The commodity market regulator Forward Market Commission has charged Mr Kailash Gupta, the founder and Vice-Chairman of National Multi Commodity Exchange (NMCE), for mismanagement and favouring his family members by abusing his position in the exchange.

“Based on the detailed scrutiny and analysis of the various documents gathered and statements recorded in the course of the enquiry, it is established that Kailash Gupta, the then MD has in complete breach of his fiduciary responsibility to the exchange, systematically defrauded it, misused and misappropriated its property and committed a series of crimes under various laws including FCRA (Forward Contract Regulation Act), IPC (Indian Penal Code), FEMA (Foreign Exchange Management Act) for benefiting himself, his family and his family owned and/or family controlled firms, namely, Arrow Total Solutions Pvt Ltd, Arrow Total Solutions LLC, Neptune Overseas and Kushal Enterprises,” said the 96-page order passed by Mr B.C. Khatua, Chairman, FMC, Mr Ramesh Abhishek, Member, FMC and Mr D.S. Kolamkar, Member FMC.

Therefore, they are all severally and jointly liable not only to return the embezzled, misappropriated and misused funds of the NMCE but also liable to be prosecuted for the offences committed, it said.

Mr Kailash Gupta, Vice-Chairman, NMCE said, the FMC has clearly mentioned that its order is subject to the outcome of High Court judgement in an application filed against FMC and six others in this matter.

“I would not like to comment any further on the issue as it is sub judies,” he added.

FMC has directed the National Multi-Commodity Exchange (NMCE) to immediately file criminal case against Mr Gupta who has all along been in effective control of ATSPL for perpetrating a fraud on NMCE and claiming payments for non-existent software development and software services, thereby causing it a wrongful loss of at least Rs 28.80 crore. The four transferee benami shareholders of ATSPL may be made the co-accused, the order said.

The NMCE was directed to place before the Board the evidence regarding the irregularities in the allotment of NMCE shares to NOL and impugned 2,932,280 shares presently held by NOL.

The exchange has been directed to immediately file an FIR, if not already filed, against Ms. Poonam Gupta nee Verma, her husband Mr Kaushik Gaurav Verma, the then Exchange employee Mr Suneil Jain for making systematic attempt to sabotage the IT and software systems of the exchange.

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