FMC says it has noted that lack of financial resources and weak organisational structure at NSEL has posed a major impediment in the recovery process
New Delhi: Scam-hit National Spot Exchange Ltd. (NSEL) has made only a negligible progress in recovery of dues from defaulters, the commodity markets regulator Forward Markets Commission (FMC) has said.
“The Commission has noted that depletion of human resources, lack of financial resources and weak organisational structure at NSEL has posed a major impediment in the recovery process and consequently contributed to negligible progress in recovery of dues by NSEL from the defaulting members," FMC said in a its latest circular.
Recently, FMC had reviewed the progress of recovery of dues from defaulters. The regulator noted that not much progress was made in recovery of dues based on the feedback received from the monitoring and auction committee (MAC), set up to oversee disposal of assets of defaulters on NSEL, it said.
This was communicated while informing NSEL about its decision to wind up the MAC.
Since a three-member committee has been appointed by the high court to ascertain the dues payable by each defaulter and to recover these, MAC has been wound up with immediate effect, the regulator said.
There was “no need any more to continue with the MAC’ as most of the assets of defaulters have been attached by the Economic Offences Wing of Mumbai Police and the same are to be disposed by a legal authority set up under the Maharashtra Protection of Interest of Depositors (in financial establishments) Act, it said.
Some more assets belonging to the defaulters have reportedly been attached by the Enforcement Directorate (ED) and are being dealt with under separate proceedings, it added.
“Under the circumstances, all the attached assets shall be subject to liquidation or auction by the respective authorities under the relevant laws," FMC said.