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Settlement talks between National Spot Exchange (NSEL) and its second largest defaulter, ARK Imports, are locked over the size of the “haircut”.
With a payment obligation of Rs 719 crore, ARK, a Ludhiana-based raw wool importer, held several rounds of talks with NSEL officials for settlement of dues, with encouragement from the city police’s economic offences wing (EOW). However, it sought a 21 per cent cut in the amount owed, saying it could pay Rs 570 crore; NSEL has refused. ARK is scheduled to meet NSEL officials again on Tuesday.
“The offer was too little to accept. However, we are ready to facilitate recovery of investors’ money as smoothly as possible,” said an NSEL official.
The EOW has already attached ARK property worth Rs 450 crore, with another Rs 100 crore worth of assets identified for attachment. Kailash Agarwal, partner of ARK Imports declined to comment.
ARK had been evading settlement talks for almost three months, since its representative visited the EOW in early November 2013. This was despite repeated calls to sit for settlement talks with NSEL.
Discussions with three more defaulters—Yathuri Associates, Aastha Minmet and S R Bhalotia—are on.
Yathuri Associates, with dues of Rs 418 crore, has offered to pay only Rs 350 crore. Aastha and Bhalotia are in negotiations. The next round of talks with these defaulter borrowers is scheduled next week.
