The Enforcement Directorate today arrested Financial Technologies (FTIL) founder Jignesh Shah in connection with its probe into the Rs 5,600-crore National Spot Exchange Limited (NSEL) money laundering scam under the provisions of the Prevention of Money Laundering Act (PMLA).
The scam came to light in August 2013, when Shah’s NSEL faced a payment crisis. By late July, nearly 18,000 investors had allegedly lost millions due to financial irregularities.
Shah has been arrested for non-cooperation with investigative agencies in relation to the scam.
He will be produced in a Prevention of money Laundering Act, court on Wednesday and the agency will seek his custody in the court, according to Enforcement Directorate officials.