Bombay HC directs NSEL, Govt to file reply to PIL

Legal trouble for the Jignesh Shah led NSEL appears to be mounting. The Bombay High Court today heard the PIL filed by an investor group against the NSEL.
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Sep 06, 2013, 07.11 PM | Source: CNBC-TV18

Bombay HC directs NSEL, Govt to file reply to PIL

Legal trouble for the Jignesh Shah led NSEL appears to be mounting. The Bombay High Court today heard the PIL filed by an investor group against the NSEL.

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Bombay HC directs NSEL, Govt to file reply to PIL

Legal trouble for the Jignesh Shah led NSEL appears to be mounting. The Bombay High Court today heard the PIL filed by an investor group against the NSEL.

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Ashmit Kumar (more)

Reporter, CNBC-TV18 |

Legal trouble for the Jignesh Shah-led NSEL appears to be mounting. The Bombay High Court today heard the PIL filed by an investor group against the NSEL.

Meanwhile, the I-T dept has sought details from Anand Rathi, IIFL and Motilal Oswal, on their investments in the exchange. CNBC-TV18's Ashmit Kumar reports.

The investors raised the issue that a number of transactions were backed by forged warehouse receipts. They also raised the claim that this crisis had been aggravated by the active connivance and participation of senior employees as well as the managing director etc. These are amongst the other concerns that have been raised in the public interest litigation (PIL). Some other relief sought include the Forward Markets Commission (FMC) or some external agencies taking over the functioning the day to day administration of National Spot Exchange Limited (NSEL).

Also another relief sought has been FMC taking over custody of the commodities and the warehouses. These are some of the reliefs sought.

On the back of these, NSEL responded by saying by clarifying its position that an internal committee has already been setup headed by a former Sebi official. It also pointed out that the finance ministry also has appointed another committee to look into the crisis, that is ofcourse NSEL's position.

On the back of these opening arguments the Bombay High Court made one very interesting observation that incase of any arrests the bail application will also be heard by this same court which happens to be the chief justices court in the Bombay High Court.

So, again legal trouble here as this is not the only PIL, tomorrow the Bombay High Court will be hearing another PIL this one filed by a BJP led legislator Kirit Somaiya who again has raised similar concerns with respect to NSEL.

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