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Lotus Refineries declared defaulter

Oct 23 2013, 04:32 IST
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SummaryArun Kumar Sharma, chairman and managing director of Lotus Refineries Pvt. Ltd. was declared a defaulter by NSEL

Arun Kumar Sharma, chairman and managing director of Lotus Refineries Pvt. Ltd. was declared a defaulter by National Spot Exchange Limited (NSEL). He is also the producer of Satya 2. The film, being produced under the banner Mammoth Media and Entertainment Pvt. Ltd. and LR Media, will release on October 25.

Lotus, which has a vege­t­a­ble oil plant in Ludhiana, ventured into media business through its media wing Lotus Allied Med­iamatics Pvt Ltd. Sharma joi­n­ed hands with Ashwagandha En­tertainment Pvt. Ltd. and Sw­ami Samartha Creations for the marketing and distribution of their movie Dehraadun Diary.

As per the pay-in/pay-out statement of NSEL, the net outstanding of Lotus Refineries is Rs 252.56 crore, of which as on October 15, 2013, the company has cleared dues amounting to Rs 0.08 crore. NSEL has filed a complaint against the company with the Mumbai Police and the police in turn has issued a lookout notice against the company’s promoter. In an affidavit, Anjani Sinha, former MD and CEO of NSEL said Lotus Refineries “did a big fraud by manipulating its stock record and by issuing fake bills,” Sinha said, adding, Lotus was the first case where the NSEL system was jeopardised.

Sinha added, “We were trapped in the rollover mechanism. Lotus was not clearing the dues. Sometimes they were not doing rollover trades. Thus, we were forced to use margin deposits to declare pay outs.”

NSEL filed a case as per the bye-laws of the Exchange against Lotus Refineries. The matter was heard in the Mumbai HC against Lotus Refineries’ counter claim. The court adjourned the case till Friday. However, NSEL claimed that it received a communication from Lotus in May 2013 confirming that it had an outstanding of Rs 252.56 crore.

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