To, The Commissioner of Police Crawford Market Mumbai 400001

Sub: NSEL SCAM AND LAX INVESTIGATION Dear Sir We have been communicating with you for almost last 11 months seeking justice for the investors of NSEL. Slowly we are observing that the investigation by EOW wing of Mumbai police which is the primary investigative agency looking in to this scam has turned in to a cruel joke on 13000 families who have lost Rs 5600 Crores in this heinous scam. Here are some key points which need your urgent attention- Not Enough Action on Jignesh Shah and FTIL group:

FTIL was not mentioned as an accused while booking the FIR though being the promoter of NSEL and having common directors like Jignesh Shah/Joseph Massey with NSEL and Devang Neralla and Shreekant Javalgekar with IBMA (NSEL subsidiary) they as a company should have been number 1 accused (which surprisingly was not the case).

Jignesh Shah and FTIL were allowed to siphon monies abroad in spite of our several representations and warnings. About Rs 850 Crores were siphoned to Mauritius to an FTIL subsidiary FT Group Investments Pvt Ltd from FTIL right under the nose of EOW and other agencies as loans and advances after the NSEL scam. These loans have been now converted in to equity. This was clearly with a view to take these huge sums out of the ambit of Indian courts and agencies.

We have reliably learnt that when the NSEL case was booked, certain officials of EOW wing raided FTIL office in Andheri. In spite of Mr. Anjani Sinhas insistence , the officers of EOW did not call cyber crime wing of Mumbai police to analyze the server data and find where the original server (which housed the joint data of FTIL-NSEL mails ) was kept. Key incriminating data was lost at the crucial juncture.

The location and detection of original mail server and data of NSEL/FTIL still remains a mystery where we suspect a big foul play. In the past your department has informed the press that the crashed server is being collected form Bangalore for analysis but now the people handling servers at FTIL claim there never was any crash. This proves there is a major cover-up/foul play in investigating mail server data.

Crucial electronic data back up, papers and other evidence at FTIL was not collected which gave the time to accused to tamper and destroy it.

FTIL /NSEL employees in spite of our warnings were allowed to sit in the vicinity of investigation officer leaving them privy to progress and planning of investigation. This shows grave lapse on the part of Mumbai police . Mr. Koshy Jacob who acts as a facilitator for Jignesh Shah was a regular visitor at EOW office till a few months back. He still is regularly seen as MIDC Andheri police station where MCX complaint is pending.

There has been a very weak chargsesheet against Jignesh Shah in spite of Mumbai police knowing much more about his involvement in the scam. Rather than framing charges perfectly most of the content has been lifted directly from FMCs fit and proper order which shows absolute laxity and cavalier manner in which your department is handling the investigation in this scam.

It is learnt that even when in custody Jignesh Shah was treated with kid gloves and was not interrogated severely on key issues.

Mumbai police/State of Maharashtra did not challenge Jignesh Shahs bail in SC while investors with their meager resources challenged it with an SLP. The learned SC bench dismissed it saying that only the state of Maharashtra should challenge this bail. In spite of this being such a high profile case the reason of not appealing is shocking. This clearly underlines the soft stance of Mumbai police on Jignesh Shah

The investigation into insider trading by Jignesh Shah on NSEL by companies controlled by Mukesh P Shah and where La Fin Financial Services P ltd had a stake which was mentioned in the chargesheet has been stalled for unexplained reasons.

Surprisingly telephone call records of Jignesh Shah were not analyzed which is a regular practice in any criminal investigation. Jignesh Shah had about 8-10 mobile numbers registered in different names, these numbers were given by Mr. Anjani Sinha to EOW but shockingly no inquiry was ever made.

Whatever emails of Jignesh Shah and other directors of NSEL/FTIL which are with EOW have been sanitized which is to EOWs knowledge. No efforts have been made

with Cyber crime department to unearth actual email communication of Jignesh Shah and all other directors of FTIL/NSEL

Various MIS reports going from NSEL to FTIL and Jignesh Shah have not been secured or analyzed till date.

Various payment vouchers of NSEL where Manjay Shah and other FTIL directors were signing have neither been scrutinized nor even secured.

You have not even called Manjay Shah to take his statement in spite of knowledge that he was number 2 in the FTIL group and managed all shady affairs including his involvement in NSEL scam brought out in Anjani Sinhas affidavit .

