A letter by the NSEL Investors Forum chief Arun Dalmia seems to state that Jignesh Shah is in “advanced discussions” to sell his stake in Financial Technologies which he founded. The letter urges the FT board to not allow such a sale or transfer of Shah’s assets.
Note: I have no idea of the authenticity of this letter but Bloomberg has tweeted the contents so I presume it’s genuine. Strangely, this letter is addressed to Jignesh Shah himself, but it was likely sent to all board members of FT.
I’m not sure who would buy stake in a company like Financial Technologies now, given that the spectre of potential fraud charges will soon hit the subsidiary and likely, the parent as well.
FMC’s report seems to have, according to Moneycontrol, found money laundering in the NSEL operations. Grant Thornton, the forensic auditors, have supposedly stated that borrowers have been defaulting for over two years, but the exchange continued operations.
In this condition, selling the FT stake will have to come with a lot of wink-nudge clauses that protect the buyer from fraud allegations. And given that this is a large scam, with way too many connected investors, things don’t look easy for Mr. Shah.
