NSEL plea: Bombay HC refuses to appoint court commissioner

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SummaryCourt had asked FMC to supervise operations of NSEL and settlement with borrowers

The Bombay High Court on Tuesday refused to appoint a court commissioner on a plea made by scam-hit NSEL as Rs 80 crore was expected to come in from the borrowers in the next few months.

National Spot Exchange counsel SU Kamdar urged the court to appoint a court commissioner as they expected Rs 80 crore to trickle in following settlement with borrowers. However, a division bench refused to grant relief saying they would first admit the petitions and then decide on the proposal of appointing a court commissioner.

Hearing a bunch of petitions filed by investor groups, including the one filed by president of Investors Grievances Forum Kirit Somaiya, a bench headed by Justice Abhay Oka said it would not appoint a court commissioner at this stage. Accordingly, the petitions were posted to January 16 for admission.

Earlier, the court had asked market regulator Forwards Market Commission to supervise the operations of NSEL and settlement with borrowers.

The PIL filed by Somaiya, a former BJP MP, sought a direction for a probe by CBI or any other independent agency into the alleged refusal by NSEL to pay dues to 17,000 small investors, resulting in the R5,600 crore scam.

Other PILs filed by investors alleged malpractices by the bourse in settlement procedures, saying preference was given to bullion deals while ignoring other transactions.

The court had earlier directed all the respondents, including Central Board of Direct Taxes, NSEL and its promoter Jignesh Shah to file their replies.

The court was told that the Mumbai Police Economic Offences Wing is investigating the scam.

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