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Business News/ Market / Stock-market-news/  NSEL invites bids to sell ferrochrome stock of defaulter Metkore Alloys
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NSEL invites bids to sell ferrochrome stock of defaulter Metkore Alloys

Bids are invited by NSEL for sale of 14,200 tonnes of ferrochrome at NSEL warehouse in Andhra Pradesh

Metkore Alloys, one among 24 members who defaulted on pay-in obligation of Rs5,600 crore after Jignesh Shah-led NSEL shut down due to violation of government norms, owes Rs114.28 crore. Photo: Abhijit Bhatlekar/MintPremium
Metkore Alloys, one among 24 members who defaulted on pay-in obligation of Rs5,600 crore after Jignesh Shah-led NSEL shut down due to violation of government norms, owes Rs114.28 crore. Photo: Abhijit Bhatlekar/Mint

New Delhi: Crisis-hit National Spot Exchange Ltd. (NSEL) has invited bids to sell off 14,200 tonnes of ferrochrome stock belonging to a defaulter Metkore Alloys and Industries Ltd. in order to recover the balance amount of Rs95.08 crore.

Metkore Alloys, one among 24 members who defaulted on pay-in obligation of Rs5,600 crore after Jignesh Shah-led NSEL shut down due to violation of government norms, owes Rs114.28 crore.

“Bids in sealed cover are invited by NSEL for sale of 14,200 tonnes of ferrochrome at NSEL warehouse in Andhra Pradesh," the NSEL said on its website.

Since Metkore Alloys became a defaulter in fund pay-in, NSEL has initiated process of liquidation of the ferrochrome stock to recover money and pay to the investors, it said.

The ferrochrome stock pertaining to Metkore Alloys having been seized by Economic Offences Wing (EOW) of Mumbai Police, is lying in Srikakulam district, Andhra Pradesh, it added.

NSEL said that bidders should submit bids by 10 May that will be opened on 12 May.

The successful bidder should deposit the entire amount before lifting the commodity. It should be lifted in 10 days from the date of acceptance of bid.

Bids are called from interested buyers, traders or users of ferrochrome who may be interested in buying this commodity on “as is where is and whatever there is" basis, it added.

Besides, the NSEL has also invited application to auction the assets of two defaulters—Mohan India and Vimladevi Agrotech Ltd.

Mohan India owes Rs600.08 crore, of which it has paid Rs52.85 crore to the exchange, while Vimladevi Agrotech has paid only Rs0.08 crore out of Rs14.02 crore dues so far, the NSEL data said.

NSEL said that it has been actively pursuing recovery of outstanding dues from 24 members. While 3 members, with total liability of Rs254.6 crore have reached a settlement with the exchange and cleared/are clearing their outstanding dues.

So far, properties worth Rs3,790.03 crore have been attached of the defaulters. PTI

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Published: 27 Apr 2014, 01:14 PM IST
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