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In a major relief for small traders, the MPID (Maharashtra Protection of Interest of Depositor) court on Thursday directed the Competent Authority to give graded fund distribution to traders who lost money in National Spot Exchange.
However, the Court has excluded corporate and partnership firms from receiving preferential payment. The total funds available with the competent authority was ₹250 crore.
In an order issued on Saturday, AS Sayyad, Special Judge (MPID) said small investors with ₹10-20 lakh investment were 2,232 with outstanding of about ₹312 crore. If corporate and partnership firms are excluded, the number would be about 2,040, with ₹284 crore due.
After the payment to those falling under ₹2-10 lakh, an amount of ₹90 crore would still be available.
The payment to individual investors in ₹10 to 20 lakhs range (excluding the corporate and partnership firms) would satisfy 30 per cent of their outstanding balance.
According to the order, such graded distribution to investors based on an equitable formula, depending on the classification, would advance the MPID Act’s purpose.
With this payment, out of unverified 12,735 traders, 9,193 or 72 per cent will be paid fully.
In 2013, NSEL paid 50 per cent to 6,400 traders and 100 per cent to 708 traders with outstanding below ₹2 lakh.
The NSEL crisis was triggered by the abrupt halting of a running exchange by the then FMC chairman Ramesh Abhishek.
The promoters of NSEL, 63 moons (formerly Financial Technologies), have filed ₹10,000 crore damage against Abhishek, then Finance Minister P Chidambaram and the Additional Secretary of Commodities and Capital Markets, KP Krishnan, in the Bombay High Court, which had issued notice.
NSEL, with the support of investigative agencies, has obtained decrees and awards worth ₹4,300 crore. Against the unverified claims of ₹4,800 crore, NSEL has got over ₹6,000 crore worth of defaulters’ assets already attached by the Economic Offence Wing and Enforcement Directorate.
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