme Court.



Shereen: The enforcement directorate has arrested Jignesh Shah and he will be produced before a PMLA court in Mumbai tomorrow morning, your first reaction?



Somaiya: I am really so much satisfied because you may recollect I had exposed the NSEL scam around 4 years back. It was my first petition to Mumbai High Court and then several other petitions and now the issue is going to the logical end.



Today afternoon I had some discussion with Sebi chairman also and there is also action expected against some brokers.



Shereen: You are saying that you had a conversation with the market regulator with the Sebi chief today on this matter?



Somaiya: Sebi chairman had come to interact with the finance committee of parliament. During the discussion I had discussion on NSEL scam also. Regarding Jignesh Shah and non-transparent violation, money laundering I had discussion with enforcement directorate few days back. Today on the NSEL scam once again I requested Sebi chairman that the investigation must be streamlined, strengthened and sped up.



Sebi is looking after the non-transparent behaviour transaction action of couple of brokers. That is a separate issue but connected with NSEL and Jignesh Shah, enforcement directorate, NSEL scam, money laundering this is another issue.



Now we are pushing economic offence wing of Mumbai Police so that the money can be reimbursed to the investors. Tomorrow I am having a meeting with Minister of State for Finance Arjun Meghwal along with some other issues I will be discussing NSEL scam also.



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