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The Maharashtra Protection of Investors’ Deposit (MPID) Court has directed the competent authority, set up by the Government, to sell ferro-chrome belonging to Metkore Alloys, one of the defaulters on the National Spot Exchange.
Justice DP Surana directed the authority to sell 14,243 tonnes of ferro-chrome stock seized by the Economic Offences Wing (EoW) within two months, and deposit the proceeds in the NSEL escrow account.
The Andhra Pradesh-based Metkore Alloys owes ₹95.08 crore to NSEL investors, said NSEL in a press release on Wednesday.
The EoW of the Mumbai Police has attached over 300 assets of 22 defaulting members worth around ₹4,000 crore. The exchange has to settle trades worth ₹6,500 crore entered on the platform.
Meanwhile, Yathuri Associates, which owes ₹405.60 crore to the NSEL trading clients, has agreed to pay ₹15 crore by January as part of its commitment to the MPID Court. It has already submitted a cheque for ₹2 crore towards the first instalment, said NSEL.
Saji Cherian, Managing Director, National Spot Exchange, said the MPID order would set a precedent for the time-bound recovery of amounts in default by sale of assets and properties attached by the EoW.
The exchange said that its efforts to recover dues from the defaulters were strengthened by the order passed by the Bombay High Court, which had asked it to form a committee to ascertain the defaulters’ dues and oversee the process of asset sale and recovery from defaulters. The committee would then determine the dues payable by the defaulters/ third parties.
Including the bridge loan of ₹360 crore raised through its promoter, Financial Technologies, NSEL has distributed ₹540 crore to 12,735 trading clients. Further, 33,000 e-series investors have received ₹296.43 crore, which accounts for 98.6 per cent of the total value of e-series metal contracts. NSEL has filed five arbitration petitions in the Bombay High Court, 27 applications in the Maharashtra Protection of Interest of Depositors Court and 30 complaints with the Magistrate’s Court with regard to the cheque bouncing case.
The bourse has also filed 20 complaints with the EoW that have not yet been registered as FIRs.
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