NSEL Scam: EOW pegs value of seized assets at R2,066 cr

The Economic Offences Wing (EOW) of the Mumbai Police has pegged the preliminary valuation of the seized assets of the 26 defaulters in the National Spot Exchange Limited (NSEL) payment crisis case at Rs 2,066.41 crore.

The seized assets include 173 immovable properties, shares and investments worth Rs 6.5 crore and 15 vehicles.

"The paper or book value of properties that we have attached so far is close to Rs 2,066.41 crore. The current market value of these properties may be higher," said Rajvardhan Sinha, Additional Commissioner of Police, EOW.

EOW is likely to appoint a "recognised and registered valuer" to arrive at the current market valuation of these assets. "It may take about 30 to 40 days for the evaluation to conclude once we appoint a valuer," added Rajvardhan.

NSEL, a subsidiary of Financial Technologies (FTIL), is engulfed in a Rs 5,600-crore payment default crisis since August 2013 after the exchange suspended trading of "paired products".

According to Rajvardhan, so far, total 232 bank accounts with cumulative balance of about Rs 43 crore have been frozen. The accounts include those of NSEL promoters while frozen properties consists of assets of defaulters and arrested former employees of NSEL including ex-MD & CEO Anjani Sinha.

Amongst the prominent defaulters, the estimated value of seized assets of Mohan India, NK Protein, Yathuri Associates, PD Agro and Laxmi Overseas stand at Rs 601 core, Rs 455 crore, Rs 357 crore, Rs 276 crore and Rs 252 crore, respectively.

The EOW also indicated that they are still to study books of some of the smaller borrowers and expect attachment of few more properties. The liquidation process of the seized assets is likely to commence after the charge-sheet is filed in the sessions court and the court begins hearing of the appeal.

Meanwhile, the NSEL investor forum through its members approached the Bombay High Court seeking attachments of FTIL properties.

"They have also requested for stay of sale of any assets of FTIL as well as declaration of dividends until all the money of investors is received," said a press release by the forum. The suit will be heard on Monday, the statement added.

MCX asks members to be alert
New Delhi: Commodity bourse MCX has directed its members to exercise due caution while dealing with 22 firms that have been declared defaulters by crisis hit NSEL. In a directive, MCX said, "Members of exchange are requested to note that the entities mentioned in Annexure I have been declared as defaulters by NSEL..." PTI
Courtesy:
ENS Economic Bureau : Mumbai, Sat Nov 30 2013, 00:59 hrs
http://www.indianexpress.com/news/nsel-crisis-eow-pegs-value-of-seized-assets-at-r2066-cr/1201394/0

NSEL scam: Man loses savings, now his father

In what can be called the National Spot Exchange Limited (NSEL) scam's first casualty, an investor lost his 68-year-old father on Thursday, as he couldn't afford the expenses for his heart-valve operation. The man lost all his savings after the company suspended trading on July 31 following a directive from the Union Ministry of Consumer Affairs. NSEL has been unable to settle Rs 5,600 crore dues of 148 members and brokers, representing 13,000 investor-clients.

Matunga resident Ashish Sheth had invested his lifetime savings in NSEL products. "My father was suffering from heart ailments and required to undergo a heart-valve operation. When I approached the hospital, I was told that the cost of the operation would be between Rs 13 lakh to Rs 15 lakh. I couldn't afford the amount since I lost my savings as a result of the NSEL scam," 38-year-old stockbroker told The Indian Express.

"Just a few days ago, he (father Dhirajlal Sheth) told me that the money had been lost so there was no need to run around so much. I had been running in and out of the Economic Offences Wing (EOW) office for the past three months. Now, I have lost him," said an emotional Sheth. He said that he was now worried about his son's future.

"All my money is gone. I am worried about the future of my 21-month-old son," he said. Like Sheth, Ketan Shah (46) had also invested in NSEL, but lost around 50 per cent of his savings. "Sheth and I had invested in NSEL together. While he lost all his savings, I lost half of mine. Even after four months, the guilty are scot-free. The company guaranteed 13 per cent interest on annual investment returns," Shah rued.

Shah, who runs an export business, said he along with Sheth have filed a petition against NSEL and its board of directors in the Bombay High Court. In their petition, both Sheth and Shah urged the court to constitute an inter-governmental group of agencies comprising the EOW, Enforcement Directorate, Income-Tax department and other such agencies to conduct a thorough investigation and to trace the end user of the investors' funds, which have been fraudulently dealt with.

The Bombay High Court had on Wednesday extended the interim anticipatory bail granted to Manish Pandey, North India head of NSEL, by two weeks. It said that the investigating agency should go after the "big fish" involved in the scam and find out where the money lost in the scam had gone.
Courtesy:
aamir.khan@expressindia.com
Mumbai, Sat Nov 30 2013, 02:36 hrs
http://www.indianexpress.com/news/nsel-scam-man-loses-savings-now-his-father/1201469/0