The National Spot Exchange (NSEL) had proposed to initiate default proceedings against Lotus Refineries saying it owes Rs 252 crore to investors. Lotus Refineries, in a legal notice served to NSEL, demanded the defaulter charge be revoked immediately, a statement issued in Mumbai said.
Lotus Refineries charged that the unilateral declaration of NSEL proclaiming Lotus Refineries as a defaulter on August 22, in the face of pendency of commercial dispute, goes against the principle of rule 41 of the NSEL. Lotus Refineries had sent its notice for conciliation to NSEL on August 19. Rule 41 of NSEL details the grounds for default and sets out the procedure for declaration of default and its consequences. Calling upon NSEL to immediately recall the defaulter declaration, the letter states the term defaulter has caused serious reputation loss to the company.