Affidavit filed before Bombay High Court contesting trial court decision in NSEL scam case

economictimes.indiatimes.com:

trial court decision to make certain directors and promoters of three brokerage entities as accused in the Rs 5,600 crore National Spot Exchange Scam (NSEL). The Economic Offences Wing (EOW) of the Mumbai police in its plea contended that the Maharashtra Protection of Interest of Depositors (MPID) court’s order was “...arbitrary, erroneous and de hors (without) the principles of criminal law” and should be set aside.

Earlier in May, special judge A S Sayyad of the MPID court, hearing appeals by investor Arvind Bahl said process should be issued against Nirmal Jain, director of India Infoline Commodities Ltd; Preeti Gupta and Roopkishore Bhootra, directors of Anand Rathi Commodities Ltd, Shiney Geoge, director and promoter of Geojit Comtrade Ltd; and Manish Gupta, director of Geojit Comtrade Ltd. Thereby making them face charges under the Indian Penal Code and the MPID Act.

The EOW has contended that in the last ten years they have filed 11 chargesheets in the case against 220 accused who are companies, its concerned directors, employees, individuals etc and those who have been left out were for the want of evidence. They further argued that merely being signatory or owning shares does not prove criminal charges, “ as there is no mens rea or common intention for conspiracy”.

“The trial court has failed to note that a person in charge or responsible for the management of the conduct of affairs of a company means someone who is generally in charge of and in control of the overall day to day affairs of a company. Simpliciter being a director / promoter will not be enough to fasten any liability, especially under the MPID Act,” the plea reviewed by ET reads.