NSEL round up: Bank ac/s of Jignesh Shah, Joseph Massey frozen

The Economic Offences Wing (EOW) of the Mumbai Police have frozen personal accounts of Jignesh Shah, promoter NSEL and Joseph Massey, Former MD and CEO of MCX-SX ,as part of the ongoing Rs 5,600-crore settlement crisis at the National Spot Exchange (NSEL), reports fe Bureau in Mumbai.

The bank accounts of the two would be verified to see whether monies from NSEL were transferred to or from them.

[caption id=“attachment_1010373” align=“alignleft” width=“380”] India’s Multi Commodity Exchange (MCX) vice chairman Jignesh Shah. Reuters[/caption]

The Mumbai police have beenempowered by the Mumbai city and district collectors to attach properties of those accused in the scam, including the promoters and directors of NSEL, under the Maharashtra Protection of Investors Deposits Act 1999.

According to a report in the Business Line , if the value of the property attached by the police did not match the money collected via fraudulent means, even inherited properties of the accused could be attached under the MPID Act.

Assets of Anjani Sinha also attached by Mumbai Police

Meanwhile, assets of Anjani Sinha, the former MD and CEO of NSEL, and Amit Mukherjee, the AVP of Business Development have already been attached by the EOW, reported CNBC-TV18.

Shah was questioned by the EOW last Friday for nearly seven hours in the presence of Anjani Sinha, who is already under arrest on charges related to forgery and criminal breach of trust.

According to EOW officials, Shah would be called for questioning again in the coming days along with other board members.

Mohan India, one of the largest defaulters, agrees to pay R771 crore in one year

Wednesday also saw Delhi-based Mohan India - one of the largest defaulters - reaching an agreement with NSEL to settle its dues over a period of one year.Mohan India had signed an agreement to settle dues, by paying a sum of Rs 771 crore over the course of one year.

The company will make a down payment of Rs 11 crore and the balance as instalments. The firm’s total outstanding is Rs 950 crore.

“We are committed to pay-in and settle our dues over the next one year period, and I am happy that we have reached an understanding with NSEL,” Mohan India director Jagmohan Garg said in a statement.

The release, however, didnot give any details about how the money will be recovered, and what action the NSEL plans to take if Mohan India defaults on the payment schedule. Instead it was full of the usual laudatory quotes from the various stakeholders

According to a report in the Business Standar d, the payment plan stretches the original payment cycle announced in August by at least seven months. But, unlike the earlier plan, the deal is secured by asset mortgages and penal clauses for skipping or delaying instalments.

“The agreement has securitised 500 acres of Mohan India’s land near Bikaner (Rajasthan) and a 14,000-square-yard bungalow plot in New Delhi as part of the settlement process,” the report added.

The EOW also questioned on Wednesday,the directors of two borrowers - PD Agro and Lotus Refineries

Sources told CNBC-TV18 that PD Agro, over the course of interrogative had expressed interest in settling dues with NSEL by paying a sum of Rs 365 crore.

NSEL has raised claims of Rs 678 crore against PD Agro.

Karnal-based P.D. Agro Processors has an outstanding debt of Rs.639.55 crore while Lotus Refineries Ltd owes Rs.252 crore to NSEL. Lotus Refineries has so far given only Rs.8 lakh to the commodity spot exchange.

EOW will seek extension of police custody for Anjani Sinha and Nilesh Patel

Meanwhile, the police custody of Anjani Sinha and Nilesh Patel, the MD of NK Proteins, expires on Oct 31.

They will have to appear before a designated MPID court.

EOW will be seeking an extension of police custody when the case comes up for hearing.