Scam recovery: Sell NSEL defaulter Metkore's stocks in 2 months, says MPID

Written by Jash Kriplani | Mumbai | Updated: Oct 2 2014, 01:34am hrs
NSELMetkore Alloys is a defaulting member on NSEL platform and owes Rs. 95.08 crore. (Reuters)
The NSEL-scam recovery has got a shot in the arm with the Maharashtra Protection of Investors Deposit Court (MPID) directing the sale of Rs 95 crore worth of Ferro Chrome stocks belonging to the defaulter Mekore Alloys within 2 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 on Wednesday said that the NSEL recovery team is working very closely with the Competent Authority for ensuring speedy sale of the stocks by setting up the process of inviting bids.

Appreciating the direction of the MPID Court, Saji Cherian, MD & CEO, National Spot Exchange said, We are very happy that our efforts have started bearing fruit. NSEL management team, along with the support from its promoter, has been relentlessly pursuing recovery of Trading Clients monies from defaulting members. We hope that members and their clients will work with NSEL to recover their money through a more concerted effort. Cherian expressed hope that 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 installment. 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.

The EOW of Mumbai Police has attached over 300 assets of 22 defaulting members and three NSEL accused persons, which stands at around Rs 4,000 crore.