DELHI: The Enforcement Directorate in its status report submitted to the Finance Ministry today on alleged financial law violations by National Spot Exchange indicated that the crisis-ridden bourse may have violated money laundering laws and a few foreign exchange procedures.
The Enforcement Directorate (ED) was one of the two working groups that was looking into the payment crisis on the commodity exchange.
"The ED has finalised its report and submitted the same to the Finance Ministry. The report speaks about detected violations in a few instances and necessary regulations that possibly were not complied with," a source privy to the development said.
Sources said once the Finance Ministry and a panel of Secretaries, headed by Economic Affairs Secretary Arvind Mayaram, go through the contents of the report, legal action could be initiated against those involved in the operations of National Spot Exchange (NSEL).
The ED, according to sources, could register cases under the Prevention of Money Laundering Act (PMLA) and may also launch a preliminary inquiry to probe forex violations under the Foreign Exchange Management Act (FEMA).
The ED has prepared the report after obtaining data from the Income Tax department and the Forward Markets Commission (FMC) which have probed and gleaned through the finances of the exchange.
The I-T had conducted surveys on two dozen entities which were involved in the exchange last month.
The role of few individuals belonging to NSEL, whose names could not be obtained, figure in the status report.
The other working group probing the same case has been constituted under a Deputy Governor of the RBI.