The city police's economic offences wing (EOW) has, as part of its ongoing probe into the National Spot Exchange (NSEL) payments scam, attached three bank accounts of that bourse’s parent entity, 63 Moons Technologies (earlier known as FTIL).
Sources said this was to enforce a notification in this regard of the Maharashtra government. The money in question is about Rs 4.8 billion.
NSEL had defaulted on payment totalling Rs 56 billion in August 2013 to about 13,000 investors. Earlier, the EOW had attached assets worth Rs 19 billion of 63 Moons, including shares, mutual funds and bank fixed deposits. The accrued interest and other benefits of the Rs 19 billion in attached assets had been deposited in the three bank accounts which have now been attached.
EOW also proposes to attach the intellectual property rights to ODIN, a software widely used by brokers; it was developed by FTIL. EOW’s proposal in this regard is with the state government. If the state allows this, sources say, the EOW will put all royalty income on this in an escrow account, for distribution to NSEL investors.
Disbursing any of this money needs the sanction of courts. Once the judges in question approve, the money would be put under the jurisdiction of the competent authority appointed for this case under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act.
About Rs 1 billion is with this authority, as of now. Recently, the EOW completed auction of six properties; another 30 have been cleared by court for auction. Of these 30, valuation of 14 has been completed and these likely to come for auction in a month.
63 moons said on the EOW action that this was, “barbaric, unethical and motivated, and we fail to understand the reason, as not a single defaulter's operating accounts have been frozen, to whom the entire money trail has been established”. Also, that the move would affect around 1,000 employees and their families, and at least 800 clients using more than 2.5 million ODIN licences on 500,000 terminals, beside many others. Also, that the police were supporting illegal demands of persons who are yet to be proven as genuine claimants.