Jignesh Shah moves court to quash CBI probe against him

Jignesh Shah, the promoter of 63 moons (formerly Financial Technologies), has filed a petition in the Bombay High Court against the CBI seeking to quash the FIR filed by the central agency and to declare the searches conducted by it as illegal.

In March, the CBI had filed a first information report against 63 moons, its former Chairman Jignesh Shah, four former chairmen of the Forward Markets Commission (FMC) and six others for irregularities in the launch of Multi-Commodity Exchange (MCX). Prior to being merged with SEBI, FMC was the commodities market regulator.

The CBI had accused Shah of helping MCX in getting the status of nationwide commodity exchange in 2003, even though it did not fulfil the stipulated criteria.

“The Court had asked the CBI to respond to our petition and would decide on the hearing after it resumes from vacation next month. The allegation made by CBI are frivolous and has no basis whatsoever,” Jignesh Shah, now the mentor at 63 moons, said at a press conference here on Thursday.

Shah has been fighting a web of court cases following the ₹5,600-crore settlement default at the National Spot Exchange, promoted by Financial Technologies.

RJ Kochar, former judge of the Bombay High Court and independent director of 63 moons, said four former chairmen of FMC were charged of conspiracy and corruption in the CBI’s FIR and their houses were searched, long after their retirement from services.

“The enforcement agencies have assumed the role of final arbiter in government policies of reforms. If they continue to put every action of the regulator and policy-makers under microscope for criminality long after their retirement, the economy is doomed to have policy, governance and development paralysis,” he said.

The Bombay High Court recently allowed the company to withdraw money for paying salary from its current account which was frozen by the Economic Offences Wing (EOW).

S Rajendran, Managing Director and Chief Executive Officer, 63 moons, said the company had requested EOW to freeze the current account after transfer of ₹400 crore received from redemption of Basel-II bonds into fixed deposit, but it did not oblige. Now, he said the money is available almost free for the banks and the company is losing interest of ₹2.5 crore a month. By the time the court reopens after vacation and decides on the case, the company would have lost quite a sum, he said.