Friday 16 September 2016

Brokers modified UCC in NSEL crisis

NSEL crisis surfaced in the year of 2013 and then brokers connection in misleading clients was raised by few clients such as Moti Dadlani ,Rita Vadodaria, and Achal Agarwal. On 18th March 2015, Rita Vadodaria, client of Anand Rathi Commodities registered a fresh complaint against Anand Rathi Commodities.

Mr. Dadlani filed a suit against his broker and has supposed that his broker has defrauded money under his name. The broker dishonestly; used Mr. Dadlani account and PAN details to invest huge amounts on NSEL platform.

ED said that they are investigating the broker’s role in the entire case and asked them to furnish the details of funding of clients through non-banking financial companies and their unexplained write-offs as per media reports. The Investigating agencies are questioning about the illegal changes made on the NSEL platform.  NSEL suspected in their charge sheet that the brokers were involved in miss-selling products of NSEL by deceiving their clients on the NSEL platform were found to be different from those on brokers’ records.

Almost two years ago, three officials of leading brokerage firms Anand Rathi Financial Services, Geofin Comtrade and India Infoline were arrested by the economic offences wing of Mumbai police, and were later released on bail. The ED registered a criminal case under the PMLA Act in 2013, to probe the case. So far, it has made an attachment of Rs 800 crore in the case. A additional charge sheet could be expected.


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