Largest NSEL defaulter in police custody

NSEL data showed NKP has paid back Rs 35.44 cr of the total Rs 969.89 cr payable as of August 2013

 

The Economic Offences Wing (EOW) of the Mumbai Police arrested Nimish Patel, the chairman of N K Proteins (NKP), in connection with the Rs 5,600-crore National Spot Exchange Ltd (NSEL) payment scam. Patel’s NKP is the largest individual company defaulter.

The Maharashtra Protection of Interest of Depositors (MPID) court has sent him to police custody till November 6.

Data compiled by NSEL showed NKP has so far paid back Rs 35.44 crore of its total payment obligation of Rs 969.89 crore as of August 2013. NKP owes Rs 934.45 crore as on October 30, 2015.

“We produced Patel before the court and sought his custody till November 6. The court accepted our request,” said a senior EOW official.

Earlier, Patel’s brother Nilesh Patel, the managing director of NKP, was arrested by the EOW and was later released on bail.

“The investigation is not yet complete. We have taken Nimish for investigation,” said the official.

Meanwhile, the Bombay High Court in February 2015 ordered NKP to disclose details of all movable and immovable properties along with details of all bank accounts during trading executed on NSEL. The court passed an injunction in favour of NSEL ordering NKP not to dispose of, alienate, encumber, transfer, part with possession and/or create third party rights in respect of their movable and immovable properties. Attempts to contact Nilesh for his comments did not materialise.