New Delhi: The Central Bureau of Investigation today raided the headquarters of PEC Ltd and the residences of some officials of the state-owned trading house in connection with the 55-bln-rupee payment default by National Spot Exchange Ltd, a government official said.
Raids were also carried out at the offices of seven brokers allegedly involved in paired contracts in PEC transactions on National Spot Exchange, and at the bourse’s Mumbai office, another official close to the development said.
The raids were in connection with the ongoing court battle between state-owned MMTC Ltd and the now defunct bourse on alleged irregularities in investments. In September, MMTC had filed a case against National Spot Exchange to recover 2.28 bln rupees of outstanding receivables from the bourse.
MMTC reported a net loss of 87 mln rupees in Oct-Dec as against a profit of 288 mln rupees in the same period the previous year, as it could not recover the outstanding from the National Spot Exchange due to the pending case in Bombay High Court. In a notice to the stock exchanges, MMTC said it had an exposure of 2.13 bln rupees as on Dec 31 on account of farm trade done on National Spot Exchange.
Of this amount, 12.3 mln rupees has been realised. National Spot Exchange owes state-owned PEC over 1.3 bln rupees. CBI has charged the tainted bourse for floating fraudulent products in the form of paired contracts that led to losses amounting to 1.2 bln rupees to the state-owned companies.
Media reports suggested that the CBI has been questioning Financial Technologies’ group promoter Jignesh Shah. The exchange is being probed by multiple investigative agencies in respect of the default scam that was unearthed on Jul 31, when the bourse discontinued trading in its paired contracts.