BackNSEL defaulters: court sets up authority to liquidate assets
The authority, headed by a deputy collector, will sell over Rs5,000 crore worth of the defaulters' attached assets
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New Delhi: To speed up the recovery of money from defaulters on National Spot Exchange Ltd (NSEL), the Maharashtra protection of interest of depositors (MPID) court has appointed an authority to liquidate over ₹ 5,000 crore worth of their attached assets.
NSEL, a subsidiary of the Jignesh Shah-led Financial Technologies (India) Ltd, has recovered about ₹ 356 crore out of a total outstanding amount of ₹ 5,689 crore from the defaulting members.
Out of 24 defaulters, only two members have paid fully, while the remaining 22 are still defaulting on payments.
“A competent authority has been assigned by the MPID court to look into the sale proceedings of the attached assets of defaulting members," NSEL managing director and chief executive officer Saji Cherian told PTI.
The authority, headed by deputy collector, has not been given any deadline to complete the liquidation process. However, it will work closely with the Monitoring and Auction Committee constituted by the commodity markets regulator Forward Markets Commission (FMC) for the recovery of money from defaulters at the earliest.
The authority will look into the sale proceedings of all attached assets, worth ₹ 5,200 crore, frozen by the Economic Offences Wing (EOW) of the Mumbai police.
Mohan India Pvt. Ltd, Loil Group firms, NK Proteins Ltd, PD Agroprocessors Pvt. Ltd and Tavishi Enterprises Pvt. Ltd are major defaulters.
Concerned over the slow pace of recovery of money from NSEL defaulters, FMC had recently asked the crisis-hit commodity exchange to strengthen its recovery team and file suits in this regard against all defaulting members.
NSEL has been grappling with a payment crisis since suspending trade in July last year following a government order. Multiple agencies are probing the NSEL’s activities and assets of defaulters have also been attached.
The exchange has also sought the intervention of state governments to recover the dues from defaulters.
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