NSEL Case: A Result Of Malfeasance?

The infamous NSEL case, in which the founder of Financial Technologies (India) Limited, Jignesh Shah, is allegedly involved, may have a different side to it than what is being projected. National Spot Exchange Limited (NSEL) was the first electronic commodity spot exchange in India, established to craft a “single market” for both manufactured and agricultural products across the country. It was one of the most successful initiatives of the business tycoon that commenced in 2005 and was engaged in its manoeuvres till 2013. On 12 July, 2013, NSEL was barred from signing any new contract that ultimately led to its shutdown.

A payment default of Rs 5400 crore had taken place at NSEL. Subsequently, many brokers, defaulters, investors and managerial executives were under the radar of suspicion of the probe agencies. Among suspects, the founder of FTIL, Jignesh Shah, was named as well. Even though no concrete evidence was found, he was targeted repeatedly by the authorities. Shah visited the police station multiple times to help them track down the money but nearly after 21 times, Shah was suddenly summoned at the police station and detained on the grounds of non-cooperation.

Many argue that Shah was never involved in the NSEL case. He was wrongly accused and his alleged involvement indicates a conspiracy weaved against him. Since the beginning of his career, Shah faced multiple obstacles in his maneuvers of developing the Indian FinTech Industry and this was the final blow to decimate his empire.

Jignesh Shah’s out-of-the-box thinking and ground-breaking strategies have created millions of jobs in the Indian sectors and democratized the previously monopolistic market. He offered employment opportunities that were of high standards and environment-friendly. Further, his exchanges like Singapore Mercantile Exchange (SMX), Dubai Gold and Commodities Exchange (DGCX) and Bourse Africa Limited (erstwhile Global Board of Trade) crafted new opportunities for India’s development and opened up new international trading routes. He established new-generation markets and segments that were people-centric and had a comprehensive market structure and fabricated a Public-Private Partnership (PPP) model to build world-class financial institutions and modern IP-centric financial markets to extend the reach of India. The czar of commodity exchanges wanted to empower the people of India and develop the nation so that a new image of India is perceived globally.

The unprecedented ideologies of Jignesh Shah brought in a revolution in the Indian FinTech sector. However, the same vision of a developed India was not shared by all. His strategies took away the monopoly of the market that turned the people in power against him. Over the years, he has been a victim to many prejudices and the NSEL case is replete with too many unexplored corners. Several scenarios like the meeting between the EOW boss Rajvardhan Sinha and a lieutenant of Dr. K. P. Krishnan right before Shah’s arrest bring the authenticity of the case into question.  

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