Sc forms high-level committee to execute Nsel defaulter recovery
Bombay : The Supreme Court on Wednesday ordered the formation of a committee headed by retired Bombay High Court Judge Pradeep Nandrajog to recover money from NSEL defaulters.
This move will ensure defaulter recoveries at a faster rate. After recovery, this committee appointed by the SC is authorized to proceed to an equitable distribution of the proceeds of the sale after verification of the complaints.
The Supreme Court exercised its powers under Section 142 of the Constitution to appoint a committee to enforce decrees against defaulters in the so-called ₹ 5,600 crore NSEL scam, the company said in a statement.
Adding that NSEL has already obtained decrees/arbitral awards from ₹ 3,534.46 crores against defaulters alone.
Furthermore, the High Powered Committee set up by the Bombay High Court has already crystallized a sum of ₹ 760.31 crore defaulter bonds, which NSEL said would soon be enacted in an executive order.
In the meantime, the company has also stated that the arrest proceedings against NK Protein are worth ₹ 964 crore is pending in the high court.
The Forensic Auditor appointed by the Economic Crimes Wing, Mumbai Police and Serious Fraud Investigation Bureau have confirmed the liability of NK Proteins to ₹ 964 crore. Two of the defaulters have already paid their debts amounting to ₹ 195.75 crores.
Based on the statement, the company said that while all claims made by investors and traders are considered legitimate, recovery from defaulters (after giving credit for the money they paid) s student at ₹5454.52 crore, and their seizure of assets is enough to pay the claims made by investors and traders.
Essentially, these allegations will be verified by a committee appointed by the Supreme Court.
The Committee will oversee and enforce decrees against defaulters by selling assets that have been seized by the State of Maharashtra and the Enforcement Department (ED) across India under the MPID Act. The value of the assets seized by the State of Maharashtra under the Defaulters MPID and Enforcement Directorate (ED) and Decree is more than enough to cover the amount of the claim.
On April 22, the Supreme Court upheld the Maharashtra government’s decision to seize the assets of 63 Moons Technologies Ltd over the alleged National Spot Exchange Ltd (NSEL) scam.
The company said: “All investigative bodies have confirmed the responsibility of the defaulters with the money trail down to the last paise traced back to the defaulters. No money trail is established for NSEL, its administrators or its promoters. The Supreme Court order confirms once again the single-handed efforts of NSEL, which strives to recover defaulters for the benefit of genuine investors and traders.