Mumbai: The city police has frozen bank accounts of the Indian Exchange of Metals (IEM) in connection with a cheating case filed against it by online multi-commodity exchange National Commodity & Derivatives Exchange Ltd (NCDEX).
Bank accounts of Indian Exchange of Metals (IEM) were frozen on December 12, after the Economic Offence Wing (EOW) of the Mumbai police raided the firm, NCDEX said in a statement issued here today.
A senior police official at the EOW told PTI that IEM's bank accounts were frozen as part of the ongoing probe into the case registered last year.
“Economic Offences Wing, Crime Branch Unit of Mumbai Police has frozen bank accounts and conducted raids on Indian Exchange of Metals Ltd on December 12, 2013, and seized records from the warehouse of Indian Exchange of Metals (IEM), Ghaziabad, on a criminal complaint and FIR registered with EOW by the NCDEX,” the NCDEX release said.
The NCDEX and the Forward Markets Commission (FMC) had received numerous complaints against IEM from account holders who did not receive steel delivery to the tune of 4,000 tonnes valued at around Rs 15 crore, the statement said. Promoted by directors of the Supreme Alloys Group, IEM was NCDEX's approved warehouse for facilitating deliveries in steel.
IEM had allegedly cheated its depositors and account holders who had traded on the exchange by not delivering the steel in its custody, the release said.
IEM had refused delivery attributing it to steel shortage due to storage in the warehouse, thereby denying account holders their rightful deliveries and making them incur huge losses, the NCDEX release said.
