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The economic offences wing (EOW) of the Mumbai police, probing the National Spot Exchange Ltd (NSEL) payment crisis, said it had issued a notice to attach the property of Mohan India, one of the defaulters.
“We are tackling one borrower at a time and have served them (Mohan India) a notice under MPID (Maharashtra Protection of Interest of Depositors in Financial Instruments) Act. Notices are constantly being sent,” said an official.
Mohan India, with group company Tavishi Enterprises, owes Rs 952 crore to NSEL. The company had entered into a settlement with the NSEL and investors forum, but that was followed by a raid by the enforcement directorate which sealed its Rs 100 crore of property.
Meanwhile, share prices of Multi Commodity Exchange (MCX) fell 10.15 per cent on Tuesday to close at Rs 432.65 apiece, on reports of brokerages downgrading earnings. NSEL promoter company Financial Technologies (India) Limited (FTIL) also dropped 5.7 per cent to close at Rs 150.55. Both shares also tumbled because of reports the ministry of corporate affairs had found irregularities during inspection of these and could take action.
Jignesh Shah, chairman and group CEO of Financial Technologies (FTIL), and his colleagues met the Forward Markets Commission on Tuesday. FMC had issued them a showcause notice following the NSEL payment default, asking why they should not be declared unfit to run the MCX, promoted by FTIL.
Shah and others have sought a cross-examination of the forensic audit by Grant Thornton on FTIL. They said the guidelines on the Foreign Contribution Regulation Act were without jurisdiction and there was no legal basis for these.
Shah and two other NSEL directors Shreekant Javalgekar and Joseph Massey, who were also directors on the MCX board, were given a hearing by the FMC on Tuesday. They had replied to the showcause notice on October 31. FMC had called for this meeting so the FTIL brass could make their case on retaining their fit and proper status.
Shah told reporters, “Regarding the submission, we will not be able to say more. We came here to give our bona fides. Resignations had been given, but we want to file the reasons, the logic and other things we have submitted.”
They have reportedly said in their reply it was premature for the FMC to take action now because the investigations were on. They also said allegations related to NSEL were not even adjudicated. Shah, who has resigned from the MCX board, said: “I wish the new board and management all the best.”
