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Commentary

NSEL: Mgmt Arrests, E&Y “Checked” Warehouses, Sinha’s Wife Traded on MCX

In the NSEL saga, the endgame is starting to play out. Not to the liking of the top officials of the infamous spot exchange, of course. Two of them, Amit Mukherjee and Jay Bahukhandi are now under the arrest of the Economic Offenses Wing.

The Mumbai Police have also arrested NSEL’s ex-CEO Anjani Sinha. It turns out that Sinha’s wife, Shalini Sinha, owns a company called SNP Designs, which had leveraged trades of Rs. 40,000 cr. on MCX since April, with no margins collected from it (and with heavy losses). And then, there’s a further link between SNP and Mohan India (one of the biggest defaulters in the mess).

Further, the Economic Offenses Wing proposes to attach properties of promoters, directors and defaulters in the Rs. 5,600 cr. scam.

Ernst and Young, a big name auditor, had supposedly checked NSEL warehouses and given them an okay of sorts. This kind of thing is now unsurprising; it just means that you should not trust anyone, even if they are a big name auditor.

Overall, things are getting hotter. But there’s no sign of an arrest of Jignesh Shah, or the stopping of activities of FT in MCX.