Ex-NSEL CEO Sinha does a U-turn, now blames board for mess

In a dramatic, but expected move, National Spot Exchange Limited’s former chief executive officer and managing director Anjani Sinha reversed the stance taken earlier and blamed the board for the mess.

In a fresh affidavit filed before the magistrate, Sinha said he had signed the earlier affidavit under pressure from the NSEL board members. The affidavit further goes to say that neither did Sinha take any personal benefits from borrowers nor was he delegated the authority to take crucial decisions. Meanwhile, the Economic Offences Wing (EOW) is investing allegations of possible kickbacks to Anjani Sinha based on his agreements with the borrowers. They are looking at a possible 3 percent kickback. Sinha has been remanded to police custody till October 31 as the court observed that the modus operandi of the scam was unique and that they need sufficient time. The court also extended the police custody of two executives arrested earlier - Amit Mukherjee and Jai Bahukhandi - until October 23. The magistrate court was witness to heated exchanges, with the counsels for the two executives alleging that the top brass of NSEL, including promoters and directors were the architects of the scam. The EOW, meanwhile, is busy tightening the noose around the top brass of NSEL. Sources within the EOW confirmed that money trails have been discovered and that the EOW had reason to believe that the trails lead back to the promoters and various group companies. With respect to recovery of money, the EOW sources conformed that 80 bank accounts, 76 belonging to borrowers and four to NSEL have been frozen. Sources also confirmed that after receiving a nod from the collector, EOW is gearing up to invoke the Maharasthra Protection of Interest of Depositors Act. Under this act, the EOW plans to proceed with attachment of assets of those mentioned in the FIR. The FIR features high profile names such as Jignesh Shah, Joseph Massey, Anjani Sinha. The FIR also features the promoter company FTIL as well as various borrowers.