ED attaches properties worth Rs414 crore

The accused committed criminal breach of trust against approximately 13,000 investors, who lost Rs5,600 crore.

The Enforcement Directorate (ED) on Friday attached properties worth Rs414 crore in the National Stock Exchange Limited (NSEL) case.

ED officials said they attached the properties of Lakshmi Energy & Foods Limited. “NSEL funds were invested in this firm through bank loan repayments and either raw material or working capital utilisation or expansion. The funds were projected as untainted,” said an ED officer.

The NSEL case involves alleged fraud in the futures trade of commodities, as well as alleged misappropriation and embezzlement of funds.

“It was alleged that the accused hatched a criminal conspiracy to defraud investors, induced them to trade on the NSEL’S platform, created forged documents such as bogus warehouse receipts, falsified the accounts and thus committed criminal breach of trust against approximately 13,000 investors, who lost Rs5,600 crore,” said the officer.

Following the uncertainty of returns and falling trade volumes, the investors began complaining to the Economic Offences Wing in mid-august, 2013.

A case was registered with the MRA Marg police station on September 30, 2013. The investigation was handed over to the EOW.