IAARA NSEL Aggrieved and Recovery Association

vlcRegistered Office Address: Room No. 9, 1"t Ftoor, Khatau Building, 8/10, Mody Marg, Fort,

Mumbai - 400 001, Email lD - nselrg@gmait.comlRegistered under Bombay Public Trusts Act 1950, bearing Regtstration No. H08a2{M) I

BY R.P.A.D

3td November,2015

,/\ ,I*f. Saniay Sood, Joint Director" Ministry of Corporate Affairs,

Government of lndia,sth Floor, A-Wing,Shastri Bhawan,Dr. Rajendra Prasad Road,New De lh i 110 001.

Re: Draft Order of Amalqamation of NSEL with FTIL u/s. 396 of theGompanies Act and Gompanv petition bv the Union of lndia at thePrincipal Bench. CLB New Delhi. aqainst FTIL u/s. 397 & 398

Sub: Continuinq Disreqard of Laws - efforts bv NSEL in connivance. and. under the fundinq of FTIL to defeat the interest of Aqqrieved lnvestors /Depositors

Respected Sir,

NSEL Aggrieved and Recovery Association (NAARA), is a registered association of the

aggrieved investors of NSEL. We had earlier, submitted our detailed representation to your

office, supporting the Draft Order of Amalgamation on loth December 2014 and 27th

February 2015.

We hereby draw your attention to the fresh actions & activities of NSEL and FTIL

concentrated towards siphoning of monies and spending of monies under several heads and

items, in recent days, which are clearly suspicious and objectionable as below. lt raises very

serious concern on the role of the present Board and Management of FTIL and NSEL.

1. NSEL, under the banner of NRG published large advertisements in the Economic

Times dated 26th October,2015 and in the lndian Express & Financial Express on

30th October, 2015. These advertisements were intended to discredit the NSEL

aggrieved investors. We believe that these attempts are made by the parent company

FTIL (in the name of NSEL / NRG) to continue propagating lies, to distract attention

and try influencing the ongoing matters viz. the MCA initiated proceedings of

amalgamation of NSEL with FTIL, and its petition at CLB for superseding the Board of

FTIL. The advertisements / campaigns are also being done with an intention to' mislead all ioncerned about the actual status as well as possibility of the recovery of

1

IAARA NSEL Aggrieved and Recovery AssociationRegistered Office Address: Room No. 9, l"t Floor, Khatau Building, 8/10, Mody Marg, Fort,

Mumbai-400 001, EmaillD - nselrg@gmait.comlRegistered under Bombay Public TrGts Act, 1950, bearing Registration No. E30842(M) I

the monies of the investors.

2. NSEL have stated in their advertisements in the Economic Times dated 26th October,2015 that attachments done by the EOW and ED were possible only because of theirassistance and co-operation. Nothing c'an be more fallacious. The two advertisementsin October month alone is estimated to have cost NSEL Rs.2 Crores plus. lt issignificant to note this in the context that NSEL has not made any funds pay-out toNSEL investors in the last 12 months. Until September 2014, there were negligible /pittance of amounts that they were releasing. tn fact there is no recovery for past

several months that they show in their Escrow account.

3. NSEL is objecting to the merger with FTIL but at the same time is stating in public

domain that it is sourcing funds from FTIL. FTIL acknowledges on providing Loan toNSEL.

4. FTIL is sponsoring several events under the banner of "63 Moons" and "JS lnnovationLab". These sponsorships are an attempt to siphon monies and also to mislead thepublic at large. They have also attempted to change the name of the company to "63Moons Technologies Ltd" which as per last available information with us, was notaccepted by the concerned Registrar of Companies (ROC).

5. We also mention that the Hon'ble Bombay High Court has upheld the applicability ofthe MPID Act upon NSEL and has made observations about monies collected byNSEL as "dgp$'. As it stands today, NSEL owes money to the investors i.e. it hasto repay those deposits.

6. lt is a fact that all such expenses in the name of advertisements, donations, etc. byFTIL Group, have traditionally been misused and they have merely been the meansand ways for its promoter group and associates to siphon out monies from all FTILGroup and their subsidiary companies.

