NSEL case: HC forms panel to liquidate assets of NSEL borrowers

Committee will be empowered to ascertain the outstanding liability of the borrowers

The high court here has formed a committee to be chaired by a retired judge, V C Daga,  to oversee liquidation of assets of 22 borrowers on the National Spot Exchange Ltd (NSEL), in the class action suit filed by Modern India against the scam-hit bourse.

The committee can call for records of the settlements between the borrowers and NSEL before it was formed. And, to ascertain the dues and undertake a forensic audit on the companies in question. Before any further settlement is made between the borrowers and NSEL, a notice will have to be given to both the court and the Forward Markets Commission (FMC), the futures trade regulator.

Judge S C Gupta said the committee will have to seek permission from the court to gain access to the assets attached by the city police. When the committee wants to distribute money, it will need to send a report to FMC, with the court's permission.