 "Govt asks Maharashtra govt to dispose off NSEL case fast")
The Centre on Friday asked the Maharashtra government to quickly auction the Rs 6,000-crore of assets attached as part of the probe into payments scam-hit National Spot Exchange (NSEL), to refund the investors.
The commodities exchange, then owned by Financial Technologies (FTIL), had suspended trading in most of its contracts. An investigation by the Forward Markets Commission, the then segment regulator, pointed to a Rs 5,500-crore fraud, with a default on obligations to market participants due to lack of collateral.
“Action has been initiated by the Government of Maharashtra to auction attached properties...The auction needs to be expedited and the money realised be returned to the investors at the earliest,” stated the finance ministry.
Their statement listed the various steps taken by the government and regulators on the scam. It said the case was being investigated by the Mumbai Police’s economic offences wing (EOW), the Enforcement Directorate (ED), Securities and Exchange Board of India (Sebi), Financial Intelligence Unit–India (FIU) and the ministry of corporate affairs (MCA). Progress was being monitored by the ministry’s department of economic affairs (DEA).
DEA has so far held 11 review meetings, the latest on June 6 under the chairmanship of the department’s secretary, it added. After the Maharashtra government issued a fifth gazette notification on March 17 for attachment of 151 properties worth Rs 358.5 crore, the total value of assets attached so far was Rs 6,115 crore, it was revealed in the meeting. On the merger of NSEL with FTIL (ordered by the Centre), it was informed that the Bombay High Court had restrained the government from notifying the details. “In the review meeting, MCA was requested to take quick action and ensure the case is handled on priority. Further, that a senior officer visit Mumbai to follow up on the court case,” went the statement. The ED is seeking prosecution of NSEL and 67 others under the Prevention of Money Laundering Act (PMLA), over Rs 3,721 crore of money trail. It has been asked to move faster. Additionally, FIU has been directed to try harder for realisation of the Rs 1.66 crore penalty imposed on NSEL for non-compliance with PMLA.
“Government of Maharashtra is working on proposals for providing additional manpower for EOW, investigating the NSEL case on an urgent basis; augmenting the number of designated courts under the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, and deployment of fulltime competent authorities for dealing exclusively with NSEL related work,” said the ministry.
The state government has initiated action to auction attached properties. At the meeting, it was advised to monitor the investigation/prosecution, for expediting the refund of the lost investment.
Sebi has appointed empanelled auditors to conduct a detailed inspection of books of five brokers of the erstwhile FMC whose names figure in the list of offenders received from the EOW. Sebi has been asked to get the audit hastened, with other necessary action.
