Kailash Gupta, founder and former vice-chairman of the National Multi-Commodity Exchange (NMCE), has been arrested for alleged multi-crore fraud under the Foreign Exchange Management Act and the Prevention of Money Laundering Act.
He was arrested late last night. Today, he was presented before a magistrate, who remanded him to 10-day judicial custody.
In 2011, Gupta was ousted from NMCE, following a controversy. Currently, he doesn’t hold any position in the NMCE board.
According to sources privy to the development, Gupta’s bank and share trading accounts had been frozen and the properties he had bought using the funds from the alleged fraud were being attached.
Investigators involved in the case estimated the fraud at about Rs 10 crore. They said Gupta had floated a number of companies only on paper, and these had been used for money laundering. Efforts are on to ascertain whether others had aided Gupta in the fraud. The investigators suspect the involvement of NMCE employees and bankers.
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