- (1.) First petitioner is the company incorporated under the provisions of the Companies Act, 1956 and second petitioner is the Managing Director of first petitioner company. The National Spot Exchange Limited (NSEL) (6th respondent) is also a company registered under the Companies Act, 1956. The said company is promoted by another company, by name, Financial Technologies (India) Limited (FTIL). First petitioner is a trading-cum-clearing member of 6th respondent.
(2.) Pankaj Ramnaresh Saraf, resident of Mumbai is a Director of M/s.Vostok Far East Securities Private Limited, a company registered under the Companies Act, 1956, with registered office in Mumbai. The company is in business of investments, trading and financing. Mr. Pankaj lodged complaint dated 30.09.2013 alleging large scale financial irregularities, misrepresentation and misappropriation of huge funds belonging to complainant and similarly situated investors by National Spot Exchange Limited (NSEL). Board of Directors of FTIL and NSEL and 25 borrowing companies/trading members along with their Directors, are alleged as persons responsible for causing huge financial loss to the complainant. The complainant claimed that he had surplus funds and, therefore, invested in NSEL. His broker was informed that NSEL has defaulted in making payments due to him as per the settlement schedule issued. He alleged that all this happened due to fraudulent activities of Board of Directors of NSEL as well as trading members.
(3.) The complaint lodged by Mr. Pankaj was registered initially as Crime No.216 of 2013 and subsequently re-numbered as Crime No.89 of 2013 under Sections 120(B), 409, 465, 467, 468, 571, 474 and 477(A) of the Indian Penal Code. The Economic Offences Wing of CBCID, Mumbai, State of Maharastra, is also investigating into the allegations leveled by the complainant as per the provisions of Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 (Act, 1999). As part of the investigation, the fixed assets of the petitioner company was seized and information regarding the operation of the bank accounts of the first petitioner company in State Bank of India (two branches) and ING Vysya Bank Limited (one branch) were called and pending further investigation, the banks were directed to freeze the accounts of the 1st petitioner. An order of restraint is passed by Special Sessions Court, Mumbai, which is the designated Court under Act, 1999. Two out of three bank accounts of the first petitioner company are in the branches located in State of Andhra Pradesh, the warehouse of the first petitioner company is located in Srikakulam District and the Head Office of the company is located in Hyderabad.;