The Mumbai court recently issued a directive to the Economic Offences Wing (EOW) of the Mumbai Police to investigate the involvement of Ramesh Abhishek, Chairman of Forward Markets Commission (FMC), in the National Spot Exchange Limited (NSEL) payment default crisis. The special court, operating under the Maharashtra Protection of Interest of Depositors (MPID) Act, granted a request by NSEL for further investigation into Ramesh's role. Special judge AS Sayyad, after reviewing the evidence, noted suspicious actions and omissions on Ramesh's part during his tenure as FMC Chairman. The judge emphasized that conducting a thorough investigation would reveal the truth and aid in determining the criminal liability of those responsible. The court clarified that it was not passing any prejudiced judgment against Ramesh but simply allowing the investigation to proceed. The investigation officer was instructed to carry out an impartial investigation without being influenced by the court's observations. A report on the investigation against Ramesh was to be submitted within approximately 40 days. The case originated in 2014 when an investor lodged a complaint stating that he was deceived and suffered significant losses. After the default on the NSEL platform in June 2013, the investor filed a complaint, leading to the registration of an FIR under the MPID Act. The Economic Offences Wing (EOW) conducted a comprehensive investigation over a span of nine years, resulting in the filing of eleven chargesheets. NSEL's application highlighted Ramesh's appointment as full-time Chairman of the FMC from September 2012 to September 2015 and his active involvement in FMC decisions related to NSEL between 2010 and 2015. NSEL further alleged that, under Ramesh's leadership, FMC exceeded its jurisdiction by submitting a malicious proposal to the Ministry of Corporate Affairs, aiming to forcibly merge NSEL with its parent company, Financial Technologies Group (now known as 63 moons Technology). According to NSEL, this proposal was made with the intention of causing losses to NSEL, its parent company, and brokers and defaulters. The Union Ministry of Corporate Affairs approved the amalgamation based on FMC's proposal, but the Supreme Court overturned this decision in 2019. Advocates Arvind Lakhawat, Nimeet Sharma, and Jalpa Shah from MZM Legal LLP represented NSEL in the case.
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TAGS: Mumbai court Economic Offences Wing (EOW) Mumbai Police Ramesh Abhishek Chairman Forward Markets Commission (FMC) National Spot Exchange Limited (NSEL) payment default crisis special court Maharashtra Protection of Interest of Depositors (MPID) Act investigation suspicious acts and omissions prejudice harm prosecution criminal liability special judge further investigation adverse opinion impartial investigation report investor complaint FIR chargesheets jurisdiction malafide proposal Ministry of Corporate Affairs amalgamation Supreme Court advocates MZM Legal LLP.
