Mumbai, Mar 22 (FN Bureau) The Bombay High Court granted bail to a former MD and CEO Praveen Kumar Pillai of Universal Commodity Exchange (UCX) in an alleged financial fraud case registered by Economic Offences Wing, Mumbai, in an anticipatory bail application represented by advocate Aashutosh Srivastava. The Universal Commodity Exchange (UCX) was launched under one Mr. Ketan Sheth (Founder) along with the shareholdings given to PSUs such as, National Bank for Agriculture and Rural Development (16%), Rural Electrification Corporation (16%), IFFCO (15%), and IDBI Bank (10%). After a suspected financial scam, UCX activities were stopped in 2014. Praveen Pillai, the former managing director and CEO, filed a complaint against Mr. Ketan Sheth with the Joint Commissioner of Police, EOW.
However, no action was initiated by EOW at that time. Later next year, Pillai resigned from the company, said Adv Srivastava. Following Ketan Sheth’s death in the year 2016, after two years, NABARD’s Law Department filed an FIR against the firm and its directors in 2018 u/s 406, 409, 420, 477-A, 120 (b) r/w 34 of Indian Penal Code for alleged siphoning of funds of crores of rupees raised through NABARD and other Public Sector Undertaking (PSU) respectively including allegations of falsification of books of accounts by the directors. Later on 31 Dec 2021, a Charge sheet was filed against the directors of the beleaguered company. Justice Anuja Prabhudessai of Bombay High Court, while hearing the bail petition argued by Adv.
Srivastava, observed that the FIR prima facie reveals that accusations are mainly against Ketan Sheth, who was the sole signatory of the bank accounts and the major decisions were taken by Ketan sheth. Further, the court noted that the Petitioner was working only in managerial capacity till June 2012 and that he was holding the post of CEO only from July 1, 2012 with records also reveal that he had lodged a complaint against Ketan Sheth in July, 2015 and had tendered his resignation in September, 2015, said Adv Srivastava. The accused sought the relief by filing an anticipatory bail application through his attorney, Adv. Srivastava, after learning of the abovementioned truth. Speaking to reporters today Adv. Srivastava said “I’m thankful that the Honorable Court has considered the merit of the case and granted anticipatory bail to my client”.