EoW arrests one more borrower in NSEL case

Freezes immovable assets of former NSEL officials; sends team to check borrowers warehouses

The economic offences wing (EoW) of the Mumbai police today made one more arrest in the NSEL default case. One of the 24 NSEL borrowers, Arun Sharma of Lotus Refinery with Rs 247 crore outstanding, has been arrested by the EoW today after interrogation.

The company had disputed the claim by the NSEL regarding recovery and also went to court but the police has not trusted and hence for further inquiry arrest has been made.

This has been fifth arrest so far and the case second in which a borrower has been arrested. Nilesh Patel of N K Proteins, which was the largest with Rs 970 crore outstanding is in the judicial custody.

Three others are former NSEL officials including its former MD Anjani Sinha.

Police has also frozen immovable assets of all three former NSEL officials including Sinha, Amit Mukherjee and Jai Bahukhandi. In fact the police has also found that Mohan India second largest borrower had made direct payment to Amit Mukherjee who used this money to purchase a flat in Mira Road, a suburb adjacent to the Mumbai Municipal corporation outer limit in western side.

Mumbai police has also sent a team to visit places of around 20 borrowers along with a team of SGS, an accounting firm which had audited warehouses of all borrowers on how much stock they have and then submitted a report that stock is less than 20 per cent of the commodities these borrowers had shown to the NSEL.

All above developments are leading to the primary conclusion on extent of fraud these officials have made along with the borrowers.

Meanwhile EoW today also interrogated two former directors of the NSEL Joseph Massey and Shreekant Javalgekar.