Did You Know?
Economic Offences Wing of Mumbai Police claims embezzlement of Rs 2000 crore by Jignesh Shah 63 Moons (https://www.63moons.com/)
Jignesh Shah is the founder, Chairman Emeritus and Chief mentor of 63 Moons Technology Limited also known as FTIL. The businessman is known as the ‘Innovator of Modern Financial Markets’, However recently he has been accused of fraud and forgery. This article attempts to dig out the remnants of the truth, concealed.
Charge Sheet Against The Dubious Activities of Jignesh Shah 63 Moons
The CBI has filed a charge sheet against FTIL, NSEL and various shell companies in the NSEL scam matter. The EOW of Mumbai police has also filed a chargesheet against Jignesh Shah which lists out how Jignesh Shah cooked the books of NSEL.
The Case: Jignesh Shah 63 Moons
‘Jignesh Shah 63 Moons’ is the title subsuming a business, an innovator, a politician and several crores of global assets. The actual case of the year 2013, broke out due to payment default at the National Spot Exchange. According to sources, the investors were financially broke when FMC (Forward Market Commission) advised NSEL to not launch any further contracts.
At that very instance, Jignesh Shah’s FTIL made no efforts regarding the financial risk and continued to promote FTIL. Where, he was the then face of the doubted firm, FTIL. Shah relaunched FTIL as 63 Moons Technologies. All these actions of Jignesh Shah, initiated an investigation against, Jignesh Shah 63 Moons Technologies.
Generic Exemption of NSEL promoted by Jignesh Shah 63 Moons
It was June 5, 2007, when under Section 27 of FCRA, the government of India exempted NSEL in generic terms to boost volumes and improve economic viability. Soon after NSEL, two other exchange platforms, NSPOT and APMC were exempted too, by the government of India on the same grounds.
The legit sources claim that the initial exemption took place because of the flawed recommendations of FMC (the Ministry of Consumer Affairs) regarding the launch of contracts. Where, FMC recommended to settle all the existing contracts in a hap-hazard manner, denying any further launch. This step not only created chaos in the market but also resulted in a financial crisis, thereafter, a proper investigation was initiated.
The above mentioned lines could be a simple explanation for the scam involving crores of rupees, but there is always a veil to the actual truth. Here, the point to ponder is, why would FMC recommend a flawed action? Who would be benefited if the NSEL would not pay back the investors? & Who could be the actual face behind the scam?
The Closure: NSEL & Jignesh Shah 63 Moons, Merely Obeying FMC?
The Ministry of Consumer Affairs issued a notice against NSEL on April 27, 2012 demanding transparency of NSEL trade. NSEL made an immediate but random reply to the ministry, to which actions could not be taken by the authorities. Moreover, soon after the abrupt silence the ministry ordered NSEL to restrict the launch of contracts immediately, on the suggestion of FMC.
However, it needs to be mentioned that NSPOT was given a time of approx 2 years during the same tenure to restrict their trade. But, the decision making of FMC got distorted at the time of NSEL. Rather, FMC wrote to the Department of Consumer Affair, where an alliance of all the mentioned organizations ultimately led to an abrupt closure of NSEL on July 31, 2013.
Least anyone was concerned that all this mess would lead to financial fracture of approximately Rs 6000 crores. Now, after the chaos of legit complainants the case has just become a blame game for all the accused. Therefore, the investigation teams are acting as a discording unit amidst accusations and actual crime.
The Investigation Against NSEL & Jignesh Shah 63 Moons
The investigations started when it was extrapolated that the NSEL crisis affected 13000 trading clients. However, the verity of the count was uncertain, as the brokers never presented the ‘know your customer’ data to the Mumbai High Court, even after legal orders.
Indeed the uncertainty led the Enforcement Directorate & Economic Offences Wing to become the two major teams to expose the scam. The investigation teams revealed the scam of Rs 2000 crores and unveiled the dubious brokers, along with their modus operandi.
The investigation asserts that the defaulters made illegitimate trade of NSEL products. The scamming traders used to postulate stocks and frame fallacious receipts. This aided the NSEL to extract default capital for their personal use. It is also believed that Jignesh Shah 63 Moons was amongst the major beneficiaries of the scammed capital. As, the NSEL, the first commodity exchange of India, was incorporated by the nominees of NFIT aka Jignesh Shah 63 Moons Limited.
The EOW (Economic Offences Wing) Assertions Regarding Jignesh Shah 63 Moons
The Economic Offences Wing (Mumbai police) unveiled the fraud worth Rs 2000 crore, and indicates its linkage with Jignesh Shah 63 Moons. The assets subsuming Jignesh Shah 63 Moons headquarters, were seized under Maharashtra Protection of Deposit Act, bank accounts and deposits.