7. We also draw your attention to the Hon. Bombay High Court's interim relief toaggrieved investors by way of restraining FTIL from distributing any Dividends oreffecting the salary (pay-hikes) of associates of Mr. Jignesh Shah.

We have been raising our corlcern I filing complaints with EOW Mumbai. However, we wishto share with you our recent letters to the investigative agency viz. EOW Mumbai, vide ouradvocate's letters dated 29th October,2015 and 2nd November2015 mentioning in detail all

IAARA NSEL Aggrieved and Recovery AssociationRegistered Office Address: Room No. 9, 1"t Floor, Khatau Building, 8/10, Mody Marg, Fort,

Mumbai-400 00{, Email lD - nselrg@gmail.com

[Registered under Bombay Public Trusts Act, 1950, bearing Registration No. E30842(M) I

the nefarious activities of FTIL and NSEL. The said letters are attached herewith for your

reference and records.

These actions, by NSEL and FTIL are highly irresponsible and raises serious questions over

the Board & Management members of both these companies. As a listed entity, while FTIL

lends money to NSEL, as it claims, how can its Board not be conscious to Court directives

on utilization of funds being restricted to specific purposes only and how does the Board not

restrict its use by NSEL only for pursuing legal cases for recovery of monies? How does the

Board of NSEL permit splurging money on advertisements? FTIL Board does not stop a

higher dividend pay-out (where the largest beneficiary of such pay out was Mr. Jignesh Shah

& family), while they are incurring operational losses and despite objections by aggrieved

investors, go ahead with it, only to be eventually restrained by the Hon. High Court.

We therefore request you to consider action against such misadventures by FTIL and NSEL.

lf the required steps are not pressed, then we fear that NSEL and its parent FTIL will

succeed in defeating fair legal actions in the pending proceedings.

Thanking you,

For NSEL Aggrieved and Recovery Association (NAARA)

www.nselrecovery.com

Encl: As above

CC;

,,frr.Tapan Ray, Secretary" Ministry of Corporate Affairs,

A Wing, Shastri Bhavan,Dr. Rajendra Prasad Road,New Delhi - 1 10 001

Yours sincerely,

hnvv.llt4l_- |

Deven Dwarkadas & Partnersoadvocates & solicitors

BY HAND DELIVERY

The Investigation OfficerSIT, EOW, CB CID,Unit V STF Compound,Mumbai

Kind Attn.: Mr. Arvind Wadhankar. EQW Unit'V. Mumbai

Respected Sir,

We on behalf of our clients NSEL Aggrieved and Recovery Association (NAARA) and its

trustee Mr. Madhu Desai draw your attention to our earlier letters, detailing on several

crooked actions of NSEL & FTIL i.e. about their siphoning of monies and spending of monies

under several heads and items that are clearly suspicious and objectionable; some even

violation of the then directives of your office.

It is our understanding that NSEL and FTIL are to submit their monthly / quarterly statement

of accounts (expenses primarily) to your office.

With an intent to request your immediate intervention, we hereby seek your indulgence on

the below.

1. NSEL, under the banner of a sham NRG gave a large advertisement in the Economic

Times edition dated 26th Octob er 2015. lt is an unwarranted and misliading AD that

essentially held brief for their accused Promoter viz. Mr. Jignesh Shah & FTIL, and

commented upon certain issues that are sub-judice, including the fact where they

literally proclaimed that attachments by EOW and ED were only because of their

assistance! ,

111-114, Vardhman Chambers, 17-G, Cawasji Patel Street, Fort, Mumbai - 400 001. lndia.' Phorre: +91-22-6743 9501 / 674i! 9502 . Telefax: +91-22-6655 0922

E-mail : devendwarkadas@vsnl.net / dwarkadaslaw@hathway.comPartners Offices at : Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkatla, Pune.

