The Serious Fraud Investigation Office (SFIO) has filed a petition in the National Company Law Tribunal, Mumbai, for winding up the Indian Bullion Market Association (IBMA) and Juggernaut Projects Ltd., which are being probed in connection with the stated Rs 5,600 crore National Spot Exchange (NSEL) scam. IBMA is a subsidiary of NSEL and step-down subsidiary of 63 moons, NSEL’s parent company. JPL is one of the exchange’s defaulters.
The petition, filed by Ethos Legal Alliance, says IBMA and JPL should be restrained from selling assets and property pending disposal of the petition and seeks appointment of a provisional liquidator.
The SFIO in a report last year had alleged winding-up petitions against 17 defaulter companies. The ministry of corporate affairs upheld its recommendation in a January 15 order and authorized SFIO to file the petitions.
As per the petition filed in the NCLT, which was reviewed by ET, the SFIO said IBMA was used by NSEL to generate fictitious documents to support illegal trading on the exchange by way of paired trader contracts to cover up for the fact that no physical delivery was involved.
“IBMA and NSEL were working in concert in the manipulation of the market,” stated the petition.