In what is a setback for the Enforcement Directorate (ED), the special Prevention of Money Laundering Act (PMLA) court on Monday rejected its plea to extend the police custody of Jignesh Shah, an accu
In what is a setback for the Enforcement Directorate (ED), the special Prevention of Money Laundering Act (PMLA) court on Monday rejected its plea to extend the police custody of Jignesh Shah, an accused in the NSEL money-laundering case, for another four days and remanded Shah to judicial custody. Soon after he was remanded to judicial custody, Shah filed his bail application, which is likely to be heard on July 26.
ED counsel Hiten Venegaonkar argued before the special judge P.R. Bhavake that the investigating officers are in the process of filing a fresh complaint and needed further time to interrogate Shah and, hence, his custody should be extended for four more days.
It was submitted to the court that evidence of a money trail between FTIL and its three units — NSEL, National Bulk Handling Corporation (NBHC) and the Indian Bullion Market Association — were found during investigations.
Two instances of fund transfers to the tune of Rs 200 crore and Rs 62.9 crore were found between FTIL and NBHC just days before a settlement crisis hit NSEL. Trading on the exchange was stopped on July 31, which eventually led to the settlement crisis of Rs 5,574 crore. A transfer of Rs 74.25 crore was also detected between FTIL and NBHC.
Shah’s lawyer Abad Ponda, however, opposed the remand application, saying Shah had earlier been arrested in the same case and was behind bars for more than 100 days. He told the court that the agency cannot seek his custody in the same complaint for a second time. After hearing the arguments, the judge remanded Shah to judicial custody.