Crisis-hit NSEL has decided to liquidate assets of two defaulters – Mohan India Group and Vimladevi Agrotech, who together owe around Rs. 913 crore.
The development comes following the order issued in August 2013 by the regulator FMC, which is monitoring recovery of dues of about Rs. 5,600 crore at National Spot Exchange Ltd (NSEL).
“To accelerate recovery, NSEL has started the process of liquidation of attached assets of defaulting borrowers. As a first step, assets of Mohan India Group and Vimladevi Agrotech will be liquidated to recover dues,” an NSEL official said.
NSEL has invoked the ‘default clauses’ agreed upon with defaulters Mohan India Group and Vimla Devi Agrotech in the settlement agreement signed recently, the official said.
The crisis-hit exchange has initiated the liquidation process to ensure that the recovery process did not reach a stalemate, the official added.
Mohan India Group, one of the biggest defaulters in the NSEL payment crisis, has a total outstanding of Rs. 922 crore. It had agreed to settle Rs. 771 crore and could pay only Rs. 23.9 crore till date.
NSEL has decided to liquidate Mohan India’s properties in Civil Lines in Delhi and Bikaner in Rajasthan. “Besides, NSEL has also written to the Income Tax Department in Delhi to release Rs. 59 crore from Mohan India as per the MPID court order dated January 8th, 2014,” the NSEL official said.
As for Vimladevi Agrotech Limited, as against a total outstanding of Rs. 14.02 crore, the company has so far paid only Rs. 8,00,000 leaving a balance amount of Rs. 13.94 crore.
To recover the dues, NSEL will be liquidating the company’s soya bean plant in Kota worth around Rs. 14 crore, the official added.
NSEL suspended trade in July last year after two dozen counterparties declared their inability to settle payments amounting to Rs. 5,600 crore to more than 13,000 investors.
As on January 28, NSEL has settled Rs. 308.33 crore.