Business Standard

NSEL declares 10 more members as defaulters

Exchange earlier declared 9 members as defaulters after they couldnt meet 1st payment obligation on Aug 20

Jignesh Shah

Dilip Kumar Jha Mumbai
The beleaguered National Spot Exchange Ltd (NSEL) has declared 10 more members as defaulters after they failed to meet their payment commitment in the second payout schedule on Tuesday.

The exchange had earlier declared nine members as defaulters after they could not meet first payment obligation on August 20. With this, 19 out of 24 members have been declared as defaulters.
 
The exchange in a statement said that it had declared 10 members as defaulters which include : LOIL Continental Food, LOIL Health Foods, Mohan India, Namdhari Food International, Namdhari Rice and General Mills, White Water Foods, Shree Radhey Trading Company, P D Agroprocessors, Swastik Overseas Corporation and Juggernaut Projects.
 
 
NSEL also announced the list of clients who took high positions on the exchange platform through their members. This means, large corporate with reputed names took positions on NSEL through their members for which money trail goes to them.
 
Clearly, members took positions on NSEL for themselves and also for large corporate clients. For example, the clients of N K Proteins include Tirupati Retail (India), the producer and retailer of Tirupati brand edible oil in Gujarat. Also Karnal based P D Agroprocessors traded on behalf Dunar Foods Ltd, the producer of Dunar brand basmati rice.
 
Punjab Wool Traders, one of India’s largest wool importers and distributors, is the client of Ludiana – based ARK Imports, 
Juggernaut Project’s client Southern Ispat and Energy Ltd is one of the largest steel longs producers in north India. It’s Southern Ispat brand saria is very popular there.
 
The secret information revealed for the first time after sharing these details with the income tax (I-T) department. The exchange is scheduled to reveal client wise details of position on Thursday.
 
According to trade sources, the objective of revealing these names is to attract attention of various authorities towards the involvement of large corporate in the entire NSEL fiasco.
Meanwhile, NSEL director Jignesh Shah assured investors that the promoter (Financial Technology) is ready to co-operate with the investigative agency/ies.
 
With an additional collection of Rs 0.80 crore, total pay-in moves up to Rs 104.78 crore against a total pay-out of Rs 349.44 crore resulting into a shortfall of Rs 256.11 crore as on August 28.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 28 2013 | 7:49 PM IST

Explore News