Bombay High Court tells Centre, FMC to inform whether they can regulate NSEL

MUMBAI: The Bombay High Court today asked the Union Ministry of Consumer Affairs and commodities regulator Forward Markets Commission (FMC) to inform it if they had powers to regulate the scam-hit National Spot Exchange Ltd ( NSEL), by Friday.

The direction was given by a bench headed by Justice S F Vajifdar while hearing petitions filed by a group of investors, including a petition filed by Investors' Grievances Forum President Kirit Somaiya, urging a probe by CBI or any other agency into the Rs 5600-crore scam.

The PIL filed by Somaiya, a former BJP MP, sought a direction for a probe by CBI or any other agency into the alleged refusal by NSEL to pay dues to 17,000 small investors, resulting in the scam.

Other PILs filed by investors alleged malpractices by the bourse in settlement procedures, saying preference was given to bullion deals while ignoring other transactions.

During the last hearing of the case, the court had directed all respondents, including Central Board of Direct Taxes, NSEL and its promoter Jignesh Shah to file their replies.

The court was told that the Mumbai Police Economic Offences Wing is investigating the scam.