Last week, National Spot Exchange Ltd (NSEL) had declared nine members (buyers), who failed to pay their dues on the first day of settlement on August 20, as 'defaulters' following directives from commodities market regulator FMC.
"Amongst these nine defaulting members, the exchange has initiated case for investigation against five defaulting members who did not have adequate commodities in warehouses, which is against the mechanism specified in the exchange circulars," NSEL said in a statement today.
Of these five defaulters, NK Proteins has a liability of Rs 929 crore. The other four are Ark Imports Pvt Ltd, Lotus Refineries Pvt Ltd, Vimladevi Agrotech Ltd and Yathuri Associates, the statement said.
An NSEL spokesperson told PTI that complaints have been lodged with the Economic Offences Wing.
The Forward Markets Commission (FMC) had also ordered NSEL to ask defaulters to hand over books, documents, papers, assets, cheque books and other documents, and the same should vest with the exchange for the benefit of creditors.
NSEL, promoted by Jignesh Shah-led Financial Technologies (India) Ltd, is facing the problem of settling Rs 5,600 crore dues to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on July 31 on the government direction.
The spot exchange had announced a seven-month plan to settle the dues. However, NSEL was able to pay only Rs 92 crore on August 20, the first day of settlement, out of the scheduled Rs 174.72 crore payout.
NSEL, which appointed SGS, a collateral management firm, to assess the quality and quantity of stocks in warehouses, has been asked by the FMC to submit the terms of the appointment.
NSEL board has already initiated investigation against the management team and its former Managing Director and CEO Anjani Sinha.