New Delhi: After Jignesh Shah got arrest in connection with the Rs 5,600-crore NSEL scam late Tuesday, a PMLA court on Wednesday sent the former chairman of Financial Technologies to police custody till July 18. The Enforcement Directorate (ED) claimed in the court that Shah had made Rs 76-crore worth bogus deals. The ED arrested Shah on Tuesday under section 19 of Prevention of Money Laundering Act (PMLA).
Mr Shah has been named in the first charge-sheet filed by the ED in the case last year. ED's lawyer Hiten Venegaonkar argued that new material had come to light indicating that Mr Shah indulged in money laundering. Therefore, ED intended to file a fresh complaint of money laundering for which it needed his custody for eight days, he said. Advocate Abad Ponda, Mr Shah's lawyer, opposed the plea for ED custody saying Mr Shah had been earlier arrested in the NSEL case and later granted bail.
The investigation was over and the facts which may have come to light are not new. Mr Shah had spent more than 100 days in custody and was granted bail by the High Court, Mr Ponda pointed out. However, the ED lawyer said that Mr Shah did not answer several questions during the interrogation and the investigation officer stopped questioning him. For further probe, his custodial interrogation was necessary. Mr Ponda cited a Supreme Court judgement saying that a suspect cannot be compelled to answer questions which may incriminate him/her.