Tuesday, June 15, 2021
HomeCity NewsGovernment to set up special court for all NSEL cases

Government to set up special court for all NSEL cases

Government decided to set up a special court to hear all NSEL related cases on a priority basis while also asked the Enforcement Directorate to expedite action to recover Rs. 3,721 crore from defaulters, and regulator Sebi to complete probe of brokers at the earliest.

The Ministry of Corporate Affairs (MCA) has also been directed to pursue the court case expeditiously for effecting the merger of now-defunct National Spot Exchange Ltd (NSEL) with its parent FTIL at the earliest.

A decision in this regard was taken in a recent meeting under the chairmanship of Economic Affairs Secretary Shaktikanta Das that reviewed the action taken by multiple investigating agencies on NSEL payment scam of Rs. 5,600 crore.

As per the official statement, the key decisions taken in the meeting are: “A designated judge of the City Civil Court and Additional Sessions Judge, Greater Bombay has been nominated to try various cases arising out of the NSEL payment crisis, in addition to the other assigned matters, by giving priority to NSEL related cases.”

“Meanwhile, efforts are being made to set-up an independent court to hear NSEL related cases on exclusive basis,” it said.

That apart, the government has asked the Economic Offences Wing (EOW) of Mumbai Police to “expedite realisation of value of attached assets, as per the procedure, quickly.”

So far, the EOW has attached 831 properties worth Rs. 7,063 crore under MPID Act, of which, attachment of 711 properties worth Rs. 6,115 crore have been notified in the Gazette of the Government of Maharashtra.

“The Government of Maharashtra was requested to expedite these measures so that the defaulters could be brought to book quickly; money could be realised from the sale of attached assets and consequently be returned to investors of NSEL, who have suffered losses in the payment crisis,” it added.

The nearly Rs. 5,600-crore payment and settlement crisis at NSEL came to light late 2013 and since then the matter has come under the scanner of multiple agencies. ED has arrested FTIL promoter Jignesh Shah and has been remanded to judicial custody till August 1, 2016.

Most Popular

- Advertisment -