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Mumbai: The Enforcement Directorate (ED) has filed a supplementary chargesheet against 54 accused, including 19 broking firms and their directors, in the Rs 5,574 crore National Spot Exchange Ltd (NSEL) money laundering case.
The accused allegedly worked with NSEL officials to alter trading records and had thus received Rs 35 crore in brokerage fees which has been attached. This is the seventh chargesheet submitted by ED in this investigation. Previously, the ED had named 94 accused in the case and attached properties worth Rs 3,289 crore.
On Wednesday, the ED issued a press release that said, “The ED investigation, in respect of broking companies, revealed that after getting registered with NSEL, they misled their clients by providing false assurances about the exchange and promoting illegal pair trade contracts that were not allowed. In collusion with broking companies, NSEL established a system that bypassed the collection of warehouse receipts or physical commodities for their clients, knowing they were facilitating trades in such a manner.”
The ED indicated that the broking companies joined in unlawful activities with NSEL management to attract investors with promises of substantial returns, subsequently deceiving them through fraudulent schemes.
The earned brokerage was subsequently used in business operations, resulting in layering and integration of Proceeds of Crime, presenting them as legitimate funds. The NSEL platform operated as an online commodity exchange where more than 13,000 people invested through brokerage firms.
Mumbai: The Enforcement Directorate (ED) has filed a supplementary chargesheet against 54 accused, including 19 broking firms and their directors, in the Rs 5,574 crore National Spot Exchange Ltd (NSEL) money laundering case.
The accused allegedly worked with NSEL officials to alter trading records and had thus received Rs 35 crore in brokerage fees which has been attached. This is the seventh chargesheet submitted by ED in this investigation. Previously, the ED had named 94 accused in the case and attached properties worth Rs 3,289 crore.
On Wednesday, the ED issued a press release that said, “The ED investigation, in respect of broking companies, revealed that after getting registered with NSEL, they misled their clients by providing false assurances about the exchange and promoting illegal pair trade contracts that were not allowed. In collusion with broking companies, NSEL established a system that bypassed the collection of warehouse receipts or physical commodities for their clients, knowing they were facilitating trades in such a manner.”
The ED indicated that the broking companies joined in unlawful activities with NSEL management to attract investors with promises of substantial returns, subsequently deceiving them through fraudulent schemes.
The earned brokerage was subsequently used in business operations, resulting in layering and integration of Proceeds of Crime, presenting them as legitimate funds. The NSEL platform operated as an online commodity exchange where more than 13,000 people invested through brokerage firms.
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