The Enforcement Directorate (ED) has attached immovable property worth Rs 19.12 crore under the Prevention of Money Laundering Act (PMLA), 2002, related to the National Spot Exchange Limited (NSEL) fraud. This fraud affected 13,000 investors with a total impact of Rs 5,600 crore. The ED’s Mumbai Zonal Office initiated the investigation based on an FIR filed by M.R.A. Marg Police Station, Mumbai, and handled by EOW, Mumbai Police.
The ED’s investigation uncovered a criminal conspiracy involving NSEL and its defaulting members. They engaged in cheating and forgery by allowing trading in commodities without actual underlying stocks. This led to defrauding approximately 13,000 investors of around Rs 5,600 crore. The investigation identified three defaulting members of NSEL, collectively known as LOIL Group, who obtained funds through fictitious sale transactions of paddy on the NSEL platform, resulting in a gross liability of Rs 720.30 crore towards NSEL.
Further scrutiny of bank accounts revealed that approximately Rs 569.04 crore were diverted from NSEL settlement accounts of LOIL group entities. The diverted funds were then channeled through various group entities for purposes such as repayment of bank loans, business operations, working capital needs, and acquiring immovable properties. As part of the investigation, 34 Provisional Attachment Orders have been issued, attaching properties worth nearly Rs 3,452.16 crore. Additionally, seven Prosecution Complaints have been filed against 148 accused individuals before the Special Court (PMLA), which has acknowledged the complaints.
