National Spot Exchange(NSEL) has recently secured recoveries worth Rs 1,233.02 crore by way of decree on admission against 5 defaulters and through injunctions from a total of 18 defaulters with outstanding of Rs 4,515.93 crore as of December 31, 2015.
NSEL has moved another step in the right direction with this and will look forward to similar decrees against other defaulters.Assets of defaulting traders worth around Rs 5,000 crore, have been attached by the Economic Offences Wing of the Mumbai Police, while the Enforcement Directorate attached assets worth around Rs 800 crore from defaulting trading members.
NSEL has sought to liquidate the assets of the defaulters and deposit the proceeds in an escrow account to be operated under the instructions of a panel constituted by the Bombay High Court. It is working at recovering amounts due from these defaulters.
“We have already secured recoveries amounting to Rs 1233.02 crore by way of decree on admission against five defaulters and through injunctions from a total of 18 defaulters with outstanding of Rs 4515.93 crore as of December 31, 2015. With this, we have moved another step in right direction, and look forward to similar decrees against other defaulters”, NSEL Chief Executive Prakash Chaturvedi said in a newsletter to shareholders.
It is NSEL that has done something in the right direction. Surprisingly, Forward Markets Commission (FMC) never let NSEL management handle recovery and never partnered NSEL’s recovery effort. In fact, the FMC kept taking decisions to destabilize recovery and keep defaulters away from being the focal point.
There have been harsh punishments for NSEL and Financial Technologies Group. FTIL and the managerial professionals were declared not ‘Fit and Proper’ by the FMC, which was made without proper examination and investigation of all the factors concerned and without considering the judicial process currently in progress.
The Government should take all the measures with this recovery in order to bring an early resolution to the problem.