EOW, ED and Shah have been under legal contradiction since then. Jignesh Shah was arrested in year 2016, by Enforcement Directorate (ED) in connection with Rs 6000 crore scam (where some money is invested in fallacious immovable assets and some has been invested in properties, while rest remains invisible in public domain) at NSEL, a firm under Jignesh Shah 63 Moons.
The ED believed that Jignesh Shah 63 Moons was involved in money laundering and in accordance with the same, Shah was remanded to judicial custody by PMLA (Prevention of Money Laundering Act), then. However, Shah called the actions illegal, and specified that he will be taking court’s help regarding the false accusations.
The CBI Claims Against Jignesh Shah 63 Moons and Brokers
The major allegation of the case is tampering of server and emails. Although evidence claims differently, Jignesh Shah asserts it as an action of EOW. In order to disclose the same The Central Bureau of Investigation (India) raided Jinesh Shah 63 Moons several times to reach a conclusion.
CBI booked Jignesh Shah and Joseph Massey in regards to the FIR under ‘prevention of corruption act’. CBI claims that two public sectors MMTC and PEC were forced to invest in NSEL, and this led to a loss of Rs 120.75 Crore loss to PEC (2014). The CBI raided around 15 locations and registered cases against brokers and PEC’s dubious officials, too. However, the PEC claimed CBI to be biased, favoring the politicians and bureaucrats involved.
The Original Complainant: Jignesh Shah 63 Moons Case
The original Complainant Panakaj Saraf, who is a legitimate investor of NSEL, reached the special court of MPIDA (Maharashtra Protection of Interest of Depositors Act) for speedy investigation regarding the scam. Panakaj Saraf’s main agenda is to retrieve evidence from NSEL and FTIL servers. As, the complainant believes that the servers subsume the actual track record of the dubious transactions regarding the scam.
However, raising the eyebrows of the victims, EOW is still unable to provide any legitimate data from the crashed servers of FTIL and NSEL. Therefore, the special courts of India have guided the investigation officers to analyze and submit a report on the retrieved data within the next 6 months, on August 26, 2023.
The application was raised by Panakaj Saraf for the report, as he believes that all the investors of NSEL have right to information regarding the investigations of NSEL. To which EOW objected and replied after a year, claiming that the mirror images of the servers are being obtained and the analysis is under process, but that does not give any grounds to Panakaj to ask for such a report.
To which, the court dismissed the objection and ordered EOW to function as required. The court claims that for a vigilant watch, an analysis report must be provided by the EOW. Anyways, here is a list of entities accessed from Jignesh Shah 63 Moons by EOW.
|Seizures From Jignesh Shah 63 Moons
|All the original documents namely, audited balance sheet (NSEL), IT returns reports, journal ledger of marginal money, Grant Thorton forensic report, FTIL annual report, warehouse receipts and membership details of 24 borrowers. Along with 5 CDs containing NSEL data.
|6 Hard disks from server storage of FTIL office and 16 hard disks from data storage of FTIL office.
|15 Hard disk regarding 3 servers of NSEL
|9 Hard disk regarding server of NSEL (NSEL Premises, FT Tower, Andheri East)
|CPU & hard disk from NSEL (NSEL Premises, Palanpur, Gujrat)
|Hard disk subsuming mirror image of FTIL, MCX and NSEL hard disk (Chennai). Along with, AMC bills (FTIL) and information regarding Metkore Alloys in the form of hard disk and documents.
|Bank Statement, demat account number files, account books, IT returns documents, cash books, bank books, ledger from Jignesh Shah’s personal residence.
|FTIL file (Baroda office) and 2 hard disk (Chandrakant Kamdar office, Baroda)
The Conclusions Led By Seizures: Jignesh Shah 63 Moons
The EOW claimed to have accessed several seizures from the several locations linked with Jignesh Shah 63 Moons Limited. Moreover, based on those entities here are the conclusions made by the Economic Offences Wing.
- EOW claims Jignesh Shah 63 Moons to be the promoter, director and Vice Chairman of NSEL. The Chargesheet of EOW also asserted Jignesh Shah as the primary face, used for marketing FTIL and NSEL. [NOTE: FTIL owns 99.99% of the total capital share of NSEL.]
- Jignesh Shah is found guilty of making fallacious assurances and presentations regarding business enhancement of NSEL. According to EOW, even after notices from the Ministry of Consumer Affairs, Shah ignored the financial risk regarding the NSEL. And, kept promoting the business, which eventually resulted in immense losses of various clients.
- The officials of EOW have also made allegations disclosing the negligence of Shah regarding the NSEL risk management. EOW asserts that this management negligence led NSEL to make huge financial deals without authentic checks, balance sheets and internal control.
- Jignesh Shah 63 Moons is also charged with compromising risk management parameters and expanding unregulated dubious contracts at NSEL (2012-13). The analysis done by EOW claims that the unexplained and immediate profit of NSEL, counting Rs 130 crores is a result of dubious actions of Jignesh Shah 63 Moons.