Associate Offices at : Aurangabad, Bhuvneshwar, Goa, Nagpur, Kanpur, Lucknow, Indore, Jabalpur, Jaipur

DD-NS/N0121330115-1629th October.2015

Sr": {r},/.fi{-} W' {. ):t ,:,t: . !,'

Deven Dworkodos & Portnersadvocates & solicitors

2. FTIL, under the banner of "63 Moons" and JS Innovation Labs" has been sponsoring

several events, in.recent past. lt is worthwhile to note that their attempt to change the

name of the company to 63 Moons Technologies Ltd. was not approved by the ROC.

Not only are all these sponsorships a way to siphon monies but also misleading the

public at large.

It is a different matter, which we will address to appropriate authorities, as to how this whole

"JS Innovation Labs" and "63 Moons" are ingenious methods of Mr. Jignesh Shah, to siphon

out monies from FTIL. Mr. Jignesh Shah is facilitating Shell Companies and striking deals

with non-descript technology entities under the garb of "start up ventures, incubating them,

develops lPRs etc." and then fund them out of FTIL. The monies funded to these entities are

then proposed to be routed back to Mr. Jignesh Shah & associates in near future.

We hereby request you to have necessary action initiated against NSEL and FTIL, believing

fully that such expenses and siphoning cannot be permitted under any circumstance and

more so when numerous proceedings by various authorities are undenivay, against both

entities. You are seized with the fact that Hon'ble Bombay High Court has even directed FTIL

not to distribute any dividends or effect the salary increments to its Directors.

Yours Sincerely,

For Deven Dwarkadas & PartnersAdvocates for NMRA

Anruxr,tt a- - L*

Deven Dwarkadas & Partnersoadvocates & solicitors

BY HAND DELIVERY

DD-NS/No121342t15-162nd November, 2015

The Investigation OfficerSIT, EOW, CB CID,Unit V STF ComPound,Mumbai

Respected Sir,

lnvestors / Deoositors

We on behalf of our clients NSEL Aggrieved and Recovery Association (NAARA), and its

trustee Mr. Madhu Desai, clraw your attention to our earlier letter, submitted on our client's

behalf on 2gth october,2015 at your office, complaining about the continuing malafide

actions of NSEL / FTIL. We further bring to your attention the fresh activities of NSEL as

below.

NSEL has released a full page advertisements in the Indian Express and Financial Express

editions on 31st October 2015. We attach a copy of the same for your reference.

These advertisements, are an attempt to discredit all aggrieved NSEL investors. While

lnvestors and lnvestor Forums believe that all such attempts of FTIL, which is using the

plank of NSEL to continue propagating lies, are to distract attention and try influence (bias)

the ongoing Merger proceedings (initiated by the MCA), it is also an attempt to mislead all

concerned about the recovery of monies of investors'

Our request to your office hereby is to initiate the following investigation to:

(1) Satisfy yourself on any violation of EOIN directives to NSEL about utilisation of its

funds (i.e. permitted expenses), and thereafter seek explanation from NSEL on how

have they been issuing such advertisements (two in a month, with the earlier one

' under the banner of NRG). A clearer perspective would emerge with a focus on:-

orts?l-lour do these advertisements contribute to recovery efi

1 11-114, Vardhman Chambers, 17-G, Cawasii Patel Street, Fort, Mumbai - 400 001. India'. Phorfe : +91-22-6743 9501 / 674d! 9q02 . Telefax: +91'22-6655 0922

E-mail : devendwarkadas@vsnl.netV dwarkadaslaw@hathway.compartners Offices at: Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkatta, Pune'

Associate Offices at: Aurangabad, Bhuvneshwar, Goa, Nagpur, Kanpur, Lucknow Indore, Jabalpur' Jaipur

UIC

Deven Dwsrkodos & Porfnenadvocates & solicitors

# Investigations tilldate by EOW, ED have clearly established that NSEL, with full knowledge

of FTIL Management personnel has committed the FRAUD, and Defaulters have connived

with them.

# The Hon. Bombay High Court (BHC) has upheld the applicability of Maharashtra Protection

of Interest of Depositors Act upon NSEL. The said Order of the Hon'ble Bombay High Court

relied upon your office's Investigation an has numerous scathing observations (facts) about

how NSEL committed the FRAUD. NSEL is liable to repaylhe "Deposits", as it stands today.

