Former BJP MP Dr Kirit Somaiya on Friday filed a PIL in the Bombay high court alleging misappropriation of `8,000 crore invested by farmers and small investors by the beleaguered National Spot Exchange Limited (NSEL). The PIL alleges failure by the government and regulators in stopping NSEL’s illegal activities.
Dr Somaiya, also the president of Investors’ Grievances Forum told this newspaper, “Money ranging up to `8,000 crore has been stolen by two dozen companies. The government knew about it and conducted a survey in the warehouses where these bogus companies had reportedly stored their commodities. The survey revealed that the warehouses didn’t exist. The money has made its way to the accounts of several politicians.” He also said that the government was protecting Jignesh Shah, who holds maximum stake in NSEL.
The respondents named in the PIL include Union ministry of consumer affairs, food and public distribution, ministry of finance, Forward Market Commission, Central Board of Direct Taxes, the NSEL and Jignesh Shah.
The PIL alleges that NSEL forged documents regarding stocks and liquidity and allowed some of the companies to pledge the same stock with more than one financial institution.
An investor who had invested `60 lakh said, “The government should have taken action earlier when transactions were going on. However, the issue snowballed into a larger one after many bogus companies started dealing with NSEL.”
The BJP leader, in his PIL, has sought a probe by CBI or the Economic Offences Wing of Mumbai police or the Central Vigilance Commission, and demanded action against NSEL, its promoters and 24 companies, which it states have vanished along with the money.