NSEL was set up to provide an electronic platform to
farmers and others for spot market trading in agriculture and other
commodities, but it later emerged that some short- duration forward contracts
were also being traded there. The
NSEL crisis refers to 24 counterparties having defaulted in paying over Rs 5,500
crore to over 13,000 investors after it was discovered in July 2013 that the collateral against which they raised the funds was
virtually non-existent.
National Spot Exchange Limited (NSEL) has been
actively pursuing recovery of outstanding dues from the 24 members. Out of
which two members with a total liability of Rs.196 crore have almost cleared
their dues.
NSEL has now declared 22 members as
‘Defaulters’ on 22nd and 28th August 2013 and 22nd October 2013 as per Rule 41
of the Exchange Bye laws. The total outstanding
amount from these defaulters’ as on November 28, 2014 stood at Rs. 5323.66
crore exclusive of interest payable, post closure of exchange trading on
July 31, 2013. So far, as per media reports, defaulters’ properties worth
around Rs. 5,000 crore have been attached by the Economic Offences
Wing (EOW) of Mumbai Police. Due to this, in the year 2013, stock exchanges
have decided to bar defaulters, who caused the Rs 5,500-crore payment crisis at
NSEL, from all trading activities as per direction from markets regulator SEBI
in the latest crackdown against such entities.
The Bombay High Court has set up a special Committee
under Retd. High Court Judge Honorable VC Daga to monitor and ensure quick
disposal of these assets owned by the Defaulters. The Govt. of India, Ministry
of Corporate Affairs has also intervened and is working to resolve the crisis
at the earliest. More than 13,000 traders/investors are said to have been
affected due to the crisis. The crisis
has also dented the business empire created by entrepreneur Jignesh Shah i.e.
FTIL, a leading technology player in the financial markets. A quick resolution should
bring much needed cheer to important and affected stakeholders related to the
crisis as well as set an example for financial criminals such as these 24
defaulters of the Exchange.
DEFAULTERS
|
OUTSTANDING AMOUNT
|
Mohan India
|
878.39 Crore
|
NK Proteins Pvt Ltd
|
938.24 Crore
|
ARK Imports Pvt Ltd
|
719.37 Crore
|
Loil Health Foods Ltd (Promoter Co. Lakshmi
Energy & Foods Limited)
|
720.34 Crore
|
P.D.Agroprocessors (P) Ltd
|
674.09 Crore
|
Lotus Refineries
|
252.48 Crore
|
Metkore Alloys & Industries Ltd
|
95.08 Crore
|
White Water Foods Pvt Ltd
|
84.82 Crore
|
NCS Sugars Limited
|
51.70 Crore
|
Shree Radhey Trading Corporation Private Limited
|
34.59 Crore
|
Spin Cot Textiles Pvt Ltd
|
38.26 Crore
|
Vimladevi Agro Tech Ltd
|
13.94 Crore
|
MSR Food Processing
|
8.82 Crore
|
Yathuri Associates
|
403.60 Crore
|
Aastha Minmet India Pvt Ltd
|
242.16 Crore
|
Namdhari Rice & General Mills
|
61.41
Crore
|
Swastik Overseas
Corporation
|
93.14 Crore
|
