ED Crackdown On NSEL: Fresh Chargesheet Filed Against 19 Broking Firms Over Money Laundering Concerns

2025-02-05 08:46:20

(MENAFN- Live Mint) The Enforcement Directorate has filed a fresh chargesheet in connection to the National Spot Exchange Limited (NSEL) linked money laundering case, the agency said in a statement on Wednesday.

On January 28, a complaint was filed before a special Prevention of Money Laundering Act (PMLA ) court in Mumbai against 19 broking firms and their directors for allegedly engaging with NSEL officials to "allure" investors to trade on the platform.

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The PMLA special court has taken cognisance of the chargesheet on February 3.

ED has filed six chargesheets against 94 individuals and attached properties worth ₹3,288 crore during the probe earlier, according to PTI report citing the statement.

According to the probe, after getting registered with the NSEL , the broking firms "misled" their clients by providing "false" promises regarding the exchange and promoting "illegal" pairs trade contracts that were prohibited, the agency said.

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In "collusion with" broking companies, NSEL formed a system that "bypassed" the collection of warehouse receipts or physical commodities for their clients.

“The broking companies entered into a criminal conspiracy with the NSEL to allure the investors to trade onto the NSEL platform in promise of hefty returns, thereby cheating the investors through a fraudulent scheme,” ED said.

"The brokerage earned through these illegal means was further utilised in business operations resulting in layering and integration of proceeds of crime and projecting them as untainted funds," it added.

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In 2013, the ED and Economic Offences Wing of the Mumbai Police filed a criminal case under the PMLA to probe the NSEL and others linked with it.

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