Mumbai Police Attaches Properties of Financial Technologies
The move is part of the probe into the Rs 5,600 crore NSEL scam.
Shares of Financial Technologies Ltd. dropped almost 18 percent to its lowest level since September 2004 after Mumbai Police’s Economic Offences Wing attached assets of the Jignesh Shah-promoted company.
FTIL’s headquarters have been taken over under the Maharashtra Protection Of Interest Of Depositors Act.
A spokesperson of Financial Technologies, which is now known as 63 Moons Technologies Ltd., said the company will approach the court against the Mumbai Police action.
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. There is no legal basis for the said action and we will be moving court soon on the said letter.63 Moons Technologies Statement
Bharatiya Janata Party MP and founder of the Investor’s Grievances Forum Kirit Somaiya said “...this attachment was the next logical step.” Both the Central government and Maharashtara had asked them to take stern action and the EOW’s move had judicial backing, he added.
He also said that he had personally interacted with investigating agencies over the past two days and had asked them to move faster and more aggressively in this case, since investors have been waiting for their money for over four years now.
Last week, the anti-money laundering court in Mumbai sent Shah to judicial custody till August 1 in the National Spot Exchange (NSEL) payments default case. The NSEL scam, involving Rs 5,600 crore, came to light after the now defunct exchange, promoted by Financial Technologies, failed to pay its investors in commodity pair contracts after July 31, 2013. EOW later probed the scam and made a series of arrests.