The Mumbai police, which is probing the settlement crisis at the National Spot Exchange (NSEL), is trying to recover data from a server that mysteriously crashed after trading was suspended on the bourse. According to a senior official of the Economic Offences Wing (EOW), the server is believed to have stored important data related to mails between officials of NSEL and its parent entity — Financial Technologies India (FTIL).
“We wanted to see the mail communication details (but) were told that the FT server had crashed 2-3 months back and were sent to Bangalore, so we got it from there,” said Rajvardhan Sinha, additional commissioner of police (EOW).
“We have got the mirror server and are sending it for forensic examination,” he added.
Sources said the information retrieved from the server could be important in establishing the flow of information between the senior management of NSEL and those belonging to FTIL, including Jignesh Shah. According to Sinha, the process of retrieving data is not “very difficult” as the servers are based in India. The investigation officers are examining the extent of manual intervention possible in the software systems and also who all were authorised to do such a thing.
Sources add that the police are worried due to the fact that FTIL, which was managing the server, was also the promoter entity of the spot exchange, which is struggling to meet its settlement obligations amounting to R5,600 crore.
“If the promoter or the provider of the technology is also the owner of the business, then there has to be some kind of protocol,” said Sinha. This week will see the EOW calling the directors of NSEL for further questioning.
All the directors have been subjected to at least one round of questioning after an FIR was registered on September 30. The EOW is also examining the books of the joint venture (JV) entity between Adani and NK Proteins as the latter has alleged that the Gujarat-based business entity shifted losses of some of its other ventures into the JV.
“We have got the books of accounts of the joint venture... S V Ghatalia & Associates (which was NSEL’s auditor and has been named in the FIR) was the auditor for this JV. NK Proteins has said that it gave materials and equipment worth R300 crore to the JV... we are looking if the losses shown are genuine,” said Sinha.