proceeds of crime were first channeled to the accounts of M/s Swastik Overseas

Corporation and Mis Manan Agro Pvt Ltd and then payments of Rs. 91.44 . Lakhs and
Rs. 76.20 Lakhs respectively, were made to M/s Prime Zone Developers Pvt Ltd,
towards purchase of the said properties.

O iv) Other Miscellaneous Expenses .and transfers: The balance funds to the tune
of Rs. 11.94 Crores were channeled and utilized towards other miscellaneou's expenses
towards running the firms, warehousing rents and expenses, etc. The proceeds of crime
were also siphoned off by routing it to the individual accounts of Shri Rajesh Mehta, Shri
Rajiv Todi and their family members. The funds were then laundered to avoid its trail

O and to project it as untainted funds.

0
O 6. During the course of investigation, following detailed statements wr re

recorded under Section 50 of Prevention of Money Laundering Act, 2002:

6.1.1 The statement of Shri Anjani Sinha, Managing Director & CEO of NSEL, was
O
recorded on 16.10.2013, wherein, he admitted the contents of his affidavit dated
11.09.2013 and stated that NSEL was a spot exchange organizing delivery based
transactions between various buyers and sellers through an electronic network, which
0 was spread in 17 states across the country; that NSEL has appointed members, who
O execute transactions on behalf of their clients; that NSEL project -was launched on 10th
Februay,205ndltohecmpaywsinortedMay,205;hinJue.
0 2007, it got exemption from Department of Consumer Affairs, Government of India
under Section 27 of Forward Contracts Regulation Act, 1952, for conducting trading in
0
one day duration forward contracts, Thereafter, NSEL commenced members -lip drive in
June, 2008, and in October, 2008, it started actual trading.

tiu
6.1.2 On being asked to furnish the details of the clearing I settlement procedure and
the company's guidelines to the brokers for dealing with the clients, he stated that all
members were required to open designated bank accounts with one of thE designated N

banks listed by the Exchange; that the members had to open two accounts -
C Settlement account, & (2) Client account; that the clearing and settlement sgtern
CD generates bank files for debiting or crediting the settlement accounts of resP .ectiVe'
C , .
members and such files are sent to the bank electronically; that based on such
C
instructions the banks debit / credit respective members settlement accounts; ';that in
the settlement account, members do not have cheque book facilities and so settlement.
CC
account can be used only for (1) transfer or receipt of funds to / from NSEL settlement ,
account; (2) transfer of funds to members' client account.and receipt of funds from arrY:--..!--
account; that the operation of client account is totally in the hands of the member that
he can accept funds from his clients in this account and can issue cheques to his Pnts
CW from this account.
C
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