- Last but not the least, the officials of EOW believe that Jignesh Shah is the name linked with the fraud of Rs 5600 Crores by NSEL.
Although the claims are yet not proved legit by the court, Jignesh Shah has made all attempts to discord himself and paint 63 Moons Limited as the most ‘law abiding’ firm. Jignesh Shah 63 Moons Limited, have their own story regarding the fraud. The businessman attempts to claim himself as clean and in order to do so, finger-points the EOW. Here are a few counter-claims made by Jignesh Shah 63 Moons.
Counter Claims: Jignesh Shah 63 Moons
Did You Know?
After a petition by specific investors, the Bombay High Court directed the FMC to appoint a forensic auditor for E-Series products of NSEL. Then, ‘Choksi and Choksi’, the audit firm, gave a clean-chit to the E-series of NSEL. This made FMC issue an NOC notice for the E-Series, benefitting 40,000 genuine claimers.
“In India, innovation is either rewarded or destroyed… in my case, it was the latter.” says Jignesh Shah 63 Moons, after his trading platforms were accused of scamming the global investors. Jignesh Shah 63 Moons claim that their innovative softwares have been a prey to the malicious politics and accused several big names for the same. The businessman also asserted the chargesheet of EOW as ‘without legal basis’ and rather questioned the actions of EOW.
As in one of his interviews, Shah states, “we have received a letter from EOW dated 18/7/2016 at 6 pm today on 19/7/2016 securing assets of FTIL. 63 Moons is a listed company having 63000+ shareholders and about 1000+ employees. We will take all legal remedies to protect their interest…”.
Other than Jignesh, the official spokesperson of the FTIL also claimed that the financial chaos was consequential and if the firm had been given enough time, the situation had been different for the investors and firm as well. Also, the FTIL was saddened about the forced exit of Jignesh Shah, Joseph Massey and Shreekant Javalgekar, with a deadline of 90 days (2013).
The spokesperson also acknowledged the innovator within Jignesh Shah and congratulated him for his innovations regarding JS Innovation Labs and Jignesh Shah 63 Moons Technologies Limited (the latter is the new avatar of FTIL).
It also must be noted that in order to prove FTIL legitimate, Jignesh Shah has been fighting several court cases and has also made few statements via the legal actions. However, it must be stated that several associates of the case have been making claims, allegations and statements, but the actual truth is yet to be unveiled. Justice is still awaited.
Moreover, it can not be denied that all the people associated with the case have exclusive associations and these associations, somewhere or the other, neutralize the struggle required for exposing the truth. One such political association is mentioned below, let’s figure out the deeds behind the bushes.
Jignesh Shah 63 Moons: Alliance With Rahul Gandhi
Rahul Gandhi has dubious connections with arms dealer Sanjay Bhandari and alleged scammer Jignesh shah? Well, Rahul Gandhi and Jignesh Shah 63 Moons are linked together in the recent reports, after Rahul Gandhi purchased the land of HL Pahwa. Although the politician gets muted at the question of the FTIL links, it can not be denied that Rahul Gandhi, along with sister Priyanka Gandhi was associated with Jignesh Shah 63 Moons regarding the dubious land purchase.
Sources claim that soon after the purchase, the land was again sold to Jinesh Shah 63 Moons in order to veil the money sacks. Moreover, the political links of Shah have facilitated him in his legal struggle. However, an official report regarding the same is awaited and hence no legit claims could be made regarding the same. Rather, all the claims can only be termed as ‘acquisitions’.
Conclusion: Jignesh Shah 63 Moons
Jignesh Shah is the innovative businessman of India, who provided one of the most innovative trading platforms to global traders. But, at least the innovators knew that soon they would be after the brokers for their assets.
FTIL, the old version of Jignesh Shah 63 Moons Technologies Limited has been accused of fraud worth Rs 5600 Crores. Where, neither Jignesh shah, nor other accused people take responsibility for the same. As, FMC ordered NSEL (controlled by FTIL) to launch no new contracts and cease the actions of the firm, immediately.
The authorities justify their actions by claiming the individuals behind the NSEL and FTIL, were a ‘mis-fit’ and the latter justify themselves by claiming the fraud as an action of consequences.
Amidst the cross-road of allegations and revelations, the investigation team EOW was also accused of mis-leading the case by hampering the data sourced by the collapsed servers of the accused firms. Where, EOW also has its own claims, and asserts Jignesh Shah 63 Moons as the main accused.
However, in order to reach a conclusion the authorities have to re-dig the case and fetch out all the necessary information regarding the same. But since 2013 the case has turned itself into a loop of acquisitions and claims. We hope that the recent surfacing of the case, brings out some exclusive revelations, aiding the victims of the case. Till then let’s hope for the best and update ourselves with all the aspects of the case, mentioned in the article. As, justice must prevail.