IIFL Holdings Limited (formerly known as India Infoline Limited) is the apex holding company of the entire IIFL Group, which is a leading financial services company in India, promoted by first generation entrepreneurs.
The NSEL Crisis came to light more than a year ago when the present Defaulters of the Exchange failed to honor their pay-in obligations and Trading Members who traded on behalf of their clients could not receive their dues.
They were around 148 broking members, representing more than 13,000 investors, along with some big brokers such as India Infoline Commodities, Anand Rathi, Geofin Comtrade and Motilal Oswal Commodities involved in NSEL crisis.
As per sources, the investigating agency stated that IICL became a member of NSEL in 2010 and has traded worth Rs 19,183.48 crore. IICL gave its investors false assurances to expect returns between 19 to 21%. “Clients were falsely told that the deals were secured by exchange and contingency funds to protect any losses,” said an EOW officer. IICL also traded in clients’ names without permission.
The Economic Offences Wing (EOW) of the Mumbai Police Crime Branch arrested Chintan Modi, director of India Infoline Commodities, Amit Rathi, director of Anand Rathi Commodities and CP Krishnan, whole-time director of Geofin Comtrade on 3rd March, 2015. The arrested trio had been produced in the special MPID court on Wednesday, i.e. 4th March, 2015.
As per sources, they have been charged for cheating, forgery, criminal conspiracy and criminal misappropriation under the Indian Penal Code. EOW has now arrested a total of 24 suspects in connection with NSEL crisis.