The Rs 5,600-crore NSEl scam could have been averted had its top management and other functionaries “performed their duties and exercised due diligence” to check the dubious activities of defaulting firms which have been alleged to have cheated numerous investors, investigation by Enforcement Directorate (ED) has revealed.
The central probe agency which registered a criminal FIR in this case in October last year to probe money laundering instances scanned the business transactions and financial connections of a majority of the defaulting firms and then recorded in its charge sheet that trading at the National Spot Exchange limited (NSEl) was being conducted “only on paper and no actual commodity was procured or sold”.
“If NSEl and the top management and others had performed their duties and exercised due diligence this fraud of Rs 5,600 crore would not have happened. It shows failure on the part of statutory bodies and the others,” the ED said in its charge sheet, accessed by PTI.