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After holding investigations for about two weeks, the Economic Offences Wing of the Mumbai Police has decided to close the case against the National Commodity and Derivatives Exchange Ltd (NCDEX) in the controversy over delivery of pepper from warehouses in Kerala.
Chief of Economic Offences Wing (EOW) Rajvardhan told mediapersons on Monday that investigations have not revealed any criminality in the transactions. There could have been some questionable transactions in the case but no crime has been committed, he said.
When questioned about the time-frame for closing the case, Rajvardhan said that a fixed time frame has not been decided but once the complainants provide all documents, the case will be closed.
On November 19, NCDEX had said that the complaint was filed by Kalimirch Vyapari Association comprising several entities that traded in the pepper futures contracts, on the exchange platform. The KVA is representing the interest of a cartel comprising of Betul Oil Ltd and related entities, against whom, investigation for market manipulation is in progress, the statement had said.
The controversy arose in December last when traders alleged that the quality of pepper delivered had presence of mineral oil. Commodity markets regulator Forward Markets Commission looked into the issue and also deputed officials, including one who has served in the Spices Board. The officials found the quality of pepper in tune with contract specifications.
According to Forward Markets Commission officials, the problem arose since a few players had bought pepper expecting prices to go up. When they did not rise, the players complained about the quality of pepper that was being delivered to them to escape from their commitments.
NSEL crisis
In a separate development, the EOW has decided to investigate the books of accounts of Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) in connection with the Rs 5,575-crore scam at the National Spot Exchange Ltd (NSEL). FTIL holds a 99.99 per cent stake in NSEL.
Rajvardhan said that the EOW would be looking into the books of accounts of FTIL since its inception. The activities of NSEL board members have been investigated and the locations of mobile towers have been mapped, which show that members of NSEL since 2011 had signed the minutes of NSEL board meetings despite being absent from these meetings, he said.
rahul.wadke@thehindu.co.in
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