After knowing that FTIL is the promoter and knowing that they gave Rs 125 Crore loan to NSEL in last week of the scam and took the money back on 31st July 2013 (which clearly nails their involvement in the scam) you have not secured/attached the assets of FTIL

No efforts by EOW to secure FTIL assets even after they are restructuring the company and planning to hive off a division which has ODIN its proprietary software worth

about 1000 Crores

No arrest or charges against Joseph Massey, Devang Neralla in spite of direct involvement in the scam.

All board members of FTIL who ratified fraudulent paired contracts in 2010 were culprits but not all charged/arrested

No investigation as to why on the last day of the scam while investors were left unpaid FTIL pocketed back about 50-60 crores it got back form NAFED on 31st July 2013.

NBHC, PD agro (A notorious borrower on NSEL) passed bogus entries to remove the traces of leftover loan from FTIL into NSEL. This has not yet been checked and investigated in spite of our several letters.

Though all emails from NSEL (except 3-4 directors) would first go to FTIL out box where they would be checked for content and then relayed out, no investigation of this aspect and no questioning of people from FTIL who controlled this .

Fixed return calculators inducing investors into NSEL were known to FTIL. In spite of all this evidence you have not named FTIL as an accused and still not secured FTILs assets.

It has been found that all FTIL-NSEL directors have been treated with kid gloves and very soft statements have been taken from them rather than asking pointed tough questions. A mere perusal of statements of FTIL /NSEL directors will prove the seriousness of this investigation.

No Action on Anjani Sinhas custodial statement dated 21/10/13

In spite of Anjani Sinha clearly spilling the beans on Jignesh and FTIL management no investigation was done for many months and the focus was kept only on Anjani Sinha who was merely a lowly pawn in the big scam.

No investigation as to why IBMA traded on MCX and how the losses of about 66 crores were wrongly parked in SNP Designs P Ltd which had no financial dealing with IBMA. Though Anjani clearly bared the role of Jignesh Shah in this case no investigation has been done by you till date to implicate him for playing on his own exchange and falsely parking the losses in the name of third party-SNP Designs P Ltd..

No investigation of Mr. Sheshachalam and Ms. Suchita Panicker (Lawyers used by Jignesh-FTIL) who knowingly prepared false affidavit of Anjani Sinha to hide the main culprit Jignesh Shah and conceal material facts. There should have been fabrication/abetment/conspiracy charges on both these lawyers who are roaming free.

No investigation of Koshy Jacob and Neeraj Sharma who were instrumental in this cover up. Ironically both these men were regular visitors at EOW 5 and were treated with great awe and love.

No investigation of Kalpesh Shah (Jignesh Shahs childhood friend) who introduced Mohan India to NSEL and took about 1 crore from Mohan India and paid it to La Fin Financial Services P ltd (FTILs promoter).

No Strict Action on borrowers

Shockingly one of the largest borrowers Darshan Baldevbhai Patel who has taken 419.30 Crores from NSEL under the account of NK protein Ltd (As per NSEL website) has been called for a statement by EOW wing only 2 weeks back (after 16 months of the scam), Surprisingly there were no raids on him, his bank accounts have not been checked even till date.

Forensic audit of all Borrowers books is not complete and borrowers are dictating how

and when the audit should take place

Money trail not fully established even after 15 months and all accounts where NSEL funds reached not yet frozen

Group bank accounts for quid pro quo financial favours not checked (The borrower could have received money in one company but given back money to FTIL or nominees form another sister company). For example there is a strong belief that NK protein Ltd has taken money in one account but through their other business accounts sent the money abroad and the same money has come back as FII investment in FTIL

Hawala dealings found where money was sent abroad by the borrowers (About 100 Crs sent abroad by ARK Imports) and the names of the beneficiaries not shared by your department with ED who have the domain expertise of such investigation .It is likely that a lot of Hawala money had flown back to FTIL group overseas.

Borrowers being given latitude of running their businesses as usual. NK protein and Dunar Foods are running their business as usual and even advertising their business which proves they have their bank account open. This is a severe compromise and even after our several reminders all bank accounts of all borrowers are not frozen.

Where the borrower has no direct assets and the assets are purchased from 2nd or 3rd level accounts (layering) , all such accounts not frozen (Check the case of Yathuri associates who does not have direct significant assets)

No senior Public Prosecutor to challenge borrowers where they are even asking for quashing of FIR and applicability of MPID. When the borrowers are bringing SC counsels, the state of Maharashtra cannot afford to have a junior counsel as it may hurt the interests of 13000 investor families

No contempt petition filed by EOW in courts even where the repayment schedule agreed by borrowers as promised in court is eventually not met.

No arrest of Shilpa Agarwal of Aastha/Juggernaut though they failed to pay as committed

No arrest of Nimesh Patel even after MPID court rejected his bail application. It is inconceivable that Mumbai police could not find such a high profile individual in India raising several doubts about the intentions of people involved.

No Action at all against an important borrower- LOIL group and Balbir Uppal who claims close political connections.

No full analysis of cash withdrawals by all borrowers. No investigation of 11 Crores paid by Mohan India to NSEL staff who paid this to Punjab Income Tax department guys in cash to cover up NSEL issue. Surprisingly You have not forwarded this aspect to CBI to investigate though it showed flagrant corruption in government department

Zero action on NSEL auditors after 16 months of the Scam

Auditor Mukesh P Shah (internal and statutory auditor of NSEL) was uncle of Jignesh Shah and was privy to diversion of funds and NBFC like activities of NSEL. He was also copied on various emails proving his knowledge and complicity in NSEL fraud however he is neither arrested nor charged so far

Mukesh Shah in his internal audit confirmed that NSEL was doing NBFC activities without any security and the transactions need to be restructured to avoid NBFC license with RBI. This finding alone proves Mukesh Shahs culpability in the scam and is a

reason enough to arrest Mukesh Shah

Auditor SV Ghataliya being statutory auditor knew all about the scam and they are known to be also an auditor of some of the top defaulting borrower companies in NSEL.

Mukesh P Shah was also an auditor of MCX and recipient of bogus donations from MCX

For reasons unfathomable to us the no auditor has been arrested yet and assets of any of the auditors are also not frozen till date

In spite of our giving the list of the web of bogus companies used by Mukesh Shah and his associates to play on exchanges/launder money no action from you. Please investigate Dynamatic Developers Limited (CIN number U70101AS1989PLC003388) carefully as La Fin Financial Service P Ltd (Promoter of FTIL) has a stake in this company. They were big investors on NSEL platform but they and their associated companies removed all their funds just before the scam. This company was also doing bogus wash trades on MCX as well and was registered at Mukesh Shahs address on both NSEL and MCX. This clinches the role of FTIL-Jignesh Shah in the whole fraud and process insider trading.

Misuse of SGF and other related issues

In spite of several letters to you no explanation how the SGF of NSEL was used up and if any broker/investor received out of turn payment.

There was a defaulter Aban Commodities P Ltd who had a liability to pay About Rs 12 Crores to NSEL on 1st August 2013 however due to cooking of NSEL books in the first

week August 2013 he suddenly became a creditor to NSEL. Mr. Bansal from this group is known to be close to Jignesh Shah and has conducted wash trades to the tune of around Rs 10000 Crores on MCX also.(source PWC report)

No action against IBMA and its directors

Even after our repeated complaints and clear role of IBMA as money laundering vehicle and bogus trades to the tune of appx 500 Crores per day on NSEL Eseries no action has been taken

Money from NSEL defaulting borrowers like LOIL, Mohan India, PD agro has been fraudulently diverted into IBMA to make up for about Rs 65 Crore losses it suffered on account of Jignesh Shah's speculative trading losses on MCX. These losses were falsely parked in SNP designs P Ltd.

C & F activity for bogus NSEL pair trades was being handled by IBMA and bogus bills issued to the tune of whopping more than 1 Lakh Crores

Devang Neralla who was the founder member of FTIL was also a director of IBMA but there has been no action so far on him and various other IBMA directors.

All IBMA directors should have been arrested by now and charge-sheeted but no action so far

No action on NSEL brokers so far in spite of multiple investors' complaints and our several letters

Top brokers including Anand Rathi, Motilal Oswal etc have falsely induced investors by promising them existence of stocks and marketing NSEL arbitrage as a safe product though the product was illegal from very beginning.

Criminal breach of trust by brokers as they gave away investors funds without collecting negotiable title documents like delivery order or warehouse receipts (No Warehouse Receipt ever printed by NSEL).

Brokers acted as C & F agents, collected false C & F charges and issued bogus VAT bills worth thousands of Crores without underlying goods.

Bogus charges like Warehouse receipt transfer charges, Transaction charge and Delivery allocation charge, C & F charge levied on investors over and above brokerage whereas no goods ever existed.

Brokers colluded with Jignesh Shah as most NSEL brokers also traded on FTILs other exchanges abroad and rigged those exchanges and collected cash incentives form Jignesh Shah through Hawala.

