NSEL case: Maha govt to issue attachment notice in four weeks

The Bombay High Court was hearing a petition filed by Vishvanidhi Dalmia against the State government for not acting against the broking firm despite the court’s direction

Maharashtra government assured that it will issue notification for attachment of the concerned properties of IIFL, within four weeks without waiting for the Court’s final decision in the case

Nearly 11 years after the National Spot Exchange payment default came to light, the Home Department of Maharashtra Government has assured the Bombay High Court that it will issue notice of attachment to IIFL Commodities (erstwhile India Infoline Commodities), one of the members of the defunct commodity spot exchange.

The High Court was hearing a petition filed by Vishvanidhi Dalmia against the state government for not acting against the broking firm despite the Court direction. Dalmia was an investor in NSEL through ICL.

In the petition filed in the Bombay High Court, Dalmia accused ICL of luring investor to invest on the NSEL platform, leading to financial losses.

Court summon

The Court had summoned Principal Secretary of Home Department Anoop Kumar Singh after the state government failed to file a detailed affidavit on the action taken to recover money from ICL despite giving multiple opportunity.

In an affidavit the state government said it will issue notification for attachment of the concerned properties of IICL in four weeks from today (March 12).

The assurance given in the affidavit confirms the government’s stance on addressing the grievances of the affected investors

Also read: Air India building in Mumbai now belongs to Maharashtra govt

by attaching the properties under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act (MPID Act).

The case was taken up again on March 12 after the Government filed a vague two page affidavit and the Court summoned the Principal Secretary of Maharashtra Home Department.

Govt assurance

Following this, the state government assured that it will issue notification for attachment of the concerned properties of IIFL, within four weeks without waiting for the Court’s final decision in the case, it said.

This assurance marks a pivotal moment in the ongoing efforts to secure justice for those impacted by the NSEL crisis.

In 2019, the SEBI had declared India Infoline Commodities and other broking firms as ‘Not Fit and Proper’ persons, observing that brokers had engaged in large-scale client code modifications, misuse of KYC norms and money laundering. In 2022, SEBI also cancelled their application for registration as intermediaries.

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NSEL case: Maha govt to issue attachment notice in four weeks