)
A court here has directed a competent authority to sell Metkore Alloys's ferrochrome stocks worth over Rs 95 crore and deposit the proceeds in an escrow account. Metkore owes Rs 95 crore to the National Spot Exchange Limited (NSEL). The exchange had suspended trading on July 31, 2013.
The exchange said, "The NSEL recovery team is working closely with the authority for ensuring the speedy sale of stocks by setting up the process of inviting bids."
Yathuri Associates, which owes Rs 406 crore to NSEL, has agreed to pay Rs 15 crore to the exchange by January. It has paid Rs 2 crore.
Yathuri had signed a settlement agreement with Naraingarh Sugar Mills, Vinayak Merchants and Macro Enterprises to reclaim the Rs 230 crore it had allegedly invested in these.
Saji Cherian, managing director and chief executive, NSEL, said, "We are happy our efforts have started bearing fruit. The NSEL management team, with the support from its promoter, has been pursuing the recovery of trading clients' monies from defaulting members. We hope the members and their clients will work with NSEL to recover their money through a more concerted effort."
Cherian hoped the order would set a precedent for a time-bound recovery of default amount by the sale of assets and properties of defaulters.
Recently the Bombay HC set up a committee, comprising of VC Daga (retired judge of Bombay High Court), J Solomon (practicing solicitor) and Yogesh Thar (practicing CA from Bansi Mehta & Co.) to ascertain the defaulters' dues and oversee the process of asset sale and recovery from defaulters; this committee will meticulously determine the dues payable by the defaulters / third parties.