Rigged market where NSEL and brokers used to punch trades in concert and in understanding with NSEL and no genuine market discovery of price by live bids and

offers with often huge time difference between buy and sell arm of the contracts (mainly with Anand Rathi and Motilal Oswal).

Purchases effected without clients orders in the morning in bogus client names and then

allocated to other users. Rampant client code modifications by all top brokers including Anand Rathi and Motilal Oswal.

Most top brokers were also wealth managers and took powers of attorney (Motilal Oswal for example) to handle goods on behalf of investors.

Brokers had full knowledge about the end borrowers while investors were misinformed that the trades are anonymous.

Though MPID act has a clear provision of attaching trading member's (brokers) assets they have not yet been attached though brokers are accused in the FIR

Forensic reconstruction of crashed NSEL server maintained by FTIL

In spite of our several reminders and after 14-15 months of crash of NSEL servers crucial data in data/mail server of NSEL which was on purpose destroyed/sanitized by FTIL not yet reconstructed.

No Action on other FTIL/NSEL Directors apart from Jignesh Shah and ShreekantJavalgekar

Though Jignesh Shah and Shreekant Javalagekar have been arrested, other directors of FTIL including Ravi and Bharat Seth are not even touched or even interrogated. It is noteworthy that all directors of FTIL and NSEL have been accused in the FIR but neither arrested nor charge-sheeted so far.

Directors of NSEL including Shankarlal Guru (whose son in law Nilesh Patel's company NK Protein was the biggest borrower) ,BD Pawar, Sunil Daga Khairnar- who received bogus donation of about Rs 17 Crores from MCX not yet investigated or arrested. No action against Manjay Shah who was instrumental in all functioning of NSEL and FTIL

Shankerlal Guru who was the chairman and gave more than 900 Crores to his son-in-law should have been arrested as there is no age bar in criminal procedures/ investigation. He was however treated with awe and respect.

NSEL Directors like Sunil Daga Khairnar who were instrumental in facilitating things for FTIL have not even been questioned in spite fo MCX report showing how about 17.75 Crores were paid to bogus entities owned by him as fake donations.

No FIR even after shameless siphoning of public money in MCX brought out in PWC report

The PWC audit report of MCX (already with your department) confirms grave financial irregularities and siphoning of monies out of MCX by FTIL group and Jignesh Shah,

Manjay Shah, Auditor Mukesh Shah etc. but you have not yet booked any FIR though shareholders funds were siphoned in cavalier fashion.

Various NSEL defaulters also rigged prices /conducted wash trades on MCX but this angle not even being investigated even after this has been brought out in MCX report.

The new management has already filed complaints with you but no action has been taken so far.

Some shareholders of MCX who are also NSEL investors have also filed complaints with you on MCX money siphoning but you have taken no action.

We have learnt the complaint filed by the new management of MCX is pending with MIDC police station for past 4-5 months. What is the rationale behind sending 1000+ crore fraud file to MIDC police station which does not have the domain expertise beyond investigating petty crimes like chain snatching, theft , assault etc. ? We get a feeling this was done with a view to sidetrack the whole MCX issue and put the file in cold storage.

If you recollect, we had met you in the month of august 2014 where the role of the brokers in NSEL scam was discussed at length and you had promised that the top 4 brokers will soon be arrested. It has been many months after that but we have seen no action from your side. We have repeatedly asked for your appointment to discuss the progress and issues faced in NSEL investigation. Every time we have been told that the CP is busy and we should try again after 7-10- days. The SIT (Special Investigation Team) formed by you to help NSEL investigation is also a joke as not even 0.5% has been recovered by this SIT in last 6 months. We once again ask you to give us a suitable time and date when we representatives of NSEL investors can see you to discuss NSEL investigation and its shortcomings so far. While the brokers, auditors and other FTIL-NSEL directors-conspirators are making merry, investors of NSEL who have lost life savings are struggling to make even two ends meet. The image of Mumbai police is also at stake and only a swift and stringent action in this scam can redeem it. Thanking you For NSEL Investors' Action Group

(Authorized Signatory) 2/12/2014

CC: The Enforcement Directorate Mumbai The Home Minister Govt. of Maharashtra The Enforcement Directorate Delhi The Finance Minister Delhi The Ministry of Corporate Affairs Delhi The Central Bureau of Investigation Delhi The Prime Ministers Office Delhi