The Mumbai Metropolitan Court has directed the Mumbai police to investigate the complaint filed by MCX and National Spot Exchange investor Ketan Shah alleging siphoning off funds by the promoter and senior management of MCX.

In a two-page order, DB Patange, Additional Chief Metropolitan Magistrate, said perusal of the compliant with support document reveal that the fraud is systematic and pre-meditated in the commodity market of Mumbai.

“I have gone through the complaint and supporting documents. Considering the nature of allegation of criminal breach of trust and gravity of charge levelled against the accused, a thorough investigation should be made to unleash the truth,” he said.

Quoting the Pricewaterhouse Coopers India audit report on MCX, Shah has alleged that the entire board and senior management of MCX have siphoned off ₹900 crore from the exchange and requested the police to investigate the fraud separately.

The court has ordered the police to forward the complaint to MIDC Police Station in Andheri for investigation and submit a report at the earliest.

In response to the court order, FTIL said it has not received the copy of FIR and will deal with it appropriately.

Questioning the legitimacy of the PwC audit report, FTIL quoted Darshan Harshadbhai Patel, the Partner of PwC who was involved in the MCX audit, as saying, “No other third party can place reliance on the report. Any attempt made by any other third party to rely upon the content of the said report lacks evidentiary value and any such reliance would be outside the purview of the stated purpose of the report and thereby grossly unauthorised and hence unlawful.”

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