NSEL signed an agreement with Mohan India in October-end under which the latter agreed to pay in Rs 771 crore out of the Rs 922 crore it owed investors on the bourse over a year. It is learnt that two weeks ago FMC asked NSEL about who would make good the difference of Rs 151 crore, what was the credibility of the agreement and whether the exchange had checked the value of the collateral put up by Mohan India for honouring its commitments.
When contacted, an NSEL spokesperson said that clarifications on the agreement, including that on valuation of collateral, asked for by the regulator were provided to it on Tuesday.
The regulator is of the view that its mandate is to supervise the settlement process and not to approve individual contracts. The agreement between NSEL and Mohan India has a clause, which says that it is subject to approval of the court, FMC and EoW.
The Maharashtra Protection of Interest of Depositors (MPID) Court, hearing the case between State of Maharashtra and borrowers on NSEL, approved the settlement early this month.
The contract was entered as per the Arbitration & Conciliation Act. The court directed Economic Offences Wing (EOW) of Mumbai police — which has filed an FIR against NSEL directors, defaulting borrowers, promoters of the exchange, among others — to keep an eye on properties being liquidated by Mohan India, ensuring these were not sold below market value and funds from the sale of property were not diverted.
The company has put up properties in Civil Lines, Delhi and land around Bikaner as collateral against this agreement. EOW has attached the properties of 24 borrowers, including Mohan India, the directors of NSEL, including Jignesh Shah, in connection with the NSEL case. Rajvardhan, additional commissioner of police, EOW, said that it would lift the freeze on Mohan India's property when approached for liquidation of specific properties.
EOW ISSUES NOTICES TO BROKERS
In the first step of investigation of brokers' role in the Rs 5,500 crore NSEL scam, the EOW issued notices to 148 brokers asking for details on the amount of funds put up by their clients and the extent to which they were funded by the brokers, among other things, said a senior police official.
"We will be examining the books of brokers and consider summoning them after we complete this process," said Rajvardhan.
By ET Bureau | 11 Dec, 2013, 04.52AM IST