In NSEL row, MPID court orders Metkore to sell Ferro Chrome stocks in two months

Written by Jash Kriplani | Mumbai | Updated: Oct 2 2014, 18:25pm hrs
The NSEL-scam recovery steps got a shot in the arm with the Maharashtra Protection of Investors Deposit (MPID) court directing the sale of Rs 95 crore worth of Ferro Chrome stocks belonging to the defaulter Metkore Alloys within two months.

Justice DP Surana has ordered the Competent Authority, setup by the government, to sell the stocks and deposit the proceeds in NSEL escrow account. Metkore Alloys is a defaulting member on NSEL platform and owes Rs 95.08 crore. NSEL in a press release said the recovery team is working closely with the Competent Authority for ensuring speedy sale of the stocks by setting up the process of inviting bids.

Saji Cherian, National Spot Exchange MD & CEO, said, We are happy that our efforts have started bearing fruit. Cherian expressed hope the order will set precedence for time-bound recovery of default amount by sale of assets and properties of defaulters as attached by EOW.

Meanwhile, Yathuri Associates one of the defaulters having Rs 405.60 crore outstanding payable to the NSEL Trading Clients has agreed to pay Rs 15 crore by January 2015 as part of its commitment to MPID court. It has already submitted a cheque worth Rs 2 crore towards the first instalment. Yathuri had signed settlement agreement with Naraingarh Sugar Mills, Vinayak Merchants and Macro Enterprises to get back Rs 230 crore, which it had allegedly diverted to these companies.