FMC ends its auction panel on NSEL

Depletion of human resources, lack of financial resources and weak organisational structure at NSEL has posed a major impediment in the recovery process

The commodity derivatives market regulator, the Forward Markets Commission, has wound up the Monitoring and Auction Committee earlier set up by it to oversee disposal of movable and immovable properties of defaulters on the scam-hit National Spot Exchange (NSEL).

FMC has told NSEL the three-member committee, headed by ex-judge V C Daga, set up by the high court here to ascertain the dues payable by each defaulter and to recover these, will be on the job. Also, most of the assets of the defaulting members have  been attached by the city police's economic offences wing. These are to be disposed by the legal authority appointed under the Maharashtra Protection of Interest of Depositors (in financial establishments) Act.

Some more assets belonging to the defaulters have reportedly been attached by the enforcement directorate and are being dealt with under separate proceedings. Under the circumstances, all the attached assets shall be subject to liquidation or auction by the respective authorities under the relevant laws.

“In view of these, the Commission feels there is no need any more to continue with the MAC at NSEL,” said FMC in the note to NSEL.

The committee was set up in November 2013 to look into the speedy disposal of attached properties of NSEL borrowers in the Rs 5,600-crore payment default. It was later reconstituted. Recently, the progress of recovery of dues was reviewed by FMC. On the basis of feedback received from the members/investors bodies represented on the MAC, the Commission noted the depletion of human resources, lack of financial resources and weak organisational structure at NSEL posed a major impediment in the recovery process.