mint - jharkhand scam accused stakeholder in nsel firm - 2013 09 06

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9/10/13 Jharkhand scam accused stakeholder in NSEL firm - Livemint

www.livemint.com/Companies/HwxLw4ESEvA4pZSRy3wLgP/Jharkhand-scam-accused-stakeholder.html

Jharkhand scam accused stakeholder in

NSEL firm

Manoj Punamiya, an associate of former Jharkhand CM Madhu Koda, has a

1.05% stake in Indian Bullion Market Association

NSEL owns 60.88% of IBMA, according to Registrar of Companies.

Updated: Fri, Sep 06 2013. 12 57 AM IST

Mumbai:An alleged hawala operator and key suspect in the Jharkhand money

laundering scam dating back five years owns a stake in an entity controlled by

the National Spot Exchange Ltd (NSEL)a revelation that raises more questions

over the credibility of the crisis-hit commodities exchange.

Manoj B. Punamiya [1], an associate of former Jharkhand chief minister and
http://www.livemint.com/Search/Link/Keyword/Manoj%20B.%20Punamiya


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alleged mastermind of the scam Madhu Koda [2], has a 1.05% stake in Indian

Bullion Market Association Ltd (IBMA), of which NSEL owns 60.88%, according

to Registrar of Companies (RoC) documents seen byMint. He was one of the 11

people who held a more than 1% stake in the company, apart from NSEL, as of

the year ended March 2012.

Some NSEL directors also sit on the board of IBMA, a consortium of leading

bullion dealers and jewellery merchants. An NSEL spokesman confirmed that

Punamiya has been a shareholder of IBMA since 2009.

The revelation comes at a time when the commodities spot exchange is the

midst of a crisis, having to settle Rs.5,572 crore with 148 members and brokers

who represent 13,000 investors.

On 31 July, NSEL abruptly stopped trading in all one-day contracts without

assigning a clear reason for doing so, triggering the payments crisis. The

exchange has fallen short of promised payouts three times in a row after

unveiling a staggered settlement schedule on 14 August.

A special team headed by economic affairs secretary Arvind Mayaram [3] is

investigating the payment crisis and expected to submit its report on 12

September.

The shareholding list of IBMA with RoC states that Punamiya holds 152,764

shares in IBMA.

The NSEL spokesman said IBMA was incorporated on 15 June 2007 and

Punamiya became a shareholder from 2 July 2009.

The Enforcement Directorate (ED), which investigates foreign exchangeviolations, confirmed that Punamiya, who owns the stake in IBMA, is the same

person whose assets have been frozen by the agency in connection with the

Jharkhand scam.

In 2009, Koda was arrested for allegedly siphoning off millions of dollars to buy

mines in Africa and properties across Asia when he held the mining portfolio in

the Jharkhand government. Koda has been charged with siphoning off funds,
http://www.livemint.com/Search/Link/Keyword/Arvind%20Mayaramhttp://www.livemint.com/Search/Link/Keyword/Madhu%20Koda


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illegal investments and money laundering, estimated at anywhere between

Rs.2,000 crore and Rs.4,000 crore by media counts. He was released on bail in

August after having been in jail since 30 November 2009.

When asked whether NSEL was aware of Punamiya facing money laundering

charges, the NSEL spokesman responded, He is a shareholder. Beyond that

NSEL is not aware of his matters, including alleged proceedings.

Punamiyas Zaveri Bazaar address in south Mumbai mentioned in the

shareholding list of IBMA is the registered address of Balaji Bullions and

Commodities (India) Pvt. Ltd, one of the few companies owned by him, which

has been under the scanner of income-tax authorities, the Central Bureau of

Investigation and ED since 2009.

Phone calls made to Punamiyas office were answered by a person whoidentified himself as Mukesh Kumar Jain and claimed to be his cousin. Jain said

Punamiya was travelling and unavailable for comment. He refused to provide

Punamiyas mobile phone number, but said he would arrange a call with

Punamiya.

Until press time on Thursday, Minthad not received a call from either Jain or

Punamiya.

According to the ED chargesheet in the Jharkhand scam, Punamiya through his

associate companies had entered into large number of financial transaction in

projecting the ill-gotten money as genuine and played a major role in

investment of ill-gotten money to the extent of Rs.58.69 crore.

Punamiya, who is currently out on bail, is facing an ED prosecution in a

Jharkhand court for his role in the scam.

The ED investigation in Koda case is still going on in India and in other

countries, such as, Dubai, Thailand, Indonesia and Liberia... Therefore,

possibilities of filing further complaint against the petitioner (Punamiya)

cannot be ruled out as there is every possibility of fresh evidence being collected

in course of ongoing investigation, said a submission made by ED in a

Jharkhand court last year.


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1. http://www.livemint.com/Search/Link/Keyword/Manoj%20B.%20Punamiya

2. http://www.livemint.com/Search/Link/Keyword/Madhu%20Koda

3. http://www.livemint.com/Search/Link/Keyword/Arvind%20Mayaram

When asked whether the fact that he was a stakeholder in IBMA had been

reported to the Financial Intelligence Unit (FIU) of the finance ministry, given

the fact that Punamiya had been accused of money laundering, the NSEL

spokesman said Punamiya had made no transactions with or through

IBMA/NSEL, so there was no report to FIU.

The Forward Markets Commission (FMC), the commodity market regulator thatis overseeing NSELs settlement process, has said that since IBMA is connected

to NSEL, the exchange has to submit to the regulator the details of

shareholding and directors of IBMA, all trading members/clients attached or

connected to IBMA; and the date-wise details of pay-in and pay-out obligation

from 15 July 2013 with respect to all trading members connected to IBMA. FMC

also said no payment can be made to IBMA without the regulators prior

approval.

mint - jharkhand scam accused stakeholder in nsel firm - 2013 09 06

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