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MUMBAI : The Supreme Court on Wednesday ordered the formation of a committee led by retired Justice of the Bombay High Court, Pradeep Nandrajog to recover money from defaulters of NSEL. 

The move will ensure the recoveries from the defaulters at a faster pace. Post recovery, this SC appointed committee is empowered to conduct an equitable distribution of the sale proceeds after verification of claims. 

The apex court exercised its powers under Article 142 of the Constitution to constitute committee to execute the decrees against the defaulters in the alleged 5,600 crore NSEL scam, the company said in a statement. 

Adding that NSEL has already obtained decrees / arbitration awards of 3,534.46 crore against the defaulters on its own.

Furthermore, the High Powered Committee established by the Bombay High Court has already crystallised a sum of 760.31 crore in defaulters‘ obligations, which NSEL expects would be enacted into decree soon.

Meanwhile, the company also stated that proceedings for decree against N.K. Protein worth 964 crore is pending before the high court.

 The Forensic Auditor appointed by Economic Offence Wing, Mumbai Police and Serious Fraud Investigation Office have confirmed the liability of N.K. Proteins to 964 crore. Two of the defaulters have already paid their liabilities amounting to 195.75 crore. 

Based on the statement the company said if all claims made by the investors and traders are regarded legitimate, the recovery from the defaulters (after providing credit for the money paid by them) amounts at 5454.52 crore, and their attachment of assets is adequate to pay the claims made by the investors and traders. 

Essentially, these claims, will be verified by a committee constituted by the Supreme Court. 

The Committee will supervise and carry out the decrees against defaulters by selling assets that have been attached by the State of Maharashtra and the Enforcement Directorate (ED) across India under the MPID Act. The value of assets attached by the State of Maharashtra under the MPID Act and the Enforcement Directorate (ED) of defaulters, as well as the decree, is more than enough to meet the claim amount.

The Supreme Court on 22 April upheld the Maharashtra government’s decision to attach the properties of 63 Moons Technologies Ltd pertaining to the alleged National Spot Exchange Ltd (NSEL) scam. 

 The company said, “All investigating agencies have confirmed the liability of the defaulters with the money trail upto the last paise traced to the defaulters. No money trail is established to NSEL, its Directors or Promoters.The Order of Supreme Court once again confirms single handed effort on the part of NSEL, which has been working towards recoveries from defaulters in the interest of genuine investors an traders."

ABOUT THE AUTHOR
Priyanka Gawande
Priyanka Gawande is a senior legal correspondent at Mint. She has worked as legal reporter for four years with both television and digital mediums. Based in Mumbai, she reports on disputes across sectors including banking, corporates and finance. This also includes insolvency and bankruptcy cases and intellectual property rights (IPR) litigation. Her focus also comprises tracking capital markets and disputes relating to securities law. Previously, Priyanka worked with Informist Media for 2.5 years covering major insolvency and bankruptcy cases and corporate developments. She started her career in journalism with Business Television India (BTVi) where she reported on primary markets, banking, finance and insurance companies.
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Updated: 04 May 2022, 08:33 PM IST
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