Synopsis
On February 5, ED filed a Prosecution Complaint against 19 broking firms and their directors for collusion with NSEL officials in a money laundering case. The investigation is based on an FIR registered under IPC. Significant assets have been seized, and further inquiries are underway.Key Takeaways
- ED files PC against 19 broking firms.
- Allegations include collusion with NSEL officials.
- Investigation initiated from an FIR under IPC.
- Illicit earnings attached amount to Rs 34.74 crore.
- Further investigations are in progress.
Mumbai, Feb 5 (NationPress) The Directorate of Enforcement (ED) announced on Wednesday that it has initiated a Prosecution Complaint (PC) against 19 broking firms and their directors for their alleged involvement with officials of the National Spot Exchange Limited (NSEL) in a money laundering case.
The complaint was filed on January 28 before the Special Court (PMLA) in Mumbai under the Prevention of Money Laundering Act (PMLA), 2002. The court acknowledged the case on February 3.
The investigation was launched following an FIR registered under various sections of the Indian Penal Code, 1860, the ED stated.
According to the ED, its investigation uncovered that these broking firms, after registering with NSEL, misled their clients by providing false assurances regarding the exchange and promoting illegal “pair trade” contracts, which were prohibited.
In collaboration with these brokers, NSEL allegedly established a system that evaded the need for warehouse receipts or physical commodities, facilitating illicit trades knowingly. The brokers, in a criminal conspiracy with NSEL, attracted investors onto the platform with promises of high returns, ultimately defrauding them, as per the financial probe agency.
The illicit brokerage profits were further channeled into business operations, resulting in the layering and integration of proceeds of crime (PoC) to disguise them as legitimate funds.
The ED has already seized illicit brokerage profits totaling Rs 34.74 crore under the PMLA, 2002. This seizure has been ratified by the Ld. Adjudicating Authority, PMLA, New Delhi.
During the investigation, assets valued at Rs 3,288.76 crore have been attached through 32 Provisional Attachment Orders, the ED reported.
Previously, six Prosecution Complaints have been lodged in this case against 94 accused individuals.
Further investigations are ongoing, the ED indicated.