(2) These two advertisements in October 2015 are assessed to have cost nearly Rs.2

Crores. This is besides allthe crores of rupees cost on earlier advertisements, books

etc. that theY indulged in.

# lt is significant to note that NSEL has not made any pay-out in the last 12 months to

investors. ln fact, there has been No recovery whatsoever (into the Escrow Account) for past

severalmonths.

# FTIL, through NSEL has been initiating proceedings after proceedings consistently to

frustrate all proceedings at the Hon'bte High Court Commiftee (HCC) by virtue of which the

assessment of investor claims (submitted in Proforma) as directed by Hon'ble Bombay High

Court, is not being allowed to be completed. NSEL applications are in the guise of seeking

status-quo of envelopes containing claims received from Investors on the behest of suspicion

and imagined malafide.

# Meanwhile, for unexplained reasons NSEL is objecting to its Merger with FTIL, but

continues to maintain even in public donrain that it is sourcing funds from FTIL.

Advertisements on borrowed money, is unheard of and unprecedented in corporate history,

except for those corporates that have been caught in FRAUD!

We request that EOW initiate appropriate steps to prevent / disuade utilisation of any funds

for purposes other than permitted viz. Wages, Statutory dues, Legal fees. Where necessary,

EOW should suo moto highlight this mis-utilisation of funds to Hon'ble High Court Committee

We stress that all monies with NSEL, belong to the aggrieved investors, whom NSEL still

owes. Given the Hon'ble Bombby High Court observaiion, NSEL owes "deposits" back to the

Deven Dworkodos & Portnersadvocates & solicitors

aggrieved the expense on advertisements etc. is a humiliation of this observation. The State

(EOW) cannot ignore such violation / contempt.

It is also a fact that all such expenses viz. advertisements, donations etc. by FTIL Group,

have traditionally, been means and ways for Mr. Jignesh Shah and his associates to siphon

out monies from all FTIL group & subsidiary companies. You may recollect the PWC Report

on MCX wherein such malpractices by FTIL, were substantiated.

We believe that there exists enough / compelling reasons for immediate and expedient

action against the irresponsible and conniving (with FTIL) Board & Management of NSEL. To

secure the interest of aggrieved investors, the assets / properties of the present Board

Members & Management of NSEL should be seized I frozen,to ensure that shortfall in funds

with NSEL & FTIL to eventually repay all investors can be met from such assets / properties.

This is necessary, as the present day Board & Management is otherwise deliberately

consuming away the funds, under instructions from FTIL.

Our clients through us have placed before what would be deemed fit and appropriate to

initiate action. lf the steps as should be initiated are not pressed, NSEL and its parent FTIL

will very well succeed in defeating any action pending under Maharashtra Protection of

Interest of Depositors Act, Money Laundering Act, etc.

Yours Sincerely,

For Deven Dwarkadas & PartnersAdvocates for NAARA

Encl: As above

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White we all continue to stand unit€d in pursuing recovery from JEFAULTERT the vested interest groupt continue targetlng the judiclary Investlgiting

agencies, govemrnent ofticials. reputed editors and journalists on social media. with obvious ulterior motives of diverting attention ftom the recovery

efforu. The EoW and ED have already establlshed the money trail to the 24 DEFAULTERS.

These acts of vandatism are led by highly qualified and educated traders, who actually traded in greed through leading broking lirms with best legal and

compliance depadments, under a client-broker agreement Now they are blaming everyone else €xcept their own greed.

Such acts of vandalism cause procedural hurdles like in the case of settlement of e:series contracts, where more than 40,000 inveslors suffered a seven

month rlelay because of a writ petition filed irr the Bonrbay High Court by these vandals. The same vested interest groups ate now obstructing iflvestigation

agencies such as EA EOW and CBI from taking action on defaulters from whom the legitimate recovery is due.

Every independent neutral, and credible mind penning the truth is being hounded

Judge for yourself the character and credibility of greedy Online Vandals'

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