MOST URGENT Sub: National Spot Exchange Limited – Unbelievable story. Most respected Sir, I am a senior citizen of 65 years, in serious trouble, after having worked and saved all my life, by investing my hard earned money, approximately Rs. 46 lakhs in products sold by the distributors of National Spot Exchange Limited(NSEL) of which , by now ,you are totally aware and will also learn much more when the High Powered Committee of Secretaries of various Ministries, present their report to you. This came as a bolt from the blue and I can only see darkness for times to come since I have no money left even to meet my daily needs, if The Hon’ble Finance Minister does not take things into his own hands with all the resources of the Government of India at his command, and his own belief in honesty, integrety and fair play , to bring the people responsible for this fraud to book and institute necessary actions to bring relief to many sufferers like me by getting them their hard earned tax paid money back. As things emerged with the media, the investigative Authorities, the might of the various Administrative wings of the Government placed under your command, I have read the situation as follows: 1. With the issuance of the license to Mr. Jignesh Shah to operate in commodities, inspite of the advice of Mr. Bhave, then Chief of SEBI, advising the Government by questioning the credentials of Mr. Jignesh Shah handling public money, and appointment by Mr. Jignesh Shah of Mr. Anjani Sinha as Managing Director/CEO of NSEL, knowing fully well Mr. Sinha’s past involvement in share manipulation and badla trading in erstwhile regional bourses such as the Ahmedabad Stock Exchange and the Magdh Stock Exchange, the seed for deliberate fraud to be perpetrated on the unsuspecting investors/farmers was sown. 2. The foundation of this fraud was further strengthened by the appointment of Mr. Guru as Chairman whose son-in-law of N.K. Proteins is now the biggest defaulter with approximately over Rs. 900 crores outstanding for payment. 3. This Exchange on its Website proclaims that this is an electronically controlled, transparent, most efficient method of trading between Buyers and Sellers without the involvement of any intermediary. What an untruth!!! Little did I realize that the Collector of our funds (NSEL) through its MD/CEO Mr Anjani Sinha and with the total connivance and full knowledge of Mr. Jignesh Shah was using this platform to do private funding,without transacting any commodity trade, depending on forged and fake warehouse receipts, which is adequately borne out by the reveleations that ficticious parties with paid up capitals of Rs. 1 lakh to 10 lakhs established a few months ago were loaned amounts ranging from Rs. 25 crores to 900 crores of investors money with NSEL, who have further diverted all these funds into their own private businesses/real estates/other unknown transactions such that today neither the commodities are available nor is the money available.This was done against the bye laws of NSEL for spot trades on T+25 basis upto July 2012 and continued thereafter upto July2013 on T+11 basis inspite of repeated warnings of Forward market Commission (FMC).When FMC warned NSEL not to trade beyond T+2 the whole can of worms opened as their were furious withdrawls by more informed investors/guiding brokers and NSEL did not have funds to repay,that trading was stopped on July31,2013 leaving me and many others in the stink. 4. Can one believe that the total authority exercised, without any accountability for disbursement of such large amounts, without any collateral in the form of commodities or bank guarantees was possible for Mr. Anjani Sinha to achieve, with such impunity, without the complete connivance/complicity/ approval of the entire Board of NSEL headed by Mr. Jignesh Shah amongst others. It is quite obvious that it is Mr. Jignesh Shah who is the master mind/kingpin in this entire fraud on 15000 unsuspecting investors and amount involved of approximately Rs. 5500 crores. What more proof is needed than the default in the first four agreed instalment payments in consultation with FMC that only approximately Rs. 150 crores, against Rs. 174 crores x 4 has been realized till today. The deficit in four weeks is over Rs. 600 crores and from the Warehouse surveys done by SGS/Grant and Thornton there is no possibility of realisations of more than 6 to 7 crores per week by the five parties who so far have paid regularly as per the agreement reached with FMC/NSEL in their meeting in Mumbai on 4th August, 2013.After 4 weeks these 5 parties would have paid their complete dues and thereafter no investor can hope to get a penny unless the following actions are taken:a) While criminal proceedings are going on in court the assets,bank accounts,cash,moveable posessions and any other items of monetary value of all Board Members of NSEL are seized and liquidated for deposit into NSEL escrow account and affected investors are paid to the extent possible. b) Declare Mr Jignesh Shah,as not FIT AND PROPER to be on the board of any exchange. c) liquidate his holdings in FTIL and stake in MCX and pay balance to investors to make him realize where and how the shoe pinches. 5. Mr. Jignesh Shah, it appears now, was totally successful in manipulating our Hon,ble ex Finance Minister through our ex Finance Secretary Mr. Ashok Jha, to gain license for running this fraud exchange(NSEL) without??? any Regulatory control of the Ministry of Commerce through FMC so that this fund collection exchange could really be used as a financing platform for vested interests in the vested circle of and with the full knowledge and blessings of Mr. Jignesh Shah. It is also well known that the Ex-Finance Secretary Mr Ashok Jha was,allegedly, as a token of gratification, inducted as a Director on the Board of Mr. Jignesh Shah run MCX. 6. Our relations are working overseas, in U.K, North America and Australia. We are receiving anxious enquiries from them regarding the risks of investing in any Government run scheme/exchange/securities fearing that the Government is not interested in protecting the interest of its Nationals whether in India or overseas. The enquiries are also coming from their American and Australian colleagues regarding their nervousness in investing even in real estate in India as they fear that their investments can go bad. NSEL defaults have been reported in many foreign countries such as Singapore, Hongkong, Tokyo, Dubai besides the above two countries named. I am sure you will appreciate and be fully aware of the fall out effects on the other Exchanges and the Foreign investments which are most important for the betterment of Indian infrastructure. Sir, I humbly request you, knowing your determination and your integrity, to take strong action against Mr Jignesh Shah by declaring him not ‘FIT AND PROPER” seize his assets of FTIL and MCX, pay off NSEL investors and if any thing is recovered beyond his liabilities arising out of NSEL the same can be paid back to him. It is also necessary that Mr. Jignesh Shah, his Directors on the Boaqrd of NSEL, Mr. Anjani Sinha be all charged with criminal conspiracy to defraud investors of their money by misusing the trust and the permission accorded to him by the Government of India to operate a Commodity Exchange, where they collectively violated all conditions of the license, inspite of various warnings by Gazette notifications, for his own individual and private machinations. Sir, the General Elections are due in May, 2014 and as you are aware there are already many unfortunate scams that are under investigation, where you on a daily basis are facing awkward questions because of the wrong actions of others, it would be wonderful if strict action on NSEL settlement is taken. This will make people see you in the real light and you may become an instrument in helping the Indian Economy and the formation of UPA III. I sincerely pray to you not only to help me but many others like me who are almost destroyed financially and can only look up to you to lead this charge of settling the NSEL issue. With respect and regards, RENU AHUJA
Posted on: Sat, 14 Sep 2013 08:40:21 +0000
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