NSEL crisis: No warehouse sealed by Mumbai police, says NBHC

The economic offences wing (EOW) of Mumbai police has not sealed any warehouse of National Bulk Handling Corporation Ltd's (NBHC), the latter, which is a part of the Financial Technologies Group, said in a statement on Thursday.

The Financial Technologies group also controls beleaguered bourse National Spot Exchange Ltd (NSEL), which is facing a crisis of payment worth Rs 5,600 crore.

"Officials of EOW have not sealed any of the warehouses of NBHC and all commercial activities are progressing as normal and none of the other depositors have been restricted by any authority to carry out their commercial activities," NBHC said in a statement on Thursday, reacting to media reports.

EOW-Mumbai officials visited three warehouses on Monday and Tuesday to carry out investigations pertaining to the stocks of NSEL and Indian Bullion Market Association (IBMA), NHBC said.

The investigation is specifically restricted to their stocks only. Moreover, the officials of EOW have seized the stocks of NSEL/ IBMA only, which have been handed over by the authorities to NBHC as its custodian, till further instructions from them," it said in a release.

"We further clarify that all our warehouses are working without any restrictions, including the two warehouses i.e. at Ganj Basoda and Vidisha. The warehouse at Delhi -- Sunil Dutt Warehouse -- is under lease to IBMA and has total capacity of approx 138.6 MT. The stocks belong to IBMA and this warehouse has been given to NBHC for warehouse management services (WMS) only," NBHC noted.

The company has under its management over 1,140 warehouses across the country.

'Crucial evidence'

The EOW has almost completed raids at various locations across the country and claims to have collected "substantial evidence". The police teams, which began raiding as many as 193 locations on Monday, including housing premises of NSEL top brass, brokers and defaulters, have completed their processes at 187 places, a senior EOW official told PTI on Thursday.

"We have collected crucial and substantial evidence in the case," he said, without giving more details.

"Our raids are underway at the remaining six locations -- two each in Andhra Pradesh and Gujarat, one each in Punjab and Maharashtra. By tonight, we are expected to complete these raids too," the officer said.

As many as 28 warehouses that contained commodities have been sealed, he said.

"About 75 voluminous files, 61 hard disks, six laptops, 25 pen drives, two CPUs and an iPad were among evidence collected so far," he added.

Police on this day also lifted the freeze on an escrow account that was opened for the specific purpose of making payouts to duped investors and brokers.

NSEL has managed to pay only about Rs 150 crore on a weekly basis, out of the total dues of about Rs 5,600 crore. An FIR was filed on Monday by EOW against Shah, Joseph Massey (MD of MCX, another FTIL-promoted firm), other promoters, directors and defaulters charging them with cheating, forgery, breach of trust and criminal conspiracy, among others.

On Tuesday, EOW froze 58 bank accounts, including those of the troubled exchange and the accused, even as CBI started a probe into alleged duping of customers and irregularities at the commodity exchange.