Why Target 63 Moons Management For NSEL Payment Default?

The then management of NSEL, which had the privilege of full functional autonomy, was saying as late as August 2013 that the commodities existed in the warehouses. The management at that time was the sole point of contact with FMC or DCA. The Board of NSEL never had any direct contact with the FMC or the DCA as also the latter has never approached or written to the Board on any concern that they might be having on the operations of the exchange.

Even the show cause notice issued to NSEL was addressed to the then Managing Director and CEO and the Board was never informed of the same. Neither the DCA nor FMC nor the Broking firms nor the management ever raised any red flag to the Board that could have alerted them to take any preventive action.

It is unfair to hold the Board of NSEL responsible for the crisis when they had no role to play in it.

Reference: http://www.nationalspotexchange.com/Truth_About_NSEL.htm

For more information check 63 Moons.

Read More

Is It Right To Punish 63 Moons For Nsel Defaulters’ Crime – Is Government Blindfolded?

NSEL case is a direct reflection of the inefficiency and partiality that prevails in our system. This case has been making headlines since 2013, but for all the wrong reasons as the real culprits are still at large.

With various developments that this case has witnessed, the recent verdict of the court has left a major chunk of shareholders unsettled and baffled. A merger order between the two private entities has been served on the table, which is indigestible for the 63,000 shareholders of founder 63 moons, Jignesh Shah. who will be forced to pay Rs 5600 crore for the defaulters of NSEL, through no fault of their own.

The “subtle” attempt to tamper the cover of corporate jurisprudence is unjustifiable. The merger is an example of a crafty ruse that speaks out louder on a global level that Indian markets are the worst arena for investment. Having a tarnished image as infertile investment market when Make in India is at peak might prove a huge loss.

But more than this, letting the defaulters continue their business as usual and in the meantime, punishing 63 moons for their sins is something that can only be witnessed when the Government is blindsided by one version of the story. I think it is time now for the government to change its perspective and take necessary actions!

Read More

Illegal Arrest of Jignesh Shah – Article 20 of the Indian Constitution

The Enforcement Directorate had arrested Mr. Jignesh Shah on 12th July 2016 under Article 20 of the Indian Constitution. The arrest is in violation of Article 20(3) of the Constitution of India.

• The Article states that no person accused of an offense shall be compelled to be a witness against himself. In any criminal investigation, interrogation of the suspects and accused plays a vital role in extracting the truth from them.
  
• From time immemorial several methods, most of which were based on some form of torture have been used by the investigating agencies to elicit information from the accused and the suspects. The privilege under clause (3) is confined only to an accused i.e. a person against whom a formal accusation relating to the commission of an offense has been leveled which is in the normal course may result in the prosecution.
  
• A person against whom a first information report has been recorded by the police and investigation has been ordered by the Magistrate can claim the benefit of the protection.

For more information check 63 Moons Reviews.

Read More

Illegal Arrest – Section 19 Of PMLA Act 2002

The Enforcement Directorate had arrested Jignesh Shah on 12th July, 2016 under Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA).

• The arrest is illegal and bypasses the process of law and court.
• The court had exempted Mr. Jignesh Shah from personal appearance on 7th July 2016. He was directed to appear on 18th July 2016.
• Mr. Jignesh Shah was called for interrogation on 12th July 2016. He was asked to stay back and eventually informed he would be arrested.
• Mr. Jignesh Shah was arrested on 12th July 2016 much before the next scheduled hearing of July 18.
• What was more surprising was the fact that charges presented by the ED were already there in the first charge sheet filed in the court. Do you arrest again to file a supplementary charge sheet?
• Post cognizance stage, any person already charged under sections 3 and 4 of the PMLA Act (As Mr. Jignesh Shah is), cannot be arrested except if the court issues a warrant.
• A person is arrested under Section 19 of PMLA when there are sufficient and reasonable grounds to believe he is guilty.
• The law of the nation does not permit an arrest of any accused after a complaint is filed against him in the court since the court is directly seized of the matter.
• Mr. Jignesh Shah had been earlier arrested in the NSEL case and later granted bail. The investigation was over and the facts which may have come to light are not new.
• Mr. Jignesh Shah had spent more than 100 days in custody and was granted bail by the High Court.

For more information check 63 Moons Reviews.

